Community & Real Estate
Values and sales move into positive territory

At the start of the year, we predicted that the market would surprise us this year. While much of the country has been experiencing tough times real estate wise, our market is showing movement into positive territory. The results for the first four months—what we call preseason—are recorded, and the positives are beginning to emerge. 

Our analysis of sales data, derived from the Lake Martin Area Association of Realtors MLS, shows positive signs in critical areas.  The first area reviewed was the macro view of total number of transactions and volume.  At first glance, this data was slightly lower than last year with four fewer transactions and roughly $1.5 million in total volume. 

While people like to look at the big picture, they really want to know, “What does that mean to me and my property?”  So we drilled a bit deeper and looked at the average and median sales prices.  The average sales price for a waterfront home (single family detached) was $480,697 for the first four months of last year. For the same period this year, the average was $490,690 or an increase of 2.08%.  The median price (where 50% of sales are either lower or 50% are higher in value) was $390,000 for 2010 and $400,000 for 2011.  That was a 2.56% increase over last year.  Given the national average of a 5.9% decrease in values, we are encouraged that a floor has been put under property values. 

Realtors, when asked about showings, report that there are more people interested in real estate at Lake Martin.  Traffic and showings are at higher levels than last year.  When considering the total volume of pending sales, their comments are proved.  While the closed sales volume was slightly off the pending sales volume, transactions under contract, due to close before the summer season, is up 144% over last year!

As you might expect, higher sales volumes should also result in lower inventory levels.  Since very few newly-built properties are entering the market, and that the “shadow inventory” seems to be over-stated for this area, one would expect lower inventory levels.  That is the case at Lake Martin.  There are 22 fewer units for sale or a 4.82% decrease from last year.  Eventually, this will result in fewer properties to select from.  As of now, there is a good selection, but with fewer new properties coming on line, choices may not be as plentiful when autumn arrives and summer sales drain inventory.

By the time May is over, the data on all major sales categories—total volume, total units, average price and median price—will all be higher than last year.  With inventory shrinking, values will continue to improve and stabilize.  For those that have been looking and hoping for clarity in the market, it looks like the future is both clearer and brighter at Lake Martin.  Keep watch on this column as we continue to track sales for Lake Martin waterfront properties through the summer months.