Sales: According to the Lake Martin Area Association of Realtors, December residential sales (waterfront and non-waterfront) increased 9.7% year-over-year (Y/Y) from 62 to 68 closed transactions. Sales decreased 4.2% from November, and are up 16% year-to-date. Two more resources to review: Quarterly Report and Annual Report.
For all of the Lake Martin Area’s housing data, click here.
Inventory: Total homes listed for sale in December declined 40.6% year-over-year from 411 to 244 listings. Months of supply decreased from 6.6 to 3.6, reflecting a market where sellers generally have elevated bargaining power.
Pricing: The area’s median sales price in December was $295,800 an increase of 42.3% from one year ago and an increase of 14.7% 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.
Homes sold in December averaged 120 days on the market (DOM), 15 days faster than December 2019.
Forecast: December sales were 19 units, or 38.8%, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 49 sales for the month, while actual sales were 68 units. ACRE forecast a total of 759 sales in the area year-to-date, while there were 890 actual sales through December, a difference of 17.3%.
NAR commentary: According to the National Association of Realtors (NAR), existing home sales nationwide increased 0.7% from November (seasonally adjusted annual rate), reaching the highest annual level since 2006. Sales increased significantly from one year ago, rising 22.2%. Sales prices continued to grow at higher rates than before the pandemic, rising almost 13% year-over-year.
Lawrence Yun, chief economist for NAR said, “Home sales rose in December, and for 2020 as a whole, we saw sales perform at their highest levels since 2006, despite the pandemic. What’s even better is that this momentum is likely to carry into the new year, with more buyers expected to enter the market. Although mortgage rates are projected to increase, they will continue to hover near record lows at around 3%. Moreover, expect economic conditions to improve with additional stimulus forthcoming and vaccine distribution already underway.”
ACRE commentary: Home sales in Alabama increased for the seventh consecutive month in December, rising 24.2% year-over-year. The strong rebound in sales activity during the summer months has extended into early winter, with all metro areas in the state recording year-over-year gains in home sales during 2020. Buyers are incentivized by low mortgage rates, increasing their buying power during a time of rising sales prices, which increased 15% Y/Y in December. Sales prices continue to grow at a faster rate than before the pandemic, which could motivate more potential sellers to list their homes going forward. Tight inventory has played a large role in driving sales prices upwards, with total listings down 35.3% in December.
Click here to view the entire monthly report.
The Lake Martin Area Residential Monthly Report is developed in conjunction with the Lake Martin Area Association of Realtors to better serve area consumers.
Editor’s Note: All information in this article reflects data provided to the Alabama Center for Real Estate for the time period December 1 – 31, 2020. Thus, the performance represented is historical and should not be used as an indicator of future results, particularly considering the impact of COVID-19 on the housing market.