Lake Gaston Real Estate Update End of Sept 2017

Lake Gaston Real Estate Market Update

By: Barney Watson – Owner Broker / REALTOR® -  RE/MAX On The Lake

Good-bye summer and hello fall! Finally, this week, we got a taste of cooler weather rolling in making it easier to say good-bye to summer and hello fall. Yesterday I was looking out across the lake and could see the leaves are just beginning to turn. Soon they will become multicolored works of art reflecting on Lake Gaston. How blessed we are to witness this beauty.

Lake Gaston REALTORS® have not slowed down much since saying good-bye to summer. In the first nine months of this year we have closed on 198 waterfront homes totaling $86.1M, an increase of 35.92% in dollar sales over the same nine months of 2016.  Offshore homes have been selling as well with 95 closed transactions totaling $11.3M, an increase of 24.95% in dollars sales. Waterfront lots continue to increase as well with 46 sold totaling $6.3M, an increase of 20.31% in dollar sales.

The average waterfront home has sold for $434,721 this year and offshore homes have averaged $118,903. Waterfront lots have averaged $137,080 in 2017.

Our total market, land and homes in the first nine months of this year have totaled $104.2M verses $79.6M for the same period in 2016, an increase of 30.86%.

On 9/30/2017 there were 248 active residential home listings. That number includes waterfront and offshore properties. Compare that to 298, for the same period in 2016, equals a decrease of 17% in available home listings in the Lake Gaston area. The average days on market (DOM) for waterfront homes in 2017 is 199 verses 220 in 2016, a decrease of 9.6%.

So, we have an average of 17% fewer homes on the market with homes selling in 9.6% fewer days than just one year ago.

Applying the law of supply and demand to this information, you’d think that prices would be increasing, on average they have. Statistics show the average waterfront home sold price is up 9.8% in 2017 over the same nine months of 2016. With sales prices up, buyers are cautious about overpaying.  Remember, second homes / vacation homes are a want not a need and usually when a property goes under contract there is an appraisal involved.  If the property does not appraise for the contract price, the buyer walks away.

All sales statistics are from the Roanoke Valley Lake Gaston Board of REALTORS® Multiple Listing Service (MLS) and do not reflect private sales.

The National Association of REALTORS (NAR) reported Existing Home Sales across the United States are down 1.5% from a year ago. NAR also reports pending homes sales, properties under contract and not yet closed are down 2.6%. They site inventory shortage in most markets are holding back sales.  We are also short quality inventory here at the lake in some price ranges.

The Conference Board Consumer Confidence Index^®, which had improved marginally in August, declined slightly in September. The Index now stands at 119.8, down from 120.4 in August.  Despite the slight downtick in confidence, consumers’ assessment of current conditions remains quite favorable and their expectations for the short-term suggest the economy will continue to expand.

I feel certain at the end of 2017 we will say, “It has been another great year for the Lake Gaston real estate market.”

Barney Watson is Owner Broker/ REALTOR® of RE/MAX On The Lake and 2017 MLS President of the Roanoke Valley Lake Gaston Board of REALTORS®. His cell: 252-532-3274 and web: www.barneywatson.com.

Lake Gaston Real Estate Update End of June 2017

As I have said before, “Lake Gaston is the ideal place for a perfect summertime lake experience. Real estate showings to vacationers is increasing. It is hard to say good-bye once you have fallen in love! That is how many of us locals, myself included, came to call Lake Gaston home.”

In the first half of 2017 we have closed on 117 waterfront homes averaging $439,810 each verses 94 in the same six months last year, an increase of 41.45% as measured in dollar sales.  Offshore home sales have increased sharply as well up 21.14% over 2016 sales with 49 sold averaging $116,663 each.  Waterfront lot sales continue their downtrend with 22 sold in 2017 at an average sales price of $133,932.  Total land and home sales in the Lake Gaston market for the first six months of this year are $60,514,080 versus $45,843,152 in the same period of 2016 or up 32.0%.

All statistics are from the Roanoke Valley Lake Gaston Board of REALTORS® Multiple Listing Service (MLS) and do not include private sales.

The National Association of REALTORS (NAR) reports pending home sales, homes going under contract but not yet closed, slipped 0.8% in May and is 1.7% below the level a year ago.  Lawrence Yun, NAR chief economist, says it's clear the critically low inventory levels in much of the country somewhat sidetracked the housing market this spring. “Monthly closings have recently been oscillating back and forth, but this third consecutive decline in contract activity implies a possible topping off in sales," he said. "Buyer interest is solid, but there is just not enough supply to satisfy demand. Prospective buyers are being sidelined by both limited choices and home prices that are climbing too fast."

My Lake Gaston Pending Waterfront Home Index shows 130 waterfront homes went under contract in the first half of 2017 versus 126 in the same period of 2016.  Buyer activity in the Lake Gaston market is good, lack of inventory in certain price levels is holding back sales slightly. 

NAR also reports existing home sales, which are completed transactions that include single-family homes, town-homes, and condominiums, climbed 1.1 percent in May.  The median existing-home price for all housing types across the United States in May was $252,800. This surpasses last June ($247,600) as the new peak median sales price, is up 5.8 percent from May 2016 ($238,900) and marks the 63rd straight month of year-over-year gains.  The median home (waterfront and offshore) sold in the Lake Gaston market in the first half of this year was $311,000.

The Consumer Confidence Index®, which had decreased in May, increased moderately in June. The current Consumer Confidence Index® stands at 118.9, up from 117.6 in May.  Overall, consumers anticipate the economy will continue expanding in the months ahead, but they do not foresee the pace of growth accelerating. 

  

Now is a great time to list your property if you have been thinking about selling.  Buyer activity is strong, we are lacking quality inventory in some price ranges and interest rates are still at historically low levels.  If you are thinking of selling; you should contact a full-time, experienced REALTOR® and get sales statistics and current market conditions in writing before deciding.  Homes priced correctly the first time and in good condition should go under contract within the first 30 to 45 days after going on the market.  You may also consider having inspections completed before listing your home so there are no surprises after your property is under contract.  Usual recommendations include: Home, radon, septic, and termite inspections.

Lake Gaston’s current economy is good; we continue steady growth. We expect buyer activity and real estate sales to remain strong going into the second half of 2017.

Barney Watson is Broker-In-Charge at RE/MAX On The Lake and 2017 President of the Roanoke Valley Lake Gaston Board of REALTORS® MLS. His cell: 252-532-3274 and web: www.barneywatson.com