Lake Gaston Real Estate Update End of August - Barney Watson RE/MAX On The Lake

Lake Gaston Real Estate Update - End of August: 

Summer slowly fades away and fall sneaks in bringing us cooler temperatures and the magnificent colors of fall. Fall is a great time for boating on Lake Gaston. Early in the season, the water temperature is still perfect for swimming, wake boarding and skiing. A leisurely boat ride is irresistible when the leaves are reflecting vibrant colors on the lake. Realtors® love showing property in the fall when we can show our lake in all of its color and beauty. 

Through July Lake Gaston, real estate sales and listings remain steady.  In August, we had closings on 19 waterfront homes, 15 offshore and 1 waterfront lot totaling $9,678,468.  In August last year, we closed 18 waterfront homes, 7 offshore homes, 4 waterfront lots and 4 offshore lots totaling $8,025,290.  In the first eight months of 2013 we have closed 219 transactions equaling $56,550,423 total. In the first eight months of 2012 there were 193 transactions equaling $50,294,965 total. This year we have an increase of 12.4% in sales dollars over the same time period last year.­­­­­­­­­

Compared to previous years, our dollar sales for the same eight months of 2011 were $49,405,867. In 2010, sales were $39,154,888 and in 2009 sales were $32,033,049.  In 2008, sales were $62,713,863 and in 2007 sales for the first eight months of the year totaled $91,928,326. The real estate market recovery is slow, but steady and we hope it will continue to improve.

The National Association of REALTORS (NAR) reports existing home sales nationwide were up 6.5% in July. NAR also reports pending home sales (contracts signed but not yet closed) were down 1.3% in July.

The Conference Board, a New York based private research group, said last week that its consumer confidence index rose to 81.5 in August.  This is up from 81 in July, just below 82.1 in June which was the highest since January 2008. After hitting the bottom at 25.3 at the depths of the “Great Recession” in February 2009, the index has bounced back but has yet to get back to the 90 reading that signals a healthy economy.

The recent situation with mortgage interest rates will be interesting.  The average 30 yr fixed rate has risen from 3.62% in March to 4.615$ in August.  The 10yr Treasury Note (leading indicator of mortgage rates) is currently yielding 2.89%. The 52 week low was 1.56% & the 52 week high was 3.01%. 

To put this increase into perspective, the average waterfront home on Lake Gaston has sold for $400,000. If the buyer makes a down payment of 20% and borrows $320,000 the principal and interest payment will be at $1,645 for 30 years at 4.625%. In March borrowing the same amount at 3.625% the payment would have been $1,459, roughly a $200 per month increase.

 

Lake Gaston real estate is still a great investment. Our market continues to grow and we are optimistic about the future. Lake Gaston Realtors® work year round, they are ready to show their clients the beauty of Lake Gaston in the fall. 

You can reach Barney at 252-532-3274 or on the web at www.barneywatson.com or lakegastonrealestatencva.com 

Lake Gaston Real Estate Market Update at the End of July 2013

Lake Gaston Real Estate Market Update: August is here, vacationers and homeowners are taking full advantage of the summer activities Lake Gaston has to offer.  The Crossing, sponsored by O’Sail, was a great success again this year.  The annual event is a charitable fund-raiser for them.  O’Sail provides arts, infrastructure and learning opportunities for Lake Gaston residents and visitors. You can read more about O’Sail on their website at http://osail.org.

Through July Lake Gaston, real estate sales and listings remain steady.  In the July, we had closings on 10 waterfront homes and 13 offshore homes totaling $4,731,150.  In July last year, we closed 23 transactions totaling $7,069,675.  In the first seven months of 2013 we have closed 182 transactions equaling $46,686,955 total. In the first seven months of 2012 there were 160 transactions equaling $42,289,675 total. When compared we see an increase of 10.5% in sales dollars this year.­­­­­­­­­

The real estate market at Lake Gaston is recovering.  I looked at our 2007 figures for the same seven months period and found we are 50.1% of the unit sales and 59.2% of the dollar sales. Our local market has room for improvement, but it is fair to say, “We have come a long way already.”

I find our Country’s economic news varied.  CoreLogic, a real estate data provider, stated last week that home prices climbed on annual basis in forty-eight states. Prices surged nearly 12 percent nationwide in June from a year earlier.  The Commerce Department reported that growth in the economy has slowed in the April - June quarter to a seasonally adjusted rate of just 1 percent.  This is below the sluggish pace of 1.8 percent in the January – March quarter.  The Conference Board, an NY based private research group reports its consumer confidence index dipped to 80.3 in July, which is down from 82.1 in June.  Unemployment remains high at 7.5 percent but has improved throughout the year.

Most economists say the economy already shows signs of improvement. They forecast growth rates of between 2 and 3 percent for the third and fourth quarters of the year. Recent data seems hopeful, overall hiring has sped up, home construction sales and prices show improvement. Manufacturing is benefiting from strong auto sales and business spending is increasing slightly. 

It is hard to estimate how the recent increase in interest rates will affect our property sales at Lake Gaston.  The rates remain at historically low levels.  I feel an increase in consumer confidence and improvement in employment numbers will boost our property sales and values. Like me, local Realtors® are optimistic about Lake Gaston’s economy. 

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 May 2013

Activity from visitors, vacationers and part-time lake residents has increased. That means summer is finally here! The Lake Gaston 50^th Birthday Splash Celebrations have begun.  Many events will take place around the lake all month. Visit www.osail.org for the current schedule of events. 

In May, we closed 16 waterfront homes, 10 offshore homes, 3 waterfront lots, 8 offshore lots and a 100-acre tract. Together the closings totaled of $8,599,820 compared to 29 parcels closed in May of 2012 for $7,585,900.  Our sales through May are $34,595,990 compared to sales for May 2012 for the same period of $24,441,250. 

We had strong potential buyer activity the first few months of this year then it weakened. Now we are busy showing properties and communicating with potential buyers again. Overall, we have experienced a strong increase, but keep in mind we are not experiencing a property boom. What we are seeing is recovery.   January through May sales increased 41.5%, compared to the same period in 2012. Sales are down 32% compared to the same period in 2007, which was after the “boom”.  

To put things in a little better perspective, the average waterfront home sold this year closed at $408,532.  The average waterfront home sold during the first five months of 2007 closed at $581,117.  The average in 2012 was $375,573.  The good part, we are heading in the right direction.

The National Association of REALTORS (NAR) believes the housing market is in a solid recovery. Despite tight credit and limited inventory in some markets, existing home sale nationally are at their highest pace since November 2009.  We continue to see foreclosures and short sales decrease, which should help stabilize prices. It seems mortgage rates may be increasing slightly; I hope this will not slow the forward momentum.    

The Consumer Confidence Index increased slightly in May to 76.2 from 69.0 in April.  Most economists believe consumer spending will increase 2.3% this year.  We heard today, the unemployment rate inched up to 7.6%.  Before consumer spending increases people need to feel good about the economy overall as well as their jobs.

According to NAR, vacation home sales were up 10.1% in 2012 nationwide. They predict a slight increase in 2013.  The recent gains in the stock market have stabilized investor’s net worth. We hope increasing consumer confidence will convince people that investing in a second home is good.

We are excited about the Lake Gaston real estate market in 2013.  We hope the increased activity will continue through the year in both residential and commercial growth.

Barney Watson with RE/MAX On The Lake can be reached at 252-532-3274 or lakegaston1@gmail.com. Website www.barneywatson.com