Lake Gaston Real Estate Market Update - End of June 2013

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 50^th 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

Lake Gaston Real Estate Update - End of Sept

The news about the economy and housing is confusing but remains positive.  The Pending Home Sales Index declined 2.6 percent in August over July.  The data, compiled by The National Association of REALTORS, reflects properties under contract but not closed. 

The housing market is “The lone bright spot in the economy.” That is according to The September UCLA Anderson Forecast, a new economic report just released. Low interest rates, slightly increased sales prices and reports of a steady economy are helping.

The Federal Housing Finance Agency reports that US home prices have increased 3.7 percent from a year ago.  S&P/Case-Shiller released a report also showing home prices on the rise for the fourth consecutive month. They are at their highest levels in nearly two years.  They report home prices in their 20 major city index are up 1.2 percent compared to a year earlier.  According to the Zillow Home Value Index home values have declined 0.1 percent in August from July but up 1.7 percent from August 2011. 

According to Fiserv, an analytics firm, home prices still have a long way to go before returning to the peaks experienced during the housing boom.  In a recent report, they explained that from 2007 to 2012, home prices nationwide fell by a third on average.  Home prices are rising now and many economists predict continuance. However, Fiserv’s projecting we may not return to peak levels until 2023, if then.

For the Lake Gaston real estate market; in September 2012 we closed 17 waterfront homes, 12 off-shore homes, 3 waterfront lots and 1 off-shore lot for a total value of $8,274,750 compared to 18 total properties in September of last year for a total value of $3,660,004.   Our overall sales (lots and homes) total 226 units and $58,569,715 for the first nine months of 2012 compared to 173 units and $53,065,871 in the first nine months of 2011 or an increase of 10.4% in sales dollars and a 30.6% increase in units.  To put these numbers in perspective, the first nine months of 2008 we experienced closed sales of $74,067,882 and in 2007 the same period yielded $103,061,740 in sales.  We currently have 19 waterfront homes under contract, waiting to close, along with 9 off-shore homes and 7 waterfront lots. All of these sales numbers are from our Multiple Listing Service and do not reflect private sales which will have minimum impact.

Moving Forward

After the Presidential Election, the cloud of confusion over the housing market should drop. Some surveys say as many as twenty-five percent of Americans are holding off on major buys until they know who will hold the President-elect position.

As employment strengthens so should the housing market.  A huge part of our recovery relies on folks getting mortgage approval. With the new Dodd-Frank Wall Street Reform Act banks and financial institutions are, to some degree, paralyzed.  Regulators are forcing banks to increase capital requirements and urging them to reduce risks.  For banks to sell their loans in the secondary market, the loans must meet the new requirements.  Banks who lend without meeting the new requirements risk having to buy back their loans from Fannie or Freddie.  One banker stated “We don’t process a loan for credit anymore: we process the loan for Dodd-Frank compliance.”

There is no doubt the mortgage industry needed different regulation.  One could say our industry received a cleansing, by reducing (or eliminating) the abusive lenders in the subprime market.  The housing collapse has definitely created awareness.  We are seeing better quality lenders, REALTORS, appraisers and people that are more conscientious.

Barney Watson with RE/MAX On The Lake and can be reached at 252-532-3274 or www.barneywatson.com

Lake Gaston Real Estate Update

The news about the economy and housing remains positive.  The National Association of REALTORS reports the Pending Home Sales Index rose 2.4 percent in July over June.  The data reflects properties under contract but not closed.  The index is at the highest level since April 2010.  This marks the fifteenth consecutive month of improvement in contract activity.

The National Association of Homebuilders also reports their builder sentiment index increased two points to its highest level since March 2007.  Across America consumers appear upbeat and are investing in their homes. Home Depot the nation’s largest home improvement retailer reports; sales of paint, bathroom accessories and kitchen installations helped improve their net income in the second quarter by 12 percent.

According to the Commerce Department new home sales in the United States rose 3.6 percent in July. This matched a two-year high reached earlier this year and it is the latest sign of a steady recovery in the housing market. This news and the improving employment numbers are great for the economy. Though new homes represent only a small portion of the overall housing market, they have a disproportionate impact on the job market.  The National Association of Home Builders statistics show: Each new home built creates an average of three jobs for a year and produces about $90,000 in tax revenue.

For the Lake Gaston real estate market; we had 32 waterfront homes close in August for a total value of $7,642,790 compared to 37 in August of last year for a total value of $11,191,867.  We had 7 offshore homes close this August compared to 8 in August of 2011.  Waterfront lot sales are increasing.  The first eight months of 2012 we have closed on 33 waterfront lots compared to 14 in 2011.  Our overall sales (lots and homes) total $49,763,465 for the first eight months of 2012 compared to $49,405,867 in the first eight months of 2011 or an increase of 0.7%.  To put these numbers in perspective, the first eight months of 2007 we experienced closed sales of $91,928,326.  We mentioned pending sales earlier in the article.  We currently have 29 waterfront homes under contract, waiting to close, along with 16 off-shore homes and 11 waterfront lots. All of these sales numbers are from our Multiple Listing Service and do not reflect private sales which will have minimum impact.

We are seeing new home construction of custom-built homes over the entire Lake Gaston area.  A decreasing inventory of quality pre-owned homes and an increase of waterfront lot sales adds up to buyers opting to build in order to get their dream home.

Now is a great time to buy or sell in the Lake Gaston area.  When selling, remember to price your property correctly the first time. Buyers are looking for a good value, a property priced according to the current market conditions.  The economy is improving and consumer confidence is increasing. We are starting to see buyers that were on the sidelines are coming forth searching for their vacation or investment property.  Remember if you buy and sell property in the same type of market you will win every time.  

You can reach Barney at http://www.barneywatson.com or email: barney@barneywatson.com