After analyzing monthly waterfront sales for well over a decade now, I know not to put too much importance on what happens in January. Weather, lake levels, and inventory levels are often off-kilter in the winter months, and all of these impact buyer activity. Plus, the winter months are the least active for sales both on and off the water, so first quarter closings don’t always provide a great indication of how the year will turn out.
That being said, with SEVEN waterfront home closings and SIX dockable lot closings in January, the market came out of the gate the strongest it has in several years. In addition, there are currently 24 waterfront homes under contract, and 6 lots, which is impressive given the low inventory levels that plagued us in recent months. Of the homes that are currently under contract, six (25%) were on the market for less than a month.
We have buyers waiting in the wings, ready to purchase, and with record low inventory levels, new listings get a lot of attention quickly. (Pause for a commercial break!) It is particularly important to price your property correctly, prior to listing, and make sure that potential issues are addressed and the property is ready to sell, and having a Realtor experienced in waterfront is vital.
So, what’s selling? Homes under contract are equally disbursed between Belmont, Lake Wylie (Clover School District), and Charlotte, plus a couple of properties in Tega Cay area. The higher priced properties represent the bulk of sales, with 9 over $1 million, and 8 priced $800-$999k. The tightest segments in active inventory are mid-priced and lower priced properties. That tight inventory is limiting sales. There are currently 7 homes under contract that are priced under $800k.
Waterfront lot sales are benefitting from low home inventory, as buyers unable to find ready waterfront homes shift their focus to building. Here’s something interesting: Of the waterfront lots that closed in January, half had been on the market for under five weeks, and two had been on the market for 3-4 YEARS. So average time on market if pretty meaningless! We noted that throughout last year’s lot sales; quite a few lots that had been on the market for years finally sold!
Here’s a closer look at waterfront lot sales since January 2017:
- Belmont, 31 lots, average price $224,000
- Reflection Pointe (in Belmont), 14 lots, average price $154,000
- McLean (in Belmont), 5 lots, average price $432,000
- Lake Wylie (Clover School Distr.), 24 lots, average price $280,000
- Charlotte, 17 lots, average price $317,000
- Rock Hill, 3 lots, average $287,000
- Tega Cay/Fort Mill, 3 lots, average $370,000
Reflection Pointe in Belmont still has a number of dockable waterfront lots selling for less than $150,000. This development was hardest hit by the recession, and slowest to recover. Meanwhile, just down the road in McLean, lots are commanding premium prices. Woodland Bay and choice main channel lots are also yielding prices over $300,000.
In Lake Wylie, properties go up in price as the location gets closer to the Buster Boyd Bridge. Handsmill on Lake Wylie is also beginning to sell well. There have been lots on the southern end of the lake, around Allison Creek, selling above $300,000, but similar lots in the 29710 zip code generally sell for 10-15% higher.
Good news for sellers of waterfront cabins! Average sale prices have been on the rise for the past few years. Take a look:
Waterfront cabin sales on Lake Wylie, Average Price by Year
2013 – $311,000
2014 – $355,000
2015 – $355,000
2016 – $364,000
2017 – $386,000
The price for waterfront cabins is impacted by the buyer’s planned use for the property. If they plan to remove the cabin and build a permanent home, the presence of the cabin can be seen as a negative. But often a buyer wants to enjoy the cabin as it is, prior to building or as a second home indefinitely. Cabins that are neat and in good condition command a premium price.
If you’d like to see more data on recent sales, visit The Lake Wylie Man Waterfront Market Sales Report for 2017. The Lake Wylie Man is the leader in waterfront sales on Lake Wylie. Rely on the market expert for buying or selling waterfront real estate!