Sales: According to the Lake Martin Area Association of Realtors, waterfront-area residential sales totaled 13 units during February, down 13.3 percent from 15 sales in the same month a year earlier. Results were one sale below the five-year February average of 14 sales.
For all waterfront-area home sales data, click here.
Inventory: Homes listed for sale in the waterfront area during February totaled 258 units, an increase of 25.2 percent from February 2018’s 206 units and an increase of 15.7 percent from January 2019’s 223 units.
Pricing: The Lake Martin waterfront median sales price in February was $595,000, an increase of 14.4 percent from one year ago and an increase of 45.1 percent from the prior month. This direction is inconsistent with historical data (2014-18) indicating that the February median sales price on average decreases from January by 5.7 percent. The differing sample size (number of residential sales of comparative months) can contribute to statistical volatility, including pricing. ACRE recommends consulting with a local real estate professional to discuss pricing, as it will vary from neighborhood to neighborhood. The average number of days spent on the market (DOM) by waterfront homes that sold during February was 133 days, a decrease of 29.6 percent from 189 days in February 2018, and a decrease of 36.1 percent from 208 days in January.
Forecast: February sales were equal to the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 13 sales for the month and actual sales were 13 units. ACRE forecast a total of 288 residential sales in the waterfront area in 2019, while there were 346 sales in 2018.
ACRE’s statewide perspective: After a strong 2018, statewide residential sales in January increased 1.1 percent year-over-year from 3,320 to 3,358 closed transactions. Home price appreciation in the state continued to climb as the median sales price in January increased 5.5 percent year-over-year from $143,152 to $151,015. Although nationwide inventory levels are trending upward, Alabama’s residential listings decreased 7.4 percent from one year ago. Low inventory levels were a significant factor contributing to rising sales prices throughout 2018. With low inventory levels, it is not surprising to see homes selling more quickly than in previous years. Homes selling in Alabama during January spent an average of 106 days on the market, an improvement of 10 days from 2018.
NAR’s national perspective: During January, total existing-home sales nationwide declined 9 percent from approximately 313,000 closed transactions one year ago to 285,000 currently. Lawrence Yun, chief economist for the National Association of Realtors, said, “Existing home sales in January were weak compared to historical norms; however, they are likely to have reached a cyclical low. Moderating home prices combined with gains in household income will boost housing affordability, bringing more buyers to the market in the coming months.”
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The Lake Martin Waterfront Residential Monthly Report is developed in conjunction with the Lake Martin Area Association of Realtors to better serve area consumers.