Jan Todd

Summertime real estate on the lake – – hot stuff!

Jan Todd
Happy summer, everyone! I know the calendar says we have a couple more weeks or so before the official start of summer, but if you’re like me, the first sizzle of a hotdog on Memorial Day weekend kicks off the season in style.
In the real estate world, summertime is more than Coppertone and watermelon and swimming in the lake. It is the busiest time for home sales — particularly for families with kids in school.
Year-to-date waterfront home sales are up 45% over last year’s, and 35% over the 2019 year-to-date sales. May sales were a bit below average, with 12 waterfront homes sold on the lake:
In the chart above, the green line represents the number of waterfront homes sold on Lake Wylie by the month in 2021, and the blue line represents the 4-year average. Sales typically begin building in early spring, and peak mid-summer, staying strong through October.
The drop from April to May in 2021 was atypical — but these are atypical times. A shortage of listings and buyer frenzy have been driving the market in recent months. The number of homes under contract has been strong, between 30-40 during the past 4 months, so for only 12 homes to close in May was a surprise.
However, about a third of the homes listed as “under contract” is new construction, which typically takes several months to close, depending on the stage of the build when it went under contract. Also, some sellers are negotiating a longer close period, to give themselves time to find a place to live.
Of the 12 homes that closed in May, all but two were on the market for less than a week before going under contract. Seven sold at or above the asking price — and two sold for more than 20% above the asking price! The market is still hot, hot, hot. However, the shortage in listings is an issue:
In the chart above, the blue line represents the number of waterfront homes sold in the 12-month period ending 5/31 each year, and the red line represents the number of listings on the last day of May each year. Historically, the number of listings was close to the number of homes sold on an annual basis. That began to change in late 2019. Now the gap between supply and demand is quite pronounced — driving prices up.
Waterfront Lots
Dockable waterfront lots on Lake Wylie are having a record sales year. Despite the rising costs of construction, buyers are turning to lots to build their own lake homes when none can be found ready to buy.  The majority of sales are in Belmont and Charlotte — driven by availability.
Buyers are willing to pay top dollar for premium lots — point lots with panoramic views. The average sale price for a waterfront lot on Lake Wylie is about $350,000, the highest point since 2008.
Listing inventory is at the lowest point in years:
In the chart above, the blue line represents rolling 12-month sales thru the end of May each year, and the red line represents the number of listings at the end of each May. Historically, the number of listings significantly outpaced the annual sales, until 2021.  The number of listings has plummeted, and sales are the highest since 2018 (which was a record year!).
You can check out details of recent sales on my web pages: Recent Waterfront Home Sales and Recent Waterfront Lot Sales.
As we head into summer, it is an excellent time to list your property if you have an interest in selling. With hundreds of lake transactions successfully closed, The Lake Wylie team can advise you on how to price your property in this volatile market, what improvements or staging techniques will ensure top dollar, and best strategies for marketing. Please give me a call if you’d like to discuss your home or lot.

Spring Frenzy – Lake Wylie Real Estate Market

Jan Todd

The frenzy continues in real estate sales on Lake Wylie this spring. Both waterfront homes and dockable lots are selling at record paces — the highest number of sales through April in over a decade. At the same time, the number of springtime listings is at the lowest point in years.

People are on the move, all over the country:

Americans are leaving the big cities, but they’re not going far. According to Bloomberg CityLab, they’re heading out to the suburbs, places with a little more space and access to outdoor amenities (like Lake Wylie!). About 84% of movers stayed within their same metro area.
In the Charlotte area, the mover inflow/outflow ratio was pretty flat — which means we didn’t have a large increase or decrease in population change during the pandemic, but people did shuffle around.

Real estate is big news. Prices are climbing, multiple offers and bidding wars are common, and supply (number of listings) is very, very low all over the country.

For several years after the recession (2007-2010ish), new construction slowed considerably — and we’re now feeling the supply pinch.
Though building has started up again in the Lake Wylie area, costs are high, particularly as the pandemic affected the supply of materials.
The ability (and, during the pandemic, the necessity!) to work remotely, combined with low mortgage rates, has encouraged people to start buying houses.

So, here we are. Waterfront home sales are outpacing the 4-year average:

In the chart above, the blue line represents the average number of waterfront homes sold on Lake Wylie, by month, over the past 4 years. The green line represents 2021 sales. Seasonally, sales are lowest in winter months (December thru February), then begin to pick up in spring.
In April of 2021, we’re approaching our summer “peak” levels. There were 16 waterfront home closings in April, and there are currently 32 under contract. Year-to-date sales (42 homes) are outpacing the average by 35%. The average sales price is up to $832,000 for waterfront homes, an increase of about 3% over last year. However – – the mix of homes sold this year to date are, on average, about 15% smaller than last year’s average, so the price increase on an individual home basis is closer to 15-20%, depending on location, price point and features.
The average time on the market for waterfront homes? An astounding 36 days. For perspective, the average time on market for the entire year of 2020 was 115 days – – more than three times as long. Through April, about 70% of waterfront home sales have time on the market of less than a month.  Half sold for the asking price or more.
Waterfront lot sales are equally impressive this year:
In the chart above, lot sales through the end of April are reported for each year since 2011. This year, with 27 lots sold to date, we’ve achieved record levels. Twenty-one lots are currently under contract, which, if they all close, will bring us close to the total for all of 2020!
The average price is $343,000, an increase over last year’s total by 5%.
Listings for both lots and homes are very low:
In the chart above, listings by month over the past two years are shown for waterfront homes on Lake Wylie (blue line) and dockable waterfront lots (red line). While home listings have ticked up a bit in the past two months, that is typical for spring seasonality. Comparing listings for the first of May, our current home levels are down more than 20% from last year, and down 43% from two years ago.
The number of lots listed is down over 40% from last year and from the year before.
The Lake Wylie Man team is working with a number of buyers right now, at all price points, for both lots and land. We have sold more Lake Wylie property than any other realtor in the area, each year for over a decade. Buying and selling lake property involves different considerations than real estate transactions off the lake. Rely on The Lake Wylie Man for expert advice in pricing, marketing, and ensuring the closing is smooth.
To see details for recent sales, visit my web pages: Recent Waterfront Home Sales and Recent Waterfront Lot Sales.
Please call if you’d like to discuss your property. I look forward to hearing from you!

First quarter 2021 Waterfront Sales

Jan Todd

If you (or anyone among your close friends/family) are in the market for a home, you know the current state of affairs. Homes are listed, and before you even have time to set up a showing, there are multiple offers on the home. The market is moving fast! I read this week about a listing in Washington, D.C. area that had over 80 offers — and 75 CASH offers — its first day on the market.

Nationwide, there is an inventory (number of listings) shortage, prices are rising, and the number of days on market is at record lows. Realtor.com’s March 2021 Housing data reported inventory at about half of last year’s levels and prices up 15.6%.

Closer to home, the same Realtor.com report listed the Charlotte metro area listings down 62.6% vs. a year ago, and the median listing price up 18.5%. No wonder buyers are feeling the squeeze!

On Lake Wylie, first-quarter sales were strong for dockable lots and homes:

In the chart above, 1st quarter Lake Wylie sales are tracked with the blue bars representing the number of waterfront homes closed through the end of March each year, and the red bars representing the number of dockable lots. Both home sales and lot sales were up this year in comparison to last year, which is particularly notable considering the number of COVID-19 cases peaked December – February, when most of the offers would have been made on the homes that closed in the first quarter.
Dockable waterfront lot sales for the first quarter were at the highest point in a decade.
Looking at sales in the pipeline, there are 37 waterfront homes and 21 lots under contract — both about double the number under contract at the first of April last year.
At the same time the sales are heating up, the available inventory is continuing to diminish:

In the chart above, the blue line represents the number of Lake Wylie waterfront homes listed on the first of April each year, and the red line represents the number of dockable lots. Both have been on a steady decline over the past 5 years. The number of listings in the chart include properties under contract, so if the contracts hold, there are only 25 homes and 37 lots on the market currently without offers in place.
In first quarter, 65% of waterfront homes sold were on the market for less than a month — 42% for less than a WEEK. More than half sold for full asking price or better.
High demand and short supply mean one thing: Prices are going up. We see that happening on Lake Wylie:
The average price for a waterfront home on Lake Wylie is currently $885,000 — a whopping 18% increase over last year this time. Part of the increase is from a shift towards more expensive homes (eight $1million homes have sold in first quarter this year vs. six during the same time last year), and part is from price increases. 
 
Price-per-square-foot is a tricky measure for waterfront homes. A modest cabin on a spectacular lot can sell at a higher price-per-square-foot than a luxury home on the lake, for example. Also, the number of home sales on Lake Wylie are relatively low in a year, and definitely in a quarter. We typically don’t rely on price-per-square-foot for waterfront analysis.
 
However, across the larger Lake Wylie area, non-waterfront home price/square-foot spiked 14% over last year — a significant jump! Depending on area, condition of your home and amenities, you can expect to sell your waterfront property right now for an average of 10-15% more than you could pre-pandemic. 
 
Setting the right price in a market as volatile as this one takes knowledge and skill. The Lake Wylie Man team closed 42 waterfront transactions on Lake Wylie in 2020 (more than double any other Realtors), and has led the market for well over a decade. We know what sells, and for how much. We can advise you on what changes or updates you may consider for a faster and more profitable sale. We can market your home to buyers ready to purchase lakefront property. 
 
The sales outlook for 2021 is excellent — but we need more listings to keep the momentum strong!
 
If you’re a buyer (or have friends/family in the market), you can rely on The Lake Wylie Man team to advise the true value of a property. Our knowledge of the lake will ensure the best outcome, whether you’re buying or selling.
 
Check out Recent Waterfront Home Sales and Recent Lot Sales for details on closings in the past few months. If you have questions about this report or want to discuss your property, please call me. I look forward to hearing from you!

March 2021 – Waterfront real estate update

Jan Todd

Spring fever is in the air! Some of these recent warm days have lured boaters out on the lake, and real estate activity is picking up considerably. Currently, there are 33 waterfront homes under contract (about 35%-45% higher than is typical for this time of year), and over half of those properties went under contract during their first month on market.

Vacant lots are also selling strongly — with 20 under contract right now. For perspective, a total of 50 dockable lots sold last year. At the beginning of March in 2020 (pre-pandemic) there were 10 dockable lots under contract — so pending sales are double what they were a year ago.

While all price points are in demand, luxury properties are continuing as the fastest growing segment. Year-end sales by price segment for waterfront homes on Lake Wylie in 2020 were as follows:

Under $500k – 23 homes (-12% vs. 2019)
$501k-$699k – 55 homes (+11% vs. 2019)
$700k-$999k – 53 homes (+20% vs. 2019)
$1million+ – 43 homes (+72% vs. 2019)

During January/February of 2021, 6 homes in the $1mm+ price category closed (as compared to 2 homes in 2019), and there are 11 homes in that price category under contract. Typically, first quarter represents under 20% of annual sales — so early 2021 activity indicates a very strong start for luxury home sales.

Higher priced waterfront lots are selling strongly as well. Thus far in 2021, 8 dockable lots have closed on Lake Wylie (up slightly from the past 2 years), and 6 of those lots sold for over $300,000. One, a 3.1 acre point lot in McLean, sold for a head-turning $1.3 million. There are currently 20 dockable lots under contract, the highest number we’ve seen in years.

Waterfront sales usually start taking off in March and build through the summer and into early fall. This year, February sales jumpstarted the season, outperforming the past 4-year average:

In the chart above, the blue line represents the past 4-year average number of waterfront homes sold on Lake Wylie by month, and the red line represents 2021 sales. Based on sales-to-date and pending properties, we can expect first quarter to significantly outperform 2020 levels.

Available inventory (number of listings) on Lake Wylie is still critically low. Not including listings that are under contract, there are only 21 waterfront homes on Lake Wylie available to buyers — about a third of the number available last year. The number of waterfront lot listings are down considerably as well. Low supply and high demand continue to cause prices to inch up on waterfront property.

Check out my webpages, Recent Waterfront Home Sales and Recent Waterfront Lot Sales, to see details of properties sold in the past few months.

Please call if you have any questions or wish to discuss your home or land. In this bullish market, rely on the expertise of the Lake Wylie Man team to price and position your property for the most positive outcome.

History of Lake Wylie

Jan Todd

History of Lake Wylie

Until the early 1900’s, the area now known as Lake Wylie was part of the 224 mile Catawba River. The river was an important resource — once the lifeblood of the Catawba (“river-people”) and other Sioux tribes. Later the river sustained the Europeans who settled and planted near its banks.

However, the river was flood-prone, shoal-filled, and dotted with waterfalls — too turbulent to permit the kind of water traffic that could have truly made it a formidable industrial presence.

                             

 

Dr. Gil Wylie

In the early 1900’s, Dr. Walker Gil Wylie — a well-respected New York physician and former resident of Chester, S.C. — recognized the potential of the river. In addition to his extensive medical experience, Dr. Wylie had an engineering background — which spurred his interest in doing something about the stagnant industrial situation of the area around his hometown.

A graduate engineer from the University of South Carolina, William C. Whitneer, joined with Dr. Wylie and others to build a dam and an experimental hydroelectric plant in Anderson, S.C. Following the success of this venture, Dr. Wylie and his brother created the Catawba Power Company in 1900, and began work on a dam near Fort Mill, SC.

The dam was completed in 1904 and the lake that resulted was christened “Catawba Lake.” In 1924, the dam was rebuilt, bringing the lake’s surface to over 13 thousand acres and 325 miles of shoreline. In 1960, the lake was renamed to honor the Dr. Wylie.

Lake Wylie became one of eleven lakes in the Catawba River chain. Electric power — supplied by what now is Duke Energy — completely transformed the area, carrying the local textile mills into their golden age, bringing people, roads, and prosperity.

Today, Lake Wylie continues to be a major energy center supporting the Wylie Hydroelectric Station, Allen Steam Station and the Catawba Nuclear Station (pictured above). The lake also serves as a water supply for Rock Hill, S.C. and Belmont, NC.

While the Lake Wylie area is no longer the untamed, natural wilderness of the days of the Catawba tribe, it remains a place of beauty and growth. Beautiful homes grace the waterfront. Duke Power provides six public boat access areas. Residents enjoy the fishing, camping, and restaurants around the lake.

What can my money buy on Lake Wylie?

Jan Todd
What can my money buy?
It is always helpful for buyers to understand what types of properties they can buy at different price points on Lake Wylie. Prices for waterfront are determined by factors different than interior homes. For instance — view, amount of shoreline, area of the lake, water depth, type of surrounding properties, topography, condition of property including lake amenities (docks) — all affect price.
Based on averages, however, properties by price point can be described as follows:
  • Under $500k: Approximately 1,550 square feet in size, 46 years old.
  • $500k-$699k: Approximately 2,500 square feet in size, 31 years old.
  • $700k-$999k: Approximately 3,950 square feet in size, 21 years old.
  • $1MM + : Approximately 5,150 square feet in size, 16 years old.
Prices for all waterfront properties are on the rise, more so for certain sizes, locations and price points that represent the highest demand. Rely on The Lake Wylie Man team for expert advice on pricing and marketing your property.

Lake Wylie Waterfront Sales – Year End Review

Jan Todd
In spite of our tumultuous times, the real estate market on Lake Wylie had a historically successful year, breaking sales records and ending the year strong. For sellers, the metrics are all encouraging: prices on the rise, properties selling quickly, and demand that far outpaces supply. For buyers, low mortgage rates are enticing, but tight supply means there is heavy competition for new listings, and buyers need to be ready to act quickly.

 

Topline Sales Summary
Waterfront home sales (blue bar) reached record levels in 2020, with 167 sales, an 18% increase over 2019. Dockable waterfront lot sales totaled 44, a 10% rise over previous year.
The market has been very strong since 2016. Currently there are 14 homes and 13 dockable lots under contract, painting a positive picture going into 2021.

Average prices are climbing significantly. In 2020, the average home price (represented by the red line) rose to $805,000 – a $50k jump over 2019 average prices. The average dockable lot price rose to $325,000.

Sales by month in 2020 reflected the unusual nature of the year:

In the chart above, the dark blue line represents the past 3-year average number of waterfront home sales on Lake Wylie, while the grey line represents number of lake homes sold in 2020. Considering homes usually take 6-8 weeks to close, the “sales” chart generally lags buyer activity (purchase contracts) by 1.5-2 months.
First quarter sales were “normal,” but as the pandemic hit in early March, the initial impact was evident in April/May. Stay-at-home orders and real estate showing limitations slowed the market initially, but then sales recovered — and even took off — on the lake as people began changing their lifestyles.
Lake Wylie, as well as many resort towns, experienced higher demand for housing as buyers began to put more emphasis on outdoor recreation, suburban or rural locations, and home-oriented settings to work and relax.
Supply side
Probably the most extraordinary consideration about the record sales is they occurred in a time of record low inventory  for both waterfront homes and land on Lake Wylie:
In the chart above, the blue line represents number of waterfront home listings (including properties currently under contract), and the red line represents waterfront lot listings on Lake Wylie. Typically, the lowest point of listings is reached in the winter months of each year, but the current inventory levels are nothing short of dire.
During the recession years (late 2007-2009, inventory levels were at record highs. Demand for properties was far less than supply. That began to shift about 5 years ago, and reached critical points in 2020.
As of the first of the year, there were only 41 listings for Lake Wylie waterfront homes, and 63 listings for dockable lots. Of the 41 homes, 14 are under contract.
Also, the home listings include 15 properties that are “proposed construction.” While these appear as home listings, they are actually waterfront lots paired with sample house plans, either planned by builders or provided simply as an idea of a home that will fit on the lot within the neighborhood. A few more listings are homes under active construction, but not yet complete.
The low supply of waterfront property has a profound impact on the market. New listings receive immediate attention from buyers, and if the price is right and the location and condition of the home are desirable, quick sales are common, many with multiple offers. In 2020, over 40% of sales contracts were written within the first month of listing.
Sales by Segment
With record high demand and record low inventory, the make-up of sales was bound to shift. Historically, supply has been highest relative to demand in the luxury $1 million+ segment. In 2020, buyers with bigger wallets came to market, and we had the highest number of luxury sales of any year, with 42 homes selling for $1 million plus. That blew away the past record of 25 homes sold in that price segment in 2019.
Here is how the sales shifted by price segment:
In the chart above, for each year the blue bar represents share of homes sold for under $500k, the red bar represents $500k-$699k, the green is $700k-$999k, and the purple represents $1 million+ priced homes. The chart depicts SHARE of sales, so each year totals 100%.
We see in 2020 the higher priced homes claimed a bigger piece of the sales pie, with 25% of sales at $1 million plus and another 31% in the $700-$999k segment.
The under $500k segment, which claimed 38% of sales just five years ago, represented only 14% of 2020 sales.
One portion of the lower priced properties is what we refer to as “cabins,” typically older lake properties (built before 1970), smaller structures intended for weekend/2nd home use. Over the years, these structures have either fallen into disrepair or are outdated — thus are sold for land value only — or are remodeled and updated for weekend use.
Cabin sales were very strong in 2020:
In the chart above, the blue bar represents number of “cabins” sold — 19. Supply of these properties can vary greatly year-to-year, but when available, sell very well.
The red line, on a separate axis (see right side of the chart) represents the price trend. Not surprisingly, the prices for cabins has been on the rise over the past few years. Some of that can be attributed to renovations, some can be attributed to increased demand.
The average price for cabin properties on Lake Wylie rose to almost $440,000. The average size of the cabin was 1,179 square feet. Often times cabins are located on premium waterfront lots, with nice views — which impacts the price. The potential use of the property also comes into play when pricing a cabin. Predating our current shoreline restrictions on Lake Wylie, some cabin properties can be used as a future building site for a larger home, but some cannot. A Lake Wylie expert (e.g. The Lake Wylie Man!!) can advise potential sellers and buyers on these very important considerations.
Geographic Sales on Lake Wylie
Lake Wylie is different than many lakes in that it is located in 2 states and 3 counties, with different regulations and considerations for each area.
In 2020, sales for waterfront homes by area were as follows:
The sales were split evenly by state in 2020, with half in NC (Belmont & Charlotte) and half in SC. The highest average price was in York, at $925,000. The lowest average price was in Tega Cay/Fort Mill, at just under $725,000.
Compared to 2019, Charlotte had the largest gain in sales in 2020, increasing to 32% share of the market from 21% share a year ago. Tega Cay, Lake Wylie and Rock HIll all dropped in share. However, 2020 was a year heavily driven by supply. With such low supply (listing) levels across the board, some buyers bought what was available, even if the location wasn’t necessarily their first choice.
With 2020 being such a very strange year, we have to be careful in making assumptions of trends based on activity during the year!
Waterfront lot sales (dockable) broke out as follows:
There were no dockable lots sold in Rock HIll or Tega Cay — the most developed parts of the lake, where little raw land still exists.
Charlotte and Belmont represent the bulk of land sales in 2020. In Charlotte, there were several sales in The Sanctuary, which pulled up average price considering the high acreage tracts. There were also a number of sales in the Palisades area.
In Belmont, sales were scattered in Reflection Pointe, McLean, and a few in other neighborhoods such as Misty Waters, Woodland Bay, and others.

Winter Waterfront Market

Jan Todd

Well folks, we’ve almost made it through 2020, and for a year with the same moniker as perfect vision, there were a lot of things we didn’t see coming. Case in point: in a year when we struggled with tight inventory, never seeming to have enough waterfront homes available for sale, we’ve already surpassed the sales record on Lake Wylie!

Yep, as of November 30, 158 dockable waterfront home have closed so far this year, exceeding the record of 156 in the full year of 2016. There is more to come this year, of course, with 19 homes currently under contract, some of which will close in December.

Check out the monthly waterfront home sales in comparison to the past 3-year average:

In the chart above, the dark blue line represents a 3-year average number of closings for dockable waterfront homes on Lake Wylie by month. The light gray line represents 2020 – – a bit atypical and more volatile, but hey, it’s 2020.  After a market “crash” in April and May during the early days of the pandemic, waterfront property on Lake Wylie began selling like Lysol during the summer — even as available inventory levels dipped to their lowest point in decades.
The number of dockable lots sold to date in 2020 has reached 40 — equal to the total number sold in 2019. The average price of almost $325,000 is the highest average in a decade, driven partially by high dollar sales in The Sanctuary and a few other premium locations scattered across the lake. Many of the lot sales this year have been on the market for awhile — over half of the lots sold were listed for more than a year. Some were listed for over 4 years!
Tightened inventory and looser pocketbooks have had a positive impact for sellers on Lake Wylie.
Currently, available inventory is at a very low point:
In the chart above, the blue line represents the number of dockable waterfront home listings on Lake Wylie at the first of December from 2016-2020.  The red line represents the number of lot listings. Listings under contract are included in these numbers, as the MLS includes them in the “on market” numbers.
Right now, there are 50 waterfront homes listed — 31 available plus 19 under contract. There are 70 waterfront lots listed — 56 available and 14 under contract. While the number of listings on Lake Wylie typically fall off a bit in winter months, the chart above compares the same time for each year and illustrate the remarkable decline in available inventory.
We are still seeing a lot of activity from buyers who are waiting in the wings for the right property — in spite of the pandemic and the winter weather. If you’d like to discuss your property, I’d love to hear from you.
I wish you all a healthy, happy holiday season.

A roller-coaster ride in real estate – November 2020

Jan Todd

October numbers are in for Lake Wylie real estate activity, and It has certainly been a roller coaster ride!

TWENTY-SIX waterfront homes closed in October — a month that usually averages 8-10 closings. Last year the market had a record-breaking October, with 16 closings. Check out this year’s performance in comparison to the past 3-year average:

In the chart above, the dark blue line represents the last 3-year average number of closings per month for dockable waterfront homes on Lake Wylie. The light blue line represents 2020 performance. It has been an unusual year indeed, with closings falling far below normal during the first couple months of the pandemic, then higher than normal thereafter.
About a third of the homes closed in October were on the market for less than a week, and many sold at or above full asking price. Eight of the closings were in the luxury price category (over $1 million).
Low mortgage rates and changes in lifestyle have contributed to the uptick in lake property, as well as pent-up demand from the past couple of years as we have seen inventory decline. Offerings at different price points have not been able to keep up with demand.
Here at the beginning of November, the number of listings has reached another low point. Only 49 dockable waterfront homes are currently listed, with 22 of those under contract!
Looking at listings the past few months, the decline is pronounced:
In the chart above, the blue portion represents the number of waterfront homes under contract at the first of each month since June, and the red represents the number of available waterfront homes.  In the MLS, the number of listings reported includes “Active” plus “Under Contract,” because sometimes properties under contract can continue to be shown for back-up offers, and occasionally offers do fall through.
In June and July, the total number of listings hovered around 90 waterfront homes. Typically, the number of lakefront listings peak in the summer, and this year was no exception. However, in comparison to the summer months of 2019, total listings were down 30%! Combine that statistic with record sales, and it is a classic low supply/high demand situation.
The small number of homes available becomes even more dire when we break the listings into price points or areas on the lake. There are zero – – yes, zero – – listings under $500,000. Almost half of the available homes are priced over $1 million. Looking for something in the $700,000 range in the Clover School District? There is one house.
Waterfront lots are also in demand. While year-to-date sales are about level with the past two years, inventory is very tight. Currently, there are 74 dockable lots listed, and 14 of those are under contract. The number of listings is down over 20% in comparison to the past couple of years. With waterfront home inventory so tight, buyers will consider building and need land for their lake homes. Many will consider purchasing a cabin or lower-priced older home to remove and use as their building site.
To see details on recent sales activity all over Lake Wylie, please visit my web pages Recent Waterfront Home Sales and Recent Waterfront Lot Sales.
Now is a great time to sell Lake Wylie waterfront property, even though (in a typical year) we’d be entering the slower season of selling. But this is no typical year. Now more than ever it is important to use a Lake Wylie waterfront expert to help you price, market and sell your property.  The Lake Wylie Man has led the market in waterfront sales each year for over a decade, and can offer unparalleled insight and service. Give us a call!

3rd Quarter Update – Lake Wylie Real Estate

Jan Todd

Hope everyone is enjoying these crisp autumn mornings! It is one of my favorite times to be out on the lake, and I’m looking forward to watching the fall colors reflecting on the water.

We’ve just wrapped up the third quarter of 2020, and we’re headed towards a record setting sales year on the lake. In September, 13 waterfront homes and 5 dockable lots closed on Lake Wylie. Lot sales are keeping pace with the past couple of years, and home sales are soaring to a new year-to-date high:

In the chart above, the blue bars represent the number of waterfront home closings through September of each year since 2007; the red bars represent the number of dockable lot sales.

As of the end of September, waterfront home sales total 122, and there are currently 38 under contract — putting us on track to have a record sales year on Lake Wylie.  Waterfront lot sales are also expected to finish strong, with 32 lots sold to date and 14 currently under contract.

However, the number of listings are at a RECORD LOW. There are only 65 waterfront homes currently on the market, and with the large number that are under contract, there are only 27 available. In September, over half of the homes that closed were on the market for less than a week. New listings are being snatched up by eager buyers, many with multiple offers and sales at or above asking price.

Typically, sales begin to drop off as the summer ends, as illustrated in the chart below:

Above, the dark blue line represents average sales for Lake Wylie waterfront homes over the past three years (2017-2019), and the light blue line represents home closings per month in 2020.  Closings dropped in the early days of the pandemic, but recovered in June and continued at a strong pace.

With the number of homes currently under contract, we expect 4th quarter sales to exceed the 3-year average, especially if additional homes are listed during that time. With pent-up buyer demand, it is an excellent time to be in the seller’s shoes.

Waterfront lots, too, are in demand this year. Inventory is at a low point, with only 70 dockable lots currently on the market, and with 14 under contract, there are just 56 available. Lot sales generally benefit when the home market is tight; as buyers are unable to find available waterfront homes, they often choose to purchase a lot and build.

Average prices for waterfront homes and lots have been trending up over recent years:

In the chart above, the blue line represents average waterfront lot price, and the red line represents average waterfront home price on Lake Wylie.  So far in 2020, the average price for waterfront homes is almost $760,000, and the average for lots is about $325,000.

We have had some extraordinarily high priced lot sales in The Sanctuary — a 12 acre tract for $1.2 million and three others in the $400’s. Removing The Sanctuary sales, the average lot price is in the mid $280’s — still a strong level in comparison to recent years.

Sales by price segment show increases in the higher price points for waterfront homes:

 

In the chart above, the blue bar represents the percentage of home sales in the <$500k segment, the red bars represent $500k-$699k, the green bars represent $700k-$999k, and the purple bars represent $1 million+ homes.

Mainly because of lack of inventory in the lower priced segments, the mix of sales has shifted. Also, we have had a larger number of luxury-home buyers in our marketplace, driving an increase in the $1 million+ segment.

Thus far in 2020, 27 homes have closed for $1 million+.  In 2019, there were 25 sales in the $1 million+ category at year end, and THAT was a record year!  Of the homes currently under contract in 2020, 14 are priced over $1 million, so it appears we’ll see an impressive new record on Lake Wylie.

Typically, the time on market for the luxury priced homes has been quite a bit longer than for the lower priced homes, because the inventory for higher priced homes has generally exceeded demand. With the increase in sales in that segment, inventory is more in line with demand and we’re seeing quicker sales. More than half of the $1 million+ priced homes this year have sold in under a month.

 

If you’d like to see details on this year’s sales on Lake Wylie, please visit my webpages Recent Waterfront Home Sales and Recent Waterfront Lot Sales.