By: Brian Davis
Click here to view or print the entire September report compliments of the ACRE Corporate Cabinet.
Sales: Waterfront sales on Lake Martin totaled 37 units in September. Though the same number as the month prior, sales in September soared by 42 percent compared to last year, which established a new peak for the month. Year-to-date sales through September are up 23.7 percent from 2014.
Supply: The Lake Martin waterfront inventory in September was 309 units, a decrease of 10.7 percent from September 2014 and 45.3 percent below (this is good news) the month of September peak in 2008 (565 units). September inventory fell 12 percent from the prior month. This direction is consistent with historical data indicating that September inventory on average (2010-14) decreases from the month of August by 3.9 percent. There were 8.4 months of housing supply in September, a favorable decrease of 73.7 percent from the September peak in 2010 (31.8 months of supply).
Demand: September waterfront sale remained unchanged from August. This direction contrast with historical data that indicates September sales, on average (2010-14), decrease by 27.6 percent from the month of August.
Pricing: The Lake Martin waterfront median sales price in September was $390,000, an increase of 20.6 percent from September 2014 and 2.6 percent above the prior month. This direction is consistent with historical data indicating that the September median sales price on average (2010-14) increases 4.3 percent from the month of August. Pricing can & will fluctuate from month-to-month due to the changing sample size of data (closed transactions) being subject to seasonal buying patterns. A broader lens as to pricing trends is appropriate and we highly recommend contacting a local real estate professional for additional market pricing information.
Industry Perspective: Steve Arnsberg, Vice President of Residential Sales with Russell Lands at Lake Martin: “We expect, given the very attractive interest rates coupled with reduced inventory, that the future will see more new construction. Recent additions at The Ridge and the new Cedar Point development are well timed to provide needed inventory to meet demand for Lake Martin waterfront homes. The reset in the list price to sales price ratio will continue for the foreseeable future. While the increase in property values is impressive, prices are still well below peak values of the mid-2000’s.