Waterfront home sales on Lake Martin, Alabama continue to look good.
Through the Lake Martin MLS,* 21 waterfront homes were sold in May 2010 compared to 22 in 2009, 14 in 2008, and 23 in 2007.
Here is an associated chart that shows monthly waterfront homes sales on Lake Martin since 2007:
If we take a look at the cumulative results, Lake Martin real estate fans will see that 2010 is still tracking way ahead of last year and 2008. I think 2008 was the bottom for the Lake Martin real estate market, so I certainly expect it to be beating 2008.
I am a firm believer that the leading trend statistic to watch in real estate, Lake Martin or otherwise, is comparing this month’s sales versus the same month of the prior year. Therefore it gives me a little pause when I see that May 2010 lost, albeit by one waterfront home sale. Even with sales in the twenties, though, I just don’t think that number is too statistically significant. In other words, one – schmone. It was pretty much a tie.
Now, if we see that June ’10 loses to June ’09, we may have spotted a trend here. But from what I am seeing on the market now, and the level of sales activity that has spiked up, I don’t think that will be the case.
I think that prices are still under a lot of pressure. There is still a lot of waterfront homes for sale on Lake Martin, and, despite the sales momentum, prices are kept low. This is evidenced by the silence at the same old overpriced homes, while the homes that come back on the market with reduced prices get the first attention of buyers.
Here is a graph of all of the waterfront homes for sale right now on Lake Martin:
Another question I get a lot is what, if any, influence is there of people fleeing to Lake Martin property as a reaction to the oil spill in the gulf?
I think the answer is – it’s still too early to quantify the impact on sales. True, I have had several new buyers to call me that were on the fence considering beach vs. lake and they say this has swayed them, but they haven’t bought yet.
I have noticed a marked increase of people calling me about short term rentals on Lake Martin. I guess they canceled their beach condo rental and are looking for a substitute. I don’t handle rentals so I always refer them to others. I must admit my random rental calls have doubled. Will these people fall in love with Lake Martin, and then decide to buy? Who knows. I can’t imagine that it hurts the lake.
Let me say this, I know a lot of really good agents all up and down the Gulf Coast and I hope this doesn’t affect them too drastically.
We are still relatively early in the sales season at Lake Martin. The crucial months of June, July, and August will really tell us how serious 2010 waterfront sales are. It’s simply too early to guess. Praise God, I have been twice as busy as I was this time last year with buyers and sellers. I am sure other agents must be experiencing the same things, and this leads to more real estate sales on Lake Martin.
Lake Martin Real Estate Sales 2009 – Waterfront Lots
Lake Martin Real Estate Sales 2009 – Year In Review
Lake Martin Real Estate Sales 2008 – Year In Review
Lake Martin Real Estate Sales 2007 – Year In Review
(*)Disclaimers: All of the above info was taken from the Lake Martin Area Association of Realtors Multiple Listing Service. Accuracy is not guaranteed but deemed reliable. The above does not include sales by FSBOs or developers that sell privately and not through the MLS. But, I do think that the above represents a very large majority of all sales on Lake Martin.