There is a lot of excitement in Russell Lands On Lake Martin neighborhoods about new homes. Over the past few years, we have seen new homes in Willow Glynn, the Russell Cabins at The Ridge and in The Ridge have sold at a fairly brisk pace. The excitement comes from new lake home designs, updated décor and exciting new lot selection.
Lots of people are tempted to upgrade to a new lake place, but wonder if that is possible in today’s market. The answer is there might never be a better time to sell your old lake place! At the risk of sounding like we are stating the obvious, if you are thinking about trading up to a better place, selling what you have quickly—and for more money—makes it easier.
Sales Are Brisk
Why is now a good time to sell your lake place? Well, let’s look at some fundamentals. This past year, the overall sales volume for single-family homes was up 47.2% over 2014. The total number sold was up 34.2% over 2014. And, most importantly, the average sales price for a single family home on Lake Martin was up 11.4% over 2014!
So, many more are selling—for much higher average prices—so that means that it must be a good time to sell, right? One would have to examine what the chances of selling might be in today’s market. So what is the competitive situation today?
Inventory is Low
You might worry if there are too many houses for sale. Let’s take a look at one particular price category. The average price on Lake Martin for the 12 months ending January 31, 2016 was $566,160. A quick study of the number of available properties for sale in the $500,000 to $599,999 price range (performed on 2-24-16) showed 25 properties for sale in that price range.
Looking back over the last year, we discovered that 35 properties listed in that same price range sold. That means that we only have enough properties listed to last just eight months. And we are just about to start the sales season! If we stay even with last year, the 25 properties for sale (assuming they are correctly priced) have a near 100 percent chance of selling! Seems like a great situation.
Rates Are Great
Most people think that when the Federal Reserve raised the interest rate .25% that all rates were going up. The opposite has occurred. Mortgage rates are tied closely to the yield on the 10 year U.S. Treasury rate. Since the Fed decision, the yield and mortgage rates have dropped roughly a quarter of a point to near historic lows.
So what does this all mean? Newer and better homes, located in great neighborhoods are for sale. Your current lake place is worth more and likely capable of selling this year. Interest rates are very low which help to bridge the difference. Sounds like it might be a good time to move.
Find out how much selling and buying power you have in today’s market. Our Sales Executives are ready to help you determine if now is a good time to
move up! Call them today at 256.215.7011.
