Sales: According to the Lake Martin Area Association of Realtors, waterfront-area residential sales totaled 40 units during May, up 25 percent from 32 sales in the same month a year earlier. Results were up 48.1% from the previous month.
For all waterfront-area home sales data, click here.
Inventory: Homes listed for sale in the waterfront area during May totaled 317 units, an increase of 16.5 percent from May 2018’s 272 units and a decrease of 0.3 percent from April 2019’s 318 units.
Pricing: The Lake Martin waterfront median sales price in May was $497,000, a decrease of 6.2 percent from one year ago and an increase of 24.3 percent from the prior month. This direction is consistent with historical data (2014-18) indicating that the May median sales price on average increases from April by 5 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 May was 134 days, an increase of 17.5 percent from 114 days in May 2018 and a decrease of 40.4 percent from 225 days in April.
Forecast: May sales were 10 units above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 30 sales for the month and actual sales were 40 units. ACRE forecast a total of 105 residential sales in the waterfront area year-to-date in 2019, while there were 122 sales in 2019 so far.
ACRE’s statewide perspective: While nationwide residential sales dropped 1% in April, demand for housing in Alabama remained strong. Statewide residential sales increased 4.4% from 5,574 closed transactions in April 2018 to 5,820 in April 2019. Year-to-date, sales increased 3.8% from 2018. Home price appreciation in the state continued to climb as the median sales price in April increased 3.2% year-over-year from $155,250 to $160,283. The statewide median sales price is also up 3.2% year-to-date. Although nationwide inventory levels are trending upward, Alabama’s residential listings decreased 10.7% from one year ago. Low inventory levels were a significant factor contributing to rising sales prices throughout 2018 and in the spring buying season of 2019. With low inventory levels, it is not surprising to see homes selling more quickly than in previous years. Homes selling in Alabama during April spent an average of 93 days on the market, an improvement of three days from April 2018.
NAR’s national perspective: During April, total existing-home sales nationwide declined 1.1% from approximately 460,000 closed transactions one year ago to 455,000 currently. The nationwide median existing-home price increased 3.6% in April, marking 86 consecutive months of year-over-year gains. Lawrence Yun, chief economist for the National Association of Realtors, said, “First, we are seeing historically low mortgage rates combined with a pent-up demand to buy, so buyers will look to take advantage of these conditions. Also, job creation is improving, causing wage growth to align with home price growth, which helps affordability and will help spur more home sales.”
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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.