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Community
 Is your lake half empty or half full?
A perspective on values
by Steven Arnberg
A few years ago, we were enjoying unprecedented appreciation for properties on Lake Martin. Residents would ask how prices were going and if property was still moving. Prices were shooting up so fast my standard response was, “Every day is a new adventure.”
Residents still ask about the market — over the winter months of 2008-09, prices were falling and the sales chart turned downward. When people asked if property was moving, the standard response remained appropriate, “Every day is a new adventure.”
Signs of financial stability and economic recovery are evident to many and everyone is wondering what letter of the alphabet the recovery looks like. Is it a “U”, a “V” or is it a “W”? Honestly, no one knows, but can surmise, due to recent sales activity, that things are definitely looking up.
Recent statistics compiled by the University of Alabama Center for Real Estate, http://acre.cba.ua.edu/, support this. Compared to last summer, we are in much better shape. In June of 2008, there were 814 properties for sale on Lake Martin or a 42.8 month supply. In June of 2009, we had a supply of 765 properties for sale, but because of a 46.15% increase in sales activity, the supply dropped to 15.6 months. Equally impressive, during that same period, the average sales price actually increased over June 2009.
In July, inventory dropped from 811 to 711 units and supply dropped from 31.2 months to 18.7 months. The resulting good news is that the supply of property for sale is heading back down to a pre-bubble level of 12 months. Basic economics teaches us that when supply and demand meet, prices tend to move up. I believe we are close to that level of equilibrium.
We have recently sold more than 20 new properties within our developments. One often mentioned motivation for buyers included the addition of Catherine’s Market and SpringHouse Restaurant and the ongoing development and activities at Russell Crossroads. Many people have observed that while other developers have paused (or worse, ceased) development, Russell Lands has continued to add valuable amenities and maintain a very high level of care within its neighborhoods.
The market is definitely improving. And, while we may not be able to bank on significant price increases to our real estate portfolio in the short term, one thing is sure, your safest real estate investment is still at Russell Lands On Lake Martin.
New pricing and quality lake inventory is still available. For the latest information related to pricing and availability at Russell Lands On Lake Martin, stop by the Discovery Center at Russell Crossroads, visit us online at www.russelllandsonlakemartin.com/communities/visit/ or call (256) 215-7011.
Featured Home: 131 Laurel Ridge
The Ridge, Phase 2, Lot 71
Absolutely beautiful custom lake home perfectly situated on a gently sloping lot with deep water.
With two masters — one on each level, two kitchens, large outdoor flagstone patios and an outdoor fireplace, this home easily handles large gatherings but still retains a warm and cozy feel. When you walk in, you'll feel right at home!
Price: $1,325,000
Contact one of our dedicated sales executives at 256-215-7011.
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