Lake Gaston Real Estate Update Year End 2016

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 8^th 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

Lake Gaston Real Estate Update End of Nov 2016 RE/MAX Broker Barney Watson

I read about a recent home sales study done over 4 years. It looked at over 7 million home sales and the season of year the home listed. The study revealed: a listing’s season might decide whether the home will sell for more than the asking price and how fast the sale will close.

It’s no surprise that listing a home for sale during the spring saw the largest return, as spring is traditionally the busiest month for real estate. What was surprising, though, is that listing a home during the winter came in second!

The study stated, “Among spring listings, 18.7 percent of homes fetched above asking, with winter listings not far behind at 17.5 percent. While 48.0 percent of homes listed in spring sold within 30 days, 46.2 percent of homes in winter did the same.”

The study went on to say, “Buyers (in the winter) often need to move, so they’re much less likely to make a lowball offer and they’ll often want to close quickly – two things that can make the sale much smoother.”

Note: The study used the astronomical seasons to determine which season the listing date fell into (Winter: Dec. 21 – Mar. 20; Spring: March. 21 – June 20; Summer: June 21 – Sept 21; Autumn: Sept 21 – Dec. 20)

Bottom Line: If you are debating listing your Lake Gaston home for sale within the next 6 months, keep in mind that the spring is when most other homeowners will decide to list their homes as well. There is more competition in the spring.  If you’ve been thinking of selling your Lake Gaston property, listing it this winter will ensure that you have the best exposure to the serious buyers who are out looking now! We have been very active with potential buyers this fall despite low inventory levels in some price ranges. Lake Gaston Realtors® do not stop working at the end of the summer, we help buyers and sellers all year long!

Here we are, almost to the end of 2016, and you can see just how busy we’ve been. Through November we have closed on 207 waterfront homes averaging $401,928 each, totaling $83,199,154 compared to sales of $75,253,200 in the same period in 2015.  A modest increase of 10.56% in dollar volume and 15.0% increase in unit sales of waterfront homes.  

Offshore home sales remain seemingly flat with 105 closed through November averaging $106,404 each, totaling $11,172,467. This category is down 2.4% in dollar volume over the same period in 2015 and it remains unchanged in unit sales.  

Waterfront homes represent 81.5% of our total dollar sales and Offshore homes represents 10.9% of our total sales in the four quads of Lake Gaston.

Lot sales remain slow at the lake, 37 waterfront lots have closed at an average sales price of $149,814.  We have also closed on 30 Offshore lots averaging $16,746 each.

Our closed transactions in the Lake Gaston market through November total $102,023,735. That’s an increase of 9.62% over 2015 sales in the same period which totaled $93,066,613.  

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

“Consumer confidence improved in November after a moderate decline in October, and is once again at prerecession levels,” said Lynn Franco, Director of Economic Indicators at The Conference Board.  “A more favorable assessment of current conditions coupled with a more optimistic short-term outlook helped boost confidence. And while most consumers were surveyed before the presidential election, it appears from the small sample of post-election responses that consumers’ optimism was not impacted by the outcome. With the holiday season upon us, a more confident consumer should be welcome news for retailers.” 

The Conference Board Consumer Confidence Index®, which had declined in October, increased significantly in November. The Index now stands at 107.1, up from 100.8 in October.

The National Association of REALTORS® (NAR) announced Nationally Pending Home Sales in October were up 0.1% and Existing Home Sales were up a strong 2.0%. NAR contributes the increase to improving consumer confidence levels as well as job and wage growth.  NAR also estimates sales have been lagging due to low housing inventories.

Per REALTOR®.com, the 2017 national real estate market is predicted to slow compared to the last two years, across most economic indicators. Home prices are anticipated to increase slightly and existing home sales are forecasted to increase 1.9 percent to 5.46 million homes. Interest rates are expected to reach 4.5 percent due to higher expectations for inflationary pressure in the year ahead.  Next year, the prediction is the housing market will be dominated by two demographic groups, millennials and baby boomers.  Baby boomers are expected to make up 30 percent of buyers in 2017 and given they’re less dependent on financing, they are anticipated to be more successful when it comes to closing.  Baby boomers tend to have an appetite for second-homes.

I don’t have a crystal ball but I am very optimistic about the Lake Gaston Real Estate Market continuing to be strong as we finish 2016 and head into the New Year.

I would like to wish everyone a very Merry Christmas, Happy Hanukkah, and a wonderful New Year!

Barney Watson is Managing Partner with RE/MAX On The Lake and 2016/2017 MLS President of the Roanoke Valley Lake Gaston Board of REALTORS®. His cell: 252-532-3274 and web: Lake Gaston Real Estate RE/MAX Broker Barney Watson

Lake Gaston Real Estate Broker Barney Watson (RE/MAX ON THE LAKE)

Lake Gaston Real Estate Market Update End of Oct 2016

I was thinking about how we “Fall Back” this time of the year when we adjust our clocks for Daylight Savings Time and what difference does an hour make in the real estate market? The answer is that every hour in the United States 633 homes sell, 253 homes regain positive equity and Median Home Values Go Up $1.43? An hour makes a huge difference in the real estate market.

From hours to months for the local real estate market: Let’s look at the first ten months of 2016 for the Lake Gaston real estate market. Busy and productive describe it best. We have completed the sales of 187 waterfront homes, 97 offshore homes, 36 waterfront lots and 29 offshore lots totaling $92,694,385.  In the same ten months of 2015 our total sales were $86,323,213. Our overall dollar sales increase for the year is a modest 7.38% over last year and our unit increase for land and homes is 10.22%. 

Waterfront homes, the largest part of the increase in 2016, is up 6.06% over 2015. Waterfront homes represent 81% of our total sales in 2016. Our average days on market in 2016 for waterfront homes is up slightly to 219.  Days on market are the days between when the property first goes onto the market until closing, which includes about 45 to 60 days after the property goes under contract.

All sales statistics are from the Roanoke Valley Lake Gaston Board of REALTORS® Multiple Listing Service (MLS). 

The National Association of REALTORS (NAR) reported Existing Home Sales and Pending Home Sales increased slightly in September.  NAR predicts an increase of 2% in both Existing and Pending Homes Sales for 2017.  They site inventory shortage in some markets will hold back sales.  We are also short quality inventory here at the lake in some price ranges. 

The Conference Board Consumer Confidence Index, which had increased in September, declined in October. The Index now stands at 98.6, down from 103.5 in September.  “Consumer confidence retreated in October, after back-to-back monthly gains,” said Lynn Franco, Director of Economic Indicators at The Conference Board. “Consumers’ assessment of current business and employment conditions softened, while optimism regarding the short-term outlook retreated somewhat. However, consumers’ expectations regarding their income prospects in the coming months were relatively unchanged. Overall, sentiment is that the economy will continue to expand in the near-term, but at a moderate pace.” 

Buyer activity continues to be strong going into the fall season. We believe 2017 will be another strong year in the Lake Gaston real estate market.

Barney Watson is Managing Partner with RE/MAX On The Lake and 2016 MLS President of the Roanoke Valley Lake Gaston Board of REALTORS®. His cell: 252-532-3274 and web:www.barneywatson.com