By: Barney Watson REALTOR - Broker with RE/MAX On The Lake
We continue to hear positive news about the housing
market across America. A recent article
in the Wall Street Journal stated in certain markets housing prices are on the
rise. In many markets foreclosures have
slowed which helps create slightly higher prices. Sold foreclosures reduce the
amount of inventory on the market.
Interest rates remaining at record low levels are also helping the
housing market gain momentum. National
Association of REALTORS also reports new housing starts are on the rise. The home builder index (XHB) shows a gain of
25.94% YTD and other home builder stocks have nice year-to-date gains as well.
The Consumer Confidence Index increased to 65.9 in July
from 62.7 in June. These levels are well below the 90.0 level which indicates a
healthy economy. The index fell to a
record low of 25.3 in February 2009.
Most consumers have a better view of the job market as well, maybe not
immediate but within six months. U.S.
Consumer spending remains flat while income levels increased slightly.
In July of 2012 there were 21 properties in the lake area
closed for a total of $6,284,950. In
July of 2011 there were 20 properties closed for a total of $7,894,000. The first seven months of 2012 we have
experienced a total of 154 closed transactions totaling $41,010,200 as compared
to 118 transactions in the same period of 2011 totaling $38,214,000 or up
7.3%. Leading in sales are waterfront
homes with 80 sold this year for a total of $30,526,675 in 2012. The first seven months of 2011 we saw 65
waterfront homes sold for a total of $33,075,250.
The average selling price of a waterfront home on Lake
Gaston in the first seven months of 2012 was $381,583 as compared to $508,850
in 2011 and $462,394 in 2010. We have
seen buyers purchase lower priced waterfront properties in need of repair
and/or major remodel. Another factor in
the decrease of the average selling price is the difficulty in some cases to
obtain financing. Lenders are very
cautious in processing mortgage loans.
Currently the lake area inventory of waterfront homes is
on the decline. Buyers continue to
search for value in properties, not necessarily bargains but the most value available
for the amount they have to spend.
Most buyers begin their search for Lake Gaston property
on the internet before they decide on a REALTOR. Buyers have more tools available such as
county websites, mapping sites, educational blogs and MLS sites than ever
before. A property listing must hold
the buyer’s attention or it loses out. Mostly,
when a buyer finds a property they like, they will begin to research that
property. They easily find the assessed
value, date bought and purchase price.
They can go to sites such as Google Earth to check out the
neighborhood. Zillow, a real estate
website which offers clients a “Zestimate” on the property. Other real estate websites offer similar
features. Sometimes buyers have a
predetermined value of various lake properties.
An experienced, educated REALTOR can bring them up-to-date on the
current market conditions.
When selling, setting the price correctly in the
beginning is vital. The National
Association of REALTORS and local market statistics have confirmed an
interesting trend….Homes that have price reductions take three times longer to
sell and normally bring less than market price.
Buyers are not looking at overpriced listings. What’s the only reason a property does not
sell? Answer is Price. Incorrect pricing equals a longer marketing
time. A longer marketing time equals
less money in your pocket.
So far 2012 is shaping up to be a fantastic year in real
estate at Lake Gaston, we are excited about our future.
Barney Watson with RE/MAX On The Lake can be reached at
252-532-3274 or at www.barneywatson.com.
