Lake Martin October residential sales up 2 percent over last year

Click here to view or print the entire October report compliments of the ACRE Corporate Cabinet.
Sales: Lake Martin area* residential sales totaled 42 units in October, an increase in sales growth of 2.4 percent from the same period last year. This also establishes a new October peak after 41 units were sold a year ago. Year-to-date sales through October are up 28 percent above 2014. Two more resources to review: Quarterly Report and Annual Report
Forecast: October sales were 2.4 percent or one unit above our monthly forecast. Alabama Center for Real Estate’s (ACRE) year-to-date sales forecast through October projected 432 closed transactions while the actual sales were 525 units, a rise of 21.5 percent.

Sales plummeted to 22 units during October 2007 at Lake Martin, but sales last month were 91 percent higher than that trough.
Supply: The Lake Martin area housing inventory in October was 448 units, a decrease of 14.8 percent from October 2014 and 38 percent below (this is good news) the October peak in 2008 (722 units). In addition, October inventory decreased by 6.5 percent from the prior month. This direction is right in line with historical data indicating that October inventory on average (2010-14) decreases from September by 3.3 percent. There were 10.7 months of housing supply in October (6.0+/- months considered equilibrium in October NSA), a favorable decrease of 16.9 percent from last October’s 12.8 months of supply.
Demand: Residential sales slipped 17.6 percent from the prior month. This direction is consistent with seasonal patterns and historical data indicating October sales on average (2010-14) decrease by 6.4 percent from September.
Pricing: The Lake Martin area median sales price in October was $306,150, an increase of 22.5 percent from October 2014 but a 7.2 percent decrease compared to the prior month. Historical data indicate that the October median sales price (2010-14) typically decreases 10.8 percent from September. Pricing can and will fluctuate from month to month due to changing composition of actual sales (lakefront vs. non-lakefront) and the sample size of data (closed transactions) being subject to seasonal buying patterns. A broader lens as to pricing trends is appropriate and we highly recommend contacting a local real estate professional for additional market pricing information.
Industry Perspective: “Despite recent headwinds, which likely will slow economic growth compared to the first half of 2015, we see positive trends for consumer spending and housing heading into the fourth quarter,” said Fannie Mae Chief Economist Doug Duncan. “Strong home price gains should help drive an increase in household net worth again in the third quarter and, combined with low gasoline prices and mortgage rates, should support strong consumer spending throughout the rest of the year.” To read the full report, click here.
Bryan Davis is the research/media coordinator for the Alabama Center for Real Estate housed within the Culverhouse College of Commerce at the University of Alabama. He can be reached at 205-348-5416 or at bkdavis@culverhouse.ua.edu. The Lake Martin Residential Monthly Report is work product developed in conjunction with the Lake Martin Area Association of Realtors to better serve area consumers. The ACRE monthly report is provided to illustrate the “general” market direction & trends when comparing prior periods with the most current residential data available. Real estate is local and statistics will fluctuate between areas including lakefront and non-lakefront dwellings. ACRE recommends that you consult a local real estate professional for “specific” advice associated with your market. Lake Martin Area Association of Realtors® is your premier source for real estate on Lake Martin, Alabama. Lake Martin is located in east central Alabama about 40 miles northeast of Montgomery and about 115 miles southwest of Atlanta. This Alabama Power Company reservoir encompasses 44,000 acres and has more than 700 miles of shoreline. The Alabama Center for Real Estate‘s core purpose is to advance the real estate industry in Alabama by providing relevant resources in the areas of research, education and outreach.