Lake
Gaston Real Estate Market Update:
Summertime
is in full swing at Lake Gaston.
Property owners are enjoying the hot weather on the lake as well as
folks spending their well-deserved vacations.
The “Splash” celebration drew a large crowd at Morningstar Marina on the
22nd celebrating Lake Gaston’s 50th birthday.
In June, we closed 29 properties which
included 14 waterfront homes, 11 offshore homes, 2 waterfront lots and 2
offshore lots. Together the closings totaled of $6,634,315 compared to 35 properties
closed in June of 2012 for $9,631,250.
Our sales through June are $41,306,805 compared to sales to the first
six months of 2012 totaling $34,072,500.
Since the beginning of the year, consumer
outlook is more positive about current business and labor market conditions. Expectations
have improved, suggesting the pace of growth is unlikely to slow in the
short-term, possibly even picking up moderately. The Conference Board Consumer Confidence Index®,
which had improved in May, standing at 74.3, increased again in June. Currently,
the index figure is 81.4. The standard index, fixed in 1985 is 100. The Present
Situation Index increased to 69.2 from 64.8. The Expectations Index improved to
89.5 from 80.6 last month.
Existing Home Sales and Pending Home Sales across the country continue to
show improvement according the National Association of REALTORS (NAR).
Existing-home sales are at the highest level since November 2009 when the
market jumped to 5.44 million as buyers took advantage of tax stimulus. Sales
have stayed above year-ago levels for 23 months, while the national median
price shows 15 consecutive months of year-over-year increases. The Pending Home Sales Index, a
forward-looking indicator based on contract signings, increased 6.7 percent to
112.3 in May. That figure is 12.1 percent above May 2012. The data reflect
contracts but not closings. Contract
activity is at the strongest pace since December 2006 when it reached 112.8;
pending sales have been above year-ago levels for the past 25 months.
As the economy recovers, second-home markets are
improving. According to the National Association of Realtors, vacation-home
sales were up 10% in 2012 after falling 56% between 2006 and 2010. But the pace
of increase is well below the 17% gain in sales of primary homes last year. One reason: Buying a second home is a luxury.
"A vacation home is the ultimate discretionary purchase," says Paul
Bishop, Vice President of Research at the Realtors group.
The recent rise of interest rates may have an effect on
sales of vacation homes in the Lake Gaston area. We have experienced 30 year mortgage rates rising
from 3.75% to 4.5% and 15 year mortgage money go from 2.65% to 3.625%. Rates are expected to go higher.
Higher mortgage rates and indecision in the legislature about
tax reform could possibly slow down the housing market. We will continue to watch
the mortgage interest deduction, taxes of fees and transfer tax proposals. We
hope our representatives will reach a compromise favorable to all.
As stated by NAR, second-homes and vacation homes are a
discretionary purchase. We are marketing and selling a product folks do not
have to have.
We are optimistic 2013 will be a great year for property
sales in the Lake Gaston market.
Barney Watson with RE/MAX On The Lake can be reached at 252-532-3274 or Email: lakegaston1@gmail.com and on the web at: www.barneywatson.com and www.lakegastonrealestatencva.com
