Sales: Lake Martin waterfront sales totaled 24 units during April, down 27.3 percent from one year ago. The 10-year peak for April waterfront sales was in 2017, when 33 units were sold, while the trough hit in 2009, with only nine units sold.
Forecast: April results were three units or 11.1 percent below the Alabama Center for Real Estate’s monthly forecast. ACRE projected a total of 89 waterfront sales through April, while there have been 81 actual sales.
Supply: The Lake Martin waterfront housing inventory in April was 276 listings, an increase of 9.5 percent from the previous month and a decrease of 0.7 percent from one year ago.
Pricing: The Lake Martin waterfront median sales price during April was $460,000, an increase of 18.7 percent from the previous month and an increase of 22.7 percent from one year ago. Pricing will fluctuate from month to month because of changing composition of actual sales (lakefront vs. non-lakefront) and the sample size of data (closed transactions) being subject to seasonal buying patterns. ACRE recommends contacting a local real estate professional for additional market pricing information.
Demand: April waterfront sales decreased 17.2 percent from the previous month. This is consistent with historical data indicating that April sales on average (’13-’17) decrease from March by 3.8 percent. Waterfront homes selling in April averaged 73 days on the market, representing a 46.3 percent improvement from one year ago. Waterfront homes on Lake Martin are currently selling 63.6 percent faster than the five-year April average of 200 days on the market.
Seeking balance: There were 11.5 months of supply in April, up from 8.4 months of supply one year ago. Restated, at the April sales pace, it would take 11.5 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand on a non-seasonally adjusted basis) is approximately 6 months.
Industry perspective: Statewide, residential real estate sales continued to show growth during the first quarter of 2018 as they grew 2.4 percent from the first quarter of 2017. Low inventory levels, however, played a large role in driving prices upward. During the first quarter of the year, the statewide median sales price increased 7.1 percent from one year ago. Although good news for sellers, this price growth, combined with rising interest rates, could lead to affordability issues for buyers in today’s markets.