In the first six months of 2022 our total closed sales, land and homes have totaled $115,091,246 down from $119,234,545 the same period of 2021 or a decrease of 3.47%. Closed sales on waterfront homes were down 7.19% in dollar sales in the first six months of 2022 over the same period last year. We have closed 109 waterfront homes this year compared to 140 last year. The average sold price of waterfront homes in 2022 is $790,850 up 19.21% over the same period in 2021. The median price of waterfront homes sold in 2022 was $725,000, up from $574,500 last year or a 26.20% increase. The increase in the median homes sales price here on the lake point to a combination of home prices increasing and sales of higher priced homes. On 7/6/22, we show 22 waterfront homes sold on the lake for a $1M or more this year. Seventeen sold in the same period of 2021 and 3 sold in 2020. The National Association of REALTORS (NAR) reports the median sale price of homes nationally has risen 14.6% over the same time last year.
This year, 69 offshore homes have sold, and their total dollar sales are up 63.64% this year compared to last year. Waterfront lot sales are down 44.91% in dollar sales from last year with about half the number of lots sold in 2021.
All sales numbers are from the Roanoke Valley Lake Gaston Board of REALTORS® MLS and do not reflect private sales.
Getting “priced out of the market” is a fate that first and second home buyers might face in today’s real estate market. After a pandemic-driven boom in the sector; we see higher home prices and loan increases slowing demand for properties. Second home prices have surged. Mortgage rates climbed to today’s rate of 7.5%. Since the first week of January, when rates averaged a little lower than 3.0%, mortgage payments have become increasingly unaffordable. Second-home buyers face even greater costs than those recent increases. The federal government increased loan fees for second homes on April 1. For a typical buyer that means an about $13,500 added to the cost of buying a $400,000 home.
Existing-home sales are down for the fourth consecutive month in May, according to the National Association of Realtors®. Total existing-home sales, transactions that include single-family homes, fell 3.4% from April. Year-over-year, sales are down 8.6% according to the National Association of REALTORS (NAR). "Home sales have essentially returned to the levels seen in 2019 – prior to the pandemic – after two years of gangbuster performance," said NAR Chief Economist Lawrence Yun. "Also, the market movements of single-family and condominium sales are nearly equal, possibly implying that the preference towards suburban living over city life that had been present over the past two years is fading with a return to pre-pandemic conditions." "Further sales declines should be expected in the upcoming months given housing affordability challenges from the sharp rise in mortgage rates this year," Yun added.
The Consumer Confidence Index® decreased in June, following a decline in May. The Index fell to 98.7 down 4.5 points from 103.2 in May—and now stands at its lowest level since February 2021. “Consumer confidence fell for a second consecutive month in June,” said Lynn Franco, Senior Director of Economic Indicators at The Conference Board. Consumers’ grimmer outlook was driven by increasing concerns about inflation, in particular rising gas and food prices. “Purchasing intentions for cars, homes, and major appliances held relatively steady—but intentions have cooled since the start of the year and this trend is likely to continue as the Fed aggressively raises interest rates to tame inflation. Meanwhile, vacation plans softened further as rising prices took their toll. Looking ahead over the next six months, consumer spending and economic growth are likely to continue facing strong headwinds from further inflation and rate hikes.”
Mortgage rates have increased sharply; a local lender is quoting 7.514% interest on a 30 year second-home mortgage and 5.985% for a primary home. The same time last year that rate was 2.875% interest on a 30-year mortgage. Again, rising prices and increased mortgage rates have forced potential buyers to rethink their need to buy a second home.
The cost of homeowner’s insurance has also increased. First, in June the Department of Insurance approved a rate increase averaging 7.9% in the state of North Carolina. The second cause driving rising premiums is inflation. A homeowner needing to rebuild will incur a much higher cost. The cost of materials and labor are rising and there are supply chain issues. COVID impacted everything.
Our inventory of quality homes in the Lake Gaston market continues to be low. Now is a good time to list your home if you have been thinking of selling. List your home before the market cools off more. Contact a full-time, REALTOR® with working knowledge of the Lake Gaston market. Ask them to provide written data on properties sold and listed in this area. When listing your property, price it according to comparable ones on the market. Remember, buyers’ frown at time wasted looking at overpriced properties. Overpriced properties sit on the market and become stale. Eventually selling at a lower price because of a wrong listing price at the start.
More people are enjoying the Lake Gaston area. We see growth in both residential and commercial development. Lake Gaston Realtors love helping people find their dream home or business at the lake!
Barney Watson is the owner of Lake Gaston Real Estate, LLC and he is Director for the Roanoke Valley Lake Gaston Board of REALTORS®. His cell is 252-532-3274 and website is www.lakegastonrealestate.com.