Sales: According to the Lake Martin Area Association of Realtors, waterfront-area residential sales totaled 55 units during July, up 89.7% from 29 sales in the same month a year earlier. Results were up 48.6% from the previous month with 37 units sold and 68.7% above the five-year average of 33 closed transactions.
For all waterfront-area home sales data, click here.
Inventory: Homes listed for sale in the waterfront area during July totaled 291 units, a decrease of 1.7% from July 2018’s 296 units and a decrease of 4.9% from June 2019’s 306 units.
Pricing: The Lake Martin waterfront median sales price in July was $454,500, a decrease of 33.2% from one year ago and a decrease of 24% from the prior month. This direction is consistent with historical data (2014-18) indicating that the July median sales price on average decreases from June by 14.5%. 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 July was 152 days, an increase of 10.1% from 138 days in July 2018 and an increase of 16% from 131 days in June.
Forecast: July sales were 25 units, or 83.3%, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 30 sales for the month and actual sales were 55 units. ACRE forecast a total of 170 residential sales in the waterfront area year-to-date in 2019, while there were 214 actual sales in 2019 so far.
ACRE’s statewide perspective: After a slight decline in June, statewide residential sales rebounded in July, increasing 10.2% from 5,722 closed transactions in July 2018 to 6,307 in July 2019. Year-to-date, sales are up 3.1% from 2018, a record year for residential sales. Home price appreciation in the state continued to climb as the median sales price in July increased 4.6% year-over-year from $169,178 to $176,926. The statewide median sales price is up 4.2% year-to-date. While nationwide inventory levels (active listings) decreased 1.6% year-over-year, Alabama’s residential listings continue to tighten, decreasing 9.9% from one year ago. Low inventory levels were a significant factor contributing to rising sales prices throughout 2018 and in the summer buying season of 2019. With low inventory levels, it is surprising to see homes selling at a slightly slower pace than one year ago. Homes selling in Alabama during July spent an average of 89 days on the market, an increase of three days from July 2018.
NAR’s national perspective: After a 7.4% drop in June, existing home sales strengthened in July. Nationwide residential sales increased 3.3% from approximately 523,000 closed transactions one year ago to 540,000 currently. The nationwide median existing-home price increased 4.3% in July, marking 89 consecutive months of year-over-year gains. Lawrence Yun, chief economist for the National Association of Realtors, said, “Falling mortgage rates are improving housing affordability and nudging buyers into the market.” However, he added that the supply of affordable housing is low across the nation. “The shortage of lower-priced homes has markedly pushed up home prices.”
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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.