In an economy where there seems to be very few “good” investments, Lake Martin appears to be a safe bet. Check that—a great bet—especially for those who bought in the last several years. Lake Martin values have increased so much that even Hedge Fund gurus would be pleased with property value increases over the last 12 months.
According to local Multiple Listing Service sales statistics for waterfront properties, values are enjoying a double digit increase. The sales for the last 12-month period ending in July have seen significant price increases over the same 12-month reporting period in 2014 (also known as a 12-month rolling average analysis).
This past year, the average sales price for a residential property on Lake Martin increased 16.8% to $419,977 per transaction. There are two different categories of residential lakefront properties, single-family detached and condos/townhomes. Both experienced increases. For Single-family detached properties (houses), the increase was 13.6% to $548,414 per transaction! For condominium or townhouse properties, the increases were even more impressive with a whopping 22.6% increase in average price, up to $269,066 per transaction.
Price increases are up across the board. For those willing to buy a lot, design a lake home and hire a contractor, the average lot price increased as well. The average sale price for waterfront lots was impressive as well, with an increase in price of 10.9%.
Overall market growth impressive
For the 12-month period ending July 31, 2015, gross sales volume for residential waterfront properties (including townhomes and condos) increased 32.6 % over the previous year. Single-family properties (detached homes) were an even more impressive with a gross dollar sales increase of 34.2%.
Overall residential transactions have increased to 328 properties sold for the last year, compared to 289 for the year before, or a 13.5% increase. Single-family detached properties outpaced condos and townhomes with an 18.2% increase year over year.
Waterfront lots have seen the most impressive increases, given smaller inventory levels. Overall dollar volume of for building sites has increased 52.3%, and the number of units sold increased 37.3%!!!
Market predictions
We expect, given reductions in available standing inventory, that average prices will continue to rise over the next year. The available inventory has dropped 16%, while the number of property sales has increased by 13.5%. As basic supply and demand principles dictate, a lower supply with increased demand, prices will certainly rise.
Verbal reports from Realtors® indicate property showings have not tapered off. Newly pended sales reports indicate the next several months will continue to be impressive. We predict fewer choices of standing inventory, and new construction of speculative homes is not sufficient to keep up with demand. Therefore, we think the HOT streak like the HOT weather will last a while longer.
We make it a priority to keep abreast of sales data for Lake Martin real estate. Please look for regular reports from us here in
Explorer.
09.2015
