By: Barney Watson – REALTOR / Broker / Owner – Lake Gaston Real Estate, LLC
REALTORS® around the lake agree that 2021 is a challenging year for real estate. The shortage of listings continues as buyers wait eagerly to buy lake property. We have experienced inflated pricing, multiple offers, and waterfront homes selling for over asking prices. When compared to last year this time, we see a lack of available waterfront home inventory has slowed sales. Lot sales have increased dramatically with buyers opting to buy vacant lots and build, because they cannot find the waterfront home to fit their needs. Custom builds around the lake are at record numbers. We are also starting to see spec homes under construction. Plus, a couple of developments are on the planning table.
In the first nine months of 2021 we have sold 200 waterfront homes, averaging $676,119 each totaling $135,612,916. The average price is up 31.41% of the average sale price for the same time period in 2020. Resulting from a combination of inflated prices, because of inventory constraints, and the increased sale of larger, more expensive homes. The median sold price of waterfront homes in 2021 is $600,000 compared to $467,250 in the same nine months of 2020, totaling an increase of 28.42%. The total dollars sales of waterfront homes is up 12.32% in the first nine months of 2021 compared to the same time period of 2020.
Offshore home sales this year total $17,607,200 compared to $16,036,095 in the first nine months of 2020. Totaling an increase of 9.80%. The average offshore homes sold for $183,408 compared to $144,469 in 2020 during the same time period. Resulting in an increase of 26.95%.
Waterfront lot sales are up 52.05% in unit sales with 111 sold in 2021 and up 55.77% in dollars sales compared to 2020 sales for the first nine months. The average waterfront lot has sold for $185,704 this year. Unit sales of offshore lots are also up 56.14% of 2020 sales.
Our total market, homes and lot dollar sales in the first nine months of this year total $176,255,767, an increase 16.53% of the same time period in 2020.
As I mentioned before, we are starting to see sales slowing because of inventory shortages. The end of August our dollar sale increase was 25.87%., the end of July up 39.77%., the end of June up 52.92% and the end of May up 77.66%. I believe the increase is slowing because of the large increases towards the end of 2020 plus the shortage of available waterfront homes on the market.
All figures are from the Roanoke Valley Lake Gaston Board or REALTORS Multiple Listing Service and do not reflect private sales.
The 30-year mortgage rate today is 3.35%, up almost a full point since last year this time. The rates are still low, I hope this will not hinder sales here at the lake.
The Consumer Confidence Index® declined again in September, following decreases in both July and August. The Index now stands at 109.3, down from 115.2 in August.
“Consumer confidence dropped in September as the spread of the Delta variant continued to dampen optimism,” said Lynn Franco, Senior Director of Economic Indicators at The Conference Board. “Concerns about the state of the economy and short-term growth prospects deepened, while spending intentions for homes, autos, and major appliances all retreated again. Short-term inflation concerns eased somewhat but remain elevated. Consumer confidence is still high by historical levels—enough to support further growth in the near-term—but the Index has now fallen 19.6 points from the recent peak of 128.9 reached in June. These back-to-back declines suggest consumers have grown more cautious and are likely to curtail spending going forward.”
The National Association of REALTORS (NAR) reports in August 2021, each of the four major U.S. regions experienced declines in existing home sales on both a month-over-month and a year-over-year perspective, breaking a two-month streak of increases. Pending home sales rebounded in August, recording significant gains after two prior months of declines, up 8.1%.
In the first nine months of 2021 we have seen 196 new listings on waterfront homes. Compare that to 259 the same time period of 2020. Compare that to the 192 waterfront homes that went under contract 2020. These two numbers also point to our inventory shortage.
If you have been thinking about putting your Lake Gaston property on the market now is a great time. We have buyers waiting for that right property to come available. Keep in mind the importance of pricing your property competitively to find a buyer. Give me a call or send me an email, I’ll be happy to give you my opinion of value.