Last year is in
the history books, ending a busy year for the real estate market in the Lake
Gaston area. In 2016 we closed 222
waterfront home transactions, average of $405,146 each totaling $89,942,487 or
an increase of 10.35% over 2015 sales just in waterfront homes. Offshore homes showed a slight decrease of 1.98%
over 2015 with 112 closed, averaging $107,173 each totaling $12,003,367.
Waterfront lot sales showed a slight decrease with 42 sold, averaging $140,622
each totaling $5,906,125. Offshore lots
sales increased 62.21% from 2015 levels averaging $16,012 each. Total homes and land (lots) all firms all
around the lake closed 416 transactions totaling $109,965,968, an increase of 8.91%
above the same period in 2015.
Sales numbers
are from the Roanoke Valley Lake Gaston Board of REALTORS Multiple Listing
Service (MLS) and do not include private sales.
The
Conference Board Consumer Confidence Index®, which had
increased in November, posted another gain in December, standing at 113.7, up
from 109.4 in November. “Consumer
Confidence improved further in December, due solely to increasing Expectations
which hit a 13-year high,” said Lynn Franco, Director of Economic Indicators at
The Conference Board. “The postelection surge in optimism for the economy, jobs
and income prospects, as well as for stock prices which reached a 13-year high,
was most pronounced among older consumers. Consumers’ assessment of current
conditions, which declined, still suggests that economic growth continued
through the final months of 2016. Looking ahead to 2017, consumers’ continued
optimism will depend on whether or not their expectations are realized.”
Across
the country, The National Association of REALTORS (NAR) reports existing homes
sales rose 0.7% in November which is now the highest level since February
2007. "The
healthiest job market since the Great Recession and the anticipation of some
buyers to close on a home before mortgage rates accurately rose from their
historically low level have combined to drive sales higher in recent
months," says Lawrence Yun, NAR chief
economist. The Pending Home Sales Index,* a
forward-looking indicator based on contract signings, declined 2.5 percent to
107.3 in November from 110.0 in October.
The economist credit this to the sharp rise in interest rates postelection
and a shortage of available inventory in some markets.
In the Lake Gaston area we had 17 waterfront homes go
under contract in December versus 7 in December last year. Despite or low inventory levels in certain
price ranges we continue to see potential buyer activity. Listing your home in
the winter months will attract the serious buyers with less competition from
other properties.
How will the
Trump Administration affect the U.S. Housing Market? Since the election, we
have seen an increase of roughly one-half percent in 30-year fixed rate
mortgages. The average rate now is
slightly over 4%. I think this will
affect the first-time home buyers more than those who move up or buy second
homes. I don’t believe a half point or so
rise in interest rates will have a negative impact on our secondary housing
market here at the lake. Since November
8th we have seen major indexes trading at record levels with the
S&P 500 up more than 5% and the Dow Jones Industrial Average rising 7.8%.
Is it overoptimism that President Elect Trump will usher in a new era of
economic boom; on the back of higher fiscal spending and pro-growth policies?
We will wait and see.
Still optimistic
about 2017, I believe we will continue to grow in the real estate market as
well as the overall economy of the lake area.
Barney Watson
is Managing Partner with RE/MAX On The Lake and he is 2017 President of the
Roanoke Valley Lake Gaston Board of REALTORS® Multiple Listing Service. His
cell: 252-532-3274 and website is www.barneywatson.com
More information: http://onlakegaston.com/barney-watson-broker.html
