Vital Signs – May 2018
To say ” things have been on the move” here at Lake Martin may be a slight understatement.
I will put it to you this way (I prefer to keep things simple… I have too many things to do and too much to read on a day-to-day basis, as I am sure you do too, not to keep it simple). There are more people wanting to buy a home on Lake Martin than we (us agents) have homes to put them in. Inventory is at a 10-year low.
“So what?” you might ask. Let me give you the skinny on how low home inventory level affects the marketplace.
- With inventory being so low and demand high, this tends to put upward pressure on home prices. Like the rest of the economy, if its rare or there isn’t much of one particular thing, you have to pay the price.
- Side note: From a buyer’s standpoint, this is both good and bad. Yes, you have to pay a little bit more, BUT you are also buying into a STRONG MARKET. It is a good investment is what I am trying to get at.
- For you homeowners out there, you should all be clapping your hands because you have the “upper hand”.
- BUT, don’t get crazy on what you think your home may be worth. If an agent who is listing your home cannot provide you with a complete CMA of market data and analysis (i.e. what has been selling and for how much) and tells you your home would sell at $1,000,000 when you only paid $600,000, I suggest you run the other way. The market data MUST support your listing/asking price. Buyers are smart. They know when something is off.
- As an agent, I am a bit of a spreadsheet fanatic. I will give you extensive detail and data when pricing a home or offering a buyer my opinion on whether an asking price on a home is reasonable. (IF your agent does not do this for you and has no clue what has been going on in the market place, I might would do a little more “Agent Shopping”). However, at the end of the day, do you really want to know what something is worth? I will tell you….. it is worth what someone else is willing to pay for it. The end.
- Sales Volume is up 22.5% over this time last year (2017). Layman’s terms: people are buying and they are buying fast.
- Average Days on the Market (DOM): 150-180 days is normal in a second home market.
- With supply being so low and homeowners having the “upper hand” here is what you can expect next.. the buying will slow down a little bit. Homeowners will take advantage of the strong market (some will notice sooner rather than later) and an increase of supply will come in. Yet, inventory would still be below normal levels even if 20 new listings came on the market tonight. Good news for you buyers, this will keep the prices of homes on Lake Martin “in check”
- Furthermore, the new tax bill is sort of a big deal I hear. Check out this article about how that affects buying a second/vacation home. https://www.wsj.com/articles/want-a-vacation-home-check-the-tax-laws-first-1525878000?mod=searchresults&page=1&pos=1
In summary, here are the facts you need to know. It is both a time to buy and sell in a strong market here on Lake Martin. Even more so, you need a good agent on your side to get you through this process as smoothly as possible.
Have a blessed week!