Sales: According to the Lake Martin Area Association of Realtors, waterfront-area residential sales totaled 27 units during December, up 68.8% from the same month a year earlier. Results were up 58.8% from the previous month, with 17 units sold in November 2019, and 43.6% above the five-year average of 19 closed transactions.
For all waterfront-area home sales data, click here.
Inventory: Homes listed for sale in the waterfront area during December totaled 182 units, a decrease of 4.2% from December 2018’s 190 units and a decrease of 10.8% from November 2019’s 204 units.
Pricing: The Lake Martin waterfront median sales price in December was $598,333, a decrease of 15.1% from one year ago and an increase of 66.2% from the prior month. This direction is consistent with historical data (2014-18) indicating that the December median sales price on average increases 13% from November. The differing sample size (number of residential sales of comparative months) can contribute to statistical volatility, including pricing. ACRE recommends consulting with a local real estate professional to discuss pricing, as it will vary from neighborhood to neighborhood. The average number of days spent on the market (DOM) by waterfront homes that sold during December was 165 days, a decrease of 21.8% from 211 days in December 2018 and a decrease of 34% from 250 days in November 2019.
Forecast: December sales were 11 units, or 68.8%, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 16 sales for the month and actual sales were 27 units. ACRE forecast a total of 288 residential sales in the waterfront area in 2019, while there were 369 actual sales.
ACRE’s statewide perspective: Residential sales growth continued in November but at a slower pace, as total residential sales increased 0.8% year-over-year from 4,598 to 4,635 closed transactions. Year-to-date, sales are up 4.2% from 2018, a record year for residential sales. Home price appreciation in the state continued to climb as the median sales price in November increased 9.3% year-over-year, marking 25 consecutive months of gains. The statewide median sales price is up 5.8% year-to-date. While properties listed for sale nationwide decreased 5.7% year-over-year, Alabama’s residential listings continued to tighten, decreasing 10.5% from one year ago. Low inventory levels were a significant factor contributing to rising sales prices throughout 2018 and continued into the fourth quarter of 2019. With low inventory levels, it is not surprising to see homes selling at a slightly quicker pace than one year ago. Homes selling in Alabama during November spent an average of 92 days on the market, a decrease of one day from November 2018.
NAR’s national perspective: Existing-home sales declined slightly in November, decreasing 0.5% year-over-year from approximately 406,000 closed transactions one year ago to 402,000 currently. The nationwide median existing-home price increased 5.4% in November, marking 93 consecutive months of year-over-year gains. Lawrence Yun, chief economist for the National Association of Realtors, said, “Sales will be choppy when inventory levels are low, but the economy is otherwise performing well, with more than 2 million job gains in the past year.” Properties listed for sale nationwide declined 5.7% in November from approximately 1.74 million listings one year ago to 1.64 million currently.
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The Lake Martin Waterfront Residential Monthly Report is developed in conjunction with the Lake Martin Area Association of Realtors to better serve area consumers.