What an unusual year 2021 was. Waterfront home listings were scarce with prices rising. Economics 101, supply and demand. Supply is low and demand is high driving prices higher.
In 2021 Lake Gaston Realtors closed 268 waterfront home transactions, averaging $685,552 each. Totaling $183,727,816 or an increase of 3.80 percent in dollar sales over 2020 sales. Our average waterfront home listing price was $680,713 at time of contract. The average selling price was 100.71 percent of the asking price. Unit sales of waterfront homes was down 17.79 percent from 2020 because of lack of inventory. Offshore homes showed an increase of 1.23 percent over 2020 sales with 129 closed, averaging $179,904 each, totaling $22,621,597. Waterfront lot sales were also up with 137 sold, compared to 115 last year, averaging $198,027 each, totaling $25,445,850, that’s up 20.90 percent. Offshore lot sales also improved with an increase of 114.46 percent from 2020 levels averaging $20,518 each. Total homes and land (lots) all firms all around the lake closed 663 transactions compared to 688 in 2020. Totaling a record dollar amount of $243,540,808, an increase of 9.09 percent above the same period in 2020. Sales numbers are from the Roanoke Valley Lake Gaston Board of REALTORS® Multiple Listing Service (MLS) and do not include private sales.
The median sales price for waterfront homes in 2021 was $605,000 which sold for 101.34 percent of asking price. This was a 19.92 percent increase in sales price over 2020. The median price for offshore homes was $173,900, selling for 97.21 percent of asking price. This was a 24.26% increase in sales price over 2020. The median price of waterfront and offshore lots has remained flat with 2020 levels.
The increase in sales with lack of available inventory also brought an increase in sales prices. Sales of waterfront homes, which closed below $500,000, was down 49.1 percent over 2020 sales. Sales of waterfront homes, which closed between $501,000 and $800,000, was down 12.6 percent. Sales of waterfront homes, which closed between $801,000 and $1M, was up 18.5% percent. Waterfront home sales for $1M and up increased 300.0 percent. The most expensive waterfront home sold on Lake Gaston was $2.9M. Waterfront homes sold over the asking price in 2021 totaled 118. That is 44.0 percent of the total sold, compared to 80 in 2020 which was 24.6 percent of the total sold.
“Consumer confidence declined this month as rising inflation, and the highly-contagious omicron variant of the coronavirus, dinged the optimism of Americans. The Conference Board said Tuesday that its consumer confidence index — which takes into account consumers’ assessment of current conditions and their outlook for the future — fell to 113.8 in January, from 115.2 in December. Even with the decline, consumer confidence remains high in the U.S. despite surging prices for just about everything. Earlier this month, the Labor Department reported that inflation rose at its fastest pace in nearly 40 years in December, a 7% spike.”
“Prices rose sharply in 2021 for cars, gas, food and furniture but that has not hindered the U.S. consumer. The proportion of people planning to purchase homes, automobiles, and major appliances over the next six months all increased, the Conference Board said.”
National Association of REALTORS® (NAR) reports existing-home sales declined in December, snapping a streak of three straight months of gains, with sales falling in each of the four regions of the U.S. Despite the drop in December, year-over-year sales for 2021 were up 8.5%. NAR also reports pending homes sales are down 2.7% year over year in 2021. "There was less pending home sales action this time around, which I would ascribe to low housing supply, but also to buyers being hesitant about home prices," said Lawrence Yun, NAR's chief economist. "While I expect neither a price reduction, nor another year of record-pace price gains, the market will see more inventory in 2022 and that will help some consumers with affordability."
The median existing-home price for single-family homes across the country was $364,300, up 16.1 percent from a year ago. Housing inventory across the country was down 22 percent from a year ago, days on market continues to be low in most areas.
NAR also predicts a strong year in 2022. “The housing market was doing well at the turn of the year and may normalize, said Lawrence Yun, chief economist at the National Association of Realtors. All markets are seeing strong conditions, and home sales are the best they have been in 15 years, Yun said. The housing sector’s success will continue, but I don’t expect [2022’s] performance to exceed [2021’s]. He said sales may decline this year but predicts that they will exceed pre-pandemic levels. His forecast is based on an expectation of more inventory in the coming months. With more housing inventory to hit the market, the intense multiple offers will start to ease, Yun said. Home prices will continue to rise but at a slower pace. Yun projects that mortgage rates will increase to 3.7 percent in 2022, pushed up by persistently higher inflation.”
Mortgage interest rates remain at low levels, 3.50 percent for a 30-year fixed rate mortgage and 2.50 percent for a 15-year fixed rate mortgage. Both rates have increased by just under a full percentage point from a year ago. Rates are expected to rise slightly through the end of the year.
Available waterfront home inventory remains at an all-time low. In 2021 we had 262 new waterfront home listings become available as compared to 328 in 2020, a 20.2 percent decline. But, in 2021 we sold 268 waterfront homes vs. 326 in 2020.
Have you been thinking about selling your home? There are potential buyers looking for waterfront homes, priced right and in good condition. Do not miss a great time to sell. The shortage of inventory has persuaded potential buyers to buy their lake homes sooner. “Spruce up” your home and get it listed right away! A full-time REALTOR®, who provides written data and gives you a correct value of your home is important.