Community & Real Estate
Crystal ball: Lake Martin real estate predictions for 2011

The holidays have made the past several weeks pretty busy with all of the parties (and eating) related to them. Seeing folks just once per year usually limits conversation to weather, politics or sports. Invariably, those topics lose interest pretty quickly, so people involved in real estate can be pretty popular. Everyone wants to know what the market is doing and where it is going.

At Russell Lands, we are not as qualified to discuss the primary home market, which has been dominated by foreclosures, short-sales and tax credits. Our market knowledge is valuable as it relates to recreational real estate on Lake Martin. This type of real estate investment is supposed to be fun. So, to help you have fun this year, we wanted to give you information to either help you feel good about your current investment, or to give you information that may help you with a purchase you are currently considering at Russell Lands On Lake Martin.

Prediction #1 – Lake Martin’s market will be a pleasant surprise
We constantly monitor waterfront transactions to find useful information. Looking back at the past gives us a pretty good indication of what the future holds.

January of 2008 was the lowest ebb of the market downturn. This sales number was right after the drought and marked the beginning of the real estate crisis. Looking back, it is not surprising that sales plummeted, but thankfully, that has been followed by a slow but steady increase in the number of transactions and sales volume. The annualized increase is 23.3 percent higher in this period, with only one month (May of 2009) showing any slip in the steady rise. Given the past sales trends and improved economic outlook, the market is likely to continue its steady increase.

Prediction #2 – Inventory levels will drop
This will happen for two reasons. First, the sales rate has picked up as indicated above. The more properties that sell, the fewer there are for sale. At one point, there was a 55-month supply of waterfront property for sale on Lake Martin. The most recent supply has dropped to just 23.22 months. Second, there has been almost no new construction on Lake Martin. What little new construction is available is likely something being built in Russell Lands On Lake Martin neighborhoods, custom construction or a lender “work-out” program. Lower inventory levels will mean fewer choices and, at some point, a return to price appreciation.

Prediction #3 – Purchasers will seek quality first
The $292,900 median sales price makes Lake Martin the most valuable property in Alabama, according to the University of Alabama Center for Real Estate (http://acre.cba.ua.edu/housing_report.php). The properties that consistently outperform the rest of the lake are found in Russell Lands On Lake Martin neighborhoods. Why, you might ask? The top three answers are: 1.) the abundance and quality of the amenities, 2.) the quality of the properties within those neighborhoods, and 3.) the protective covenants and overall vision for the community. What has always been true will continue to be true. Customers who can afford the best will seek the best, which is found here in Russell Lands On Lake Martin.

Prediction #4 – Russell Lands will continue to offer new properties
While we predicted (above) that inventory levels would drop, partly due to the reduction of new construction, we will still be offering new, thoughtful designs in our neighborhoods. In fact, we will be offering new attractively-priced waterfront lots and homes this spring and summer. These offerings come with our assistance in site selection, architectural design and construction consultation.

Prediction #5 – People will have fun at
Russell Lands On Lake Martin this summer
This has always been, and always will be, true. In fact, it has never been more fun to be at Russell Lands On Lake Martin. More fun things are coming, so stay tuned to see which predictions come true!