Housing sales on the rise

Local markets see impact of summer lake season

Published Thursday, June 25, 2009

The summer lake season has brought about a turn in the Lake Martin real estate market, according to a May housing report from the Alabama Center for Real Estate.

The report showed the number of home sales in the market increased from 16 in April to 34 in May while sales statewide increased by 3,000 units during the same time.

“May was the best month we’ve had since September 2008,” RealtySouth associate broker Rhonda Gaskins said. “Sales have increased 100 percent.”

The increased sales could be attributed to low interest rates, the summer season and a full lake, which helps to protect the area from further problems within the market, Gaskins said.

“We’ve always had our insulated bubble right here with the lake,” Gaskins said.

The report also showed the average sale price for the market was at its highest point of the year in May at $343,263, which Cal Johnson of Pinecrest Brokers attributes to increased activity on the lake.

“Numbers are up primarily due to lake home sales,” Johnson said. “We’ve seen a lot of lake activity with the lake level being up and we’re seeing some good feedback.”

Johnson attributes the increased selling price to an influx of condominium sales and said there are still deals to be had with homes.

“There are still people out there that see a good bargain with favorable interest rates,” Johnson said. “All the stars and planets are aligned right now.”

Gaskins expects May’s numbers to carry over through the rest of the year if interest rates remain low.

“I really feel like we will sell all the way until Christmas depending on what interest rates do,” Gaskins said.

Johnson remains cautiously optimistic about the immediate future of the market’s strength.

“I’m still being cautious and telling folks that we may be flat for another nine to 10 months,” Johnson said. “I’m staying positive about where we are right now, but I’m realistically cautious.”

The report from the ACRE also showed that the median selling price within the Lake Martin market dropped from its high point of the year in April of $270,000 to $222,000 in May. The number of homes for sale and the number of days on average each home spent on the market also increased between the months of April and May.

According to the report, the state saw home sales increase to 3,409 units in May compared to 3,129 units in April.

Houses statewide spent an average of 155 days on the market in May.

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