Lake Gaston Real Estate Market Update - End of February 2014
BY: BARNEY WATSON RE/MAX ON THE LAKE BROKER - REALTOR® - MANAGING PARTNER
The potential buyer activity
has been slow this year, I believe because of the unseasonable weather we have
experienced thus far. We’ve survived the winter and hoping spring is almost
here! We trust spring will usher in an
increase of buyers in search of property on Lake Gaston.
In the first two months of
this year, we have closed 32 transactions totaling $8,179,400 compared to 34
transactions in the same two months of 2013 totaling $10,247,630. This equates
to a 20.2% decrease. There were 12 waterfront homes sold this year compared to
18 sold in the first two months of 2012. Offshore home sales continue to
increase with 12 sold this year and only 6 sold in the same period in 2012. We
did experience a 96 acre waterfront parcel sold at the mouth of Mill Creek
close to the main lake. This parcel closed at $2,000,000. The new owner has
plans for a new waterfront subdivision on this land.
In January I mentioned
Homeowner Insurers in North Carolina have asked the State Insurance Commission
for a 35% increase in homeowner policies.
Wayne Godwin, the State Insurance Commissioner has expressed outrage
about the size of the requested increase which comes after a 7% increase in
policies that took effect in July of last year.
I will keep you posted on any news.
Interest rates continue at
their lows, 4.25%, for 30-year fixed and 3.25%, for 15-year fixed. We hope that
these low rates will contribute to a continued increase in second-home buyers
here at the lake. Mortgage funds are
available to buyers with good credit and steady employment.
Sales in 2013 totaled $86.5
million and sales in 2007 totaled $134.8 million, a decrease of 35.9%. It was interesting to discover the mortgage
rate for a 30-year loan in March 2007 was 6.16%. I think the bottom line is: an improvement in
our economy and improved consumer confidence has more to do with improved sales
in second-homes here at Lake Gaston than mortgage rates.
The National Association of
REALTORS (NAR) reported existing homes sales were down slightly and pending
homes sales remained virtually unchanged in January and February. NAR speculates this slow-down is due mostly
to the extreme winter weather most of the country has experienced.
Most economists believe we
will continue to experience positive momentum, which will fuel growth in the
housing market. As consumer confidence grows and with springtime here, we
should see more buyer activity and growth in the Lake Gaston area.
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| Lake Gaston taken by Lewis Fields on his way to work, crossing the Eaton's Ferry Bridge |
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| Lake Gaston - From Camp Willow Run |
