REALTORS® around the lake agree that 2022 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 also decreased dramatically as quality lots are also in short supply.
In the first nine months of 2022 we have sold 162 waterfront homes, averaging $808,464 each totaling $130,971,126. The average price is up 19.27% of the average sale price for the same time period in 2021. 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 2022 is $742,500 compared to $600,000 in the same nine months of 2021, totaling an increase of 23.75%. The total dollars sales of waterfront homes is down 4.82% in the first nine months of 2022 compared to the same time period of 2021.
Offshore home sales this year total $24,872,280 compared to $17,477,220 in the first nine months of 2021. Totaling an increase of 42.31%. The average offshore homes sold for $220,169 compared to $183,971 in 2021 during the same time period. Resulting in an increase of 19.68%.
Waterfront lot sales are down 43.75% in unit sales with 63 sold in 2022 and down 38.63% in dollars sales compared to 2021 sales for the first nine months. The average waterfront lot has sold for $204,436 this year. Unit sales of offshore lots totaled 89 at the end of September and that was the total at year-end 2021.
Out total market, homes and lot dollar sales in the first nine months of this year total $174,758,729, a decrease 2.16% of the same time period in 2021.
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 stands at 109.3, down from 115.2 in August.
The Consumer Confidence Index® increased in September for the second consecutive month. The Index stands at 108.0, up from 103.6 in August. “Consumer confidence improved in September for the second consecutive month supported in particular by jobs, wages, and declining gas prices,” said Lynn Franco, Senior Director of Economic Indicators at The Conference Board. Concerns about inflation dissipated further in September—prompted largely by declining prices at the gas pump—and are now at their lowest level since the start of the year.” “Meanwhile, purchasing intentions were mixed, with intentions to buy automobiles and big-ticket appliances up, while home purchasing intentions fell. The latter no doubt reflects rising mortgage rates and a cooling housing market. Looking ahead, the improvement in confidence may bode well for consumer spending in the final months of 2022, but inflation and interest-rate hikes remain strong headwinds to growth in the short term.”
Existing-home sales decreased slightly in August, marking the seventh consecutive month of declines, according to the National Association of REALTORS® (NAR). Total existing-home sales, were down 0.4% from July, year-over-year, sales faded by 19.9%
Pending home sales also decreased for the third straight month in August, according to the NAR. The Pending Home Sales, a forward-looking indicator of home sales based on contract signings, fell 2.0% in August. Year-over-year, pending transactions are down by 24.2%.
"The direction of mortgage rates – upward or downward – is the prime mover for home buying, and decade-high rates have deeply cut into contract signings," said NAR Chief Economist Lawrence Yun. "If mortgage rates moderate and the economy continues adding jobs, then home buying should also stabilize."
Yun expects the economy will remain sluggish throughout the remainder of this year, with mortgage rates rising to close to 7% in the coming months. "Only when inflation calms down will we see mortgage rates begin to steady," said Yun. As a result of the current interest rate environment and weaker economic activity, NAR expects existing-home sales to decline 15.2% in 2022, while new home sales are projected to fall by 20.9%.
Interest rates at the time of writing were 6.6% for a 30-year mortgage on a primary home and 8.375% for a second-home.
In the first nine months of 2022 we have seen 163 new listings on waterfront homes. Compare that to 196 the same time period of 2021. This number also points to our inventory shortage.
We are seeing the real estate market cooling down here at the lake. If you have been thinking about putting your Lake Gaston property on the market now is a great time before interest rates increase more and the economy continues to slow. We have buyers waiting for that right property to come available. To find a buyer you need to price your property competitively in our currently changing market. Give me a call or send me an email, I’ll be happy to give you my opinion of value.