Sales: Lake Martin waterfront sales totaled 32 units during May, down 11.1 percent from one year ago. The 10-year peak for May waterfront sales was in 2017, when 36 units were sold, while the trough hit in 2008, with 15 units sold.
Forecast: May results were five units or 13.5 percent below the Alabama Center for Real Estate’smonthly forecast. ACRE projected a total of 126 waterfront sales through May, while there have been 113 actual sales.
Supply: The Lake Martin waterfront housing inventory in May was 272 listings, a decrease of 1.4 percent from the previous month and an increase of 1.1 percent from one year ago.
Pricing: The Lake Martin waterfront median sales price during May was $530,000, an increase of 15.2 percent from the previous month and an increase of 22.3 percent from one year ago. Pricing will fluctuate from month to month because of changing composition of actual sales (lakefront vs. non-lakefront) and the sample size of data (closed transactions) being subject to seasonal buying patterns. ACRE recommends contacting a local real estate professional for additional market pricing information.
Demand: April waterfront sales increased 33.3 percent from the previous month. This is consistent with historical data indicating that May sales on average (’13-’17) increase from April by 14.2 percent. Waterfront homes selling in May averaged 114 days on the market, representing a 53.8 percent improvement from one year ago. Waterfront homes on Lake Martin are selling 39.9 percent faster than the five-year May average of 190 days on the market.
Seeking balance: There were 8.5 months of supply in May, up from 7.5 months of supply one year ago. Restated, at the May sales pace, it would take 8.5 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand on a non-seasonally adjusted basis) is approximately 6 months.
Industry perspective: In both Alabama and the United States, the spring home-buying season has been affected greatly by very low inventory levels. April residential listings decreased 10 percent in the state and decreased 6 percent nationwide from one year ago. Residential sales in Alabama, however, increased 16 percent from one year ago, which is impressive considering the 10 percent drop in inventory. Home price appreciation cooled off somewhat as the statewide median sales price increased 2 percent from one year ago, while it increased 7 percent during the first quarter of the year. Going forward, home sales prices are expected to continue their upward climb during the summer as inventory levels are likely to repeat the declines that were seen during the spring.
The Lake Martin Waterfront Residential Monthly Report is developed in conjunction with the Lake Martin Area Association of Realtors to better serve area consumers.