Lake Wylie real estate

Waterfront Sales Update – Fall 2017

Jan Todd

It has been nice to have a little chill in the air this week, a sure sign that fall is on its way.  There were a dozen waterfront home closings in September, down from last year’s record setting level of 18.  We’re now lagging in closings by 7 homes vs last year, but still posting some very positive market trends.  In addition, waterfront LOT sales are at an all time high, with 56 closings to date.  That is more than the year end number for any year in the past decade!

Here are some highlights for this year’s waterfront market:
• Average waterfront home sales price is $712,000 – highest since 2008!
• Average time on market for waterfront homes is just 144 days, fastest since 2007
• Average WF home sales price is 93% of the original price, best performance in over a decade
• Waterfront lot sales prices average $254k, highest since 2010.
• Number of waterfront lot sales is the highest in over a decade
• Twenty percent of waterfront lots sold so far this year had time on market in excess of 1,000 days.  Some “old” inventory is beginning to clear out.
• Listings are at a low point, both for waterfront lots and waterfront homes.  Lack of inventory is affecting market dynamics significantly.

Waterfront Sales trend over time:

The solid blue bar represents number of waterfront home sales through 3rd quarter of each year.  The red striped bar represents waterfront lot sales.  While 2016 hit record levels for home sales, 2017 performance follows closely behind.  If it weren’t for the shortages in inventory (number of listings available), I feel sure that this year’s performance would surpass last year’s.  In DOLLAR sales, however, 2017 is ahead of last year and is at record levels, with $76.5 million in total waterfront home market sales.  That’s about 8% above last year.

Waterfront LOT sales are at record numbers, with 60 lots closed to date, and 11 currently under contract.  Average price of waterfront lot sold on Lake Wylie this year is $254k, the highest since 2010 and a 12% improvement over last year.  Lot sales by area:

•21 lots in Belmont, averaging $186k.  Highest priced lot in Belmont was $500k, in McLean.  Lot sales in Reflection Pointe brought the average price down, with 13 lots sold at an average of $154k.

•18 lots in the Clover School District, averaging $290k.

•134 lots sold in Charlotte, average price $308k.  Three sales in The Sanctuary (or adjacent), plus a couple of premium priced lots in The Palisades area brought the average sales price up.

•2 lots in Rock Hill (average price $285k), and 2 lots in Tega Cay ($337 average price.)

Sales price trend is as follows:

The blue bar (on top) represents sales price for waterfront homes, through 3rd quarter of each year.  The red (bottom) line is average sales price for lots.  After several years of “flat” performance, the average prices are ticking upward.  This doesn’t necessarily translate to price increases on individual properties, however.  Rather, the average price is driven more by the mix of properties purchased.  This year, we’ve seen RECORD LEVEL sales of $1 million plus homes, and have seen an increase in PREMIUM waterfront lots.

McLean homes and lots represent a premium priced waterfront development, however its impact has not been significant yet.  The higher priced lot sales are scattered all over the lake: Handsmill in York, The Sanctuary and The Palisades in Charlotte, Woodland Bay, Reflection Pointe and McLean in Belmont, Fort Mill/Tega Cay, Allison Creek, Concord Road.  As home inventory tightened up, buyers turned to waterfront lots to build their own homes rather than buy established.

Million-plus dollar home sales were scattered around the lake as well:  a couple in McLean, a few more in Belmont, York, Tega Cay, quite a few in “non-neighborhoods.”  In addition to the 16 homes sold to date in the $1 million category, there are 11 currently under contract.  Four of these are new construction (McLean), and may not close in this calendar year, depending on completion schedule.  In 2016, there were 15 sales in this price segment for the entire year, so already we’re significantly ahead of last year’s record breaking numbers.

New homes in The Vineyards on Lake Wylie (upper lake area) have several sales in the $800’s and $900’s, newer construction homes not found in abundance on the southern part of the lake.

Waterfront Homes by Price Point:

In the chart above the blue bar represents last year’s sales through 3rd quarter, and the red bar represents number of waterfront homes sold this year.  Sales surpass last year most significantly in the $1 million plus segment, followed by homes in the $500-$799k segment.

The GREEN bar represents number of homes currently listed in each price segment, and the percentage differences below the chart depict listings vs. last year.  The most dramatic story is in the lower priced homes, where there are just 9 homes currently listed (including some under contract!).  Stacked up against “demand,” more accurately represented by last year’s sales, you can see that the decline in sales for homes under $500k can be blamed on lack of inventory, which is about 71% lower than it was last year!

Inventory in the $500-$799k segment is down 22% vs last year, and sales for this year show a modest increase over last year’s, in spite of the inventory shortage.

Inventory in the $800-$999 price range is probably the “healthiest,” with a good number of choices relative to the number of buyers.  In the $1mm+ segment, homes available still outweigh demand, but with the increase in demand in this price category, the outlook is improving over what we’ve seen in recent years.  There have been quite a few new listings in this segment, and more than a third of this year’s sales have occurred with homes on the market less than 2 months.

If you’d like to see more details about recent home and lot sales, please visit my webpages for home sales:https://thelakewylieman.com/waterfront-home-sales

and recent lot sales: https://thelakewylieman.com/recentlysoldlots

As always, I welcome your calls and emails to discuss your property in more detail.  Thanks!

Check out my website for Lake Wylie real estate.  We specialize in Lake Wylie waterfront homes and land.

Development Update – Fall 2017

lakewylieman

As the heat of summer begins to subside and we settle into our fall routines, the real estate market generally begins to slow down a little. This year, however, the bullish market is still blazing!
Lake Wylie waterfront home listing inventory is at record low levels, particularly in the mid- and lower-priced ranges. This is having a profound impact on the market. Waterfront homes are selling at a much faster rate, at an average of four months on market, compared to about six months in 2016. Sellers are also seeing offers closer to their asking price, and the average waterfront home sale is about $687,000, up 14% from 2014.
Increased demand for quality homes is motivating buyers to stay on top of new listings. Since May, over half of waterfront homes sold were on the market for less than a month! While most of these quick sales were in the moderate price waterfront segment ($500,000 – $800,000), several were in higher priced, “luxury” segments. As true in recent years, inventory levels in the million-dollar plus price range is still much higher than demand levels. However, buyers in this category often have specific criteria, and when a new listing meets those criteria, they are ready to buy.
What is selling on the lake?
In reviewing sales from the current year, along with what is currently under contract, we can get an idea of what is driving today’s buyers. Sales have occurred all around the lake, with 70% on the South Carolina side. Almost half of sales (45%) were in the Clover School District.
Waterfront homes in the 500K and under price point average about 40 years in age. More than half of these sales went under contract in under two months. Current inventory is less than 25% of last year’s levels, the most pronounced shortage of any price segment.
In the $500,000 to $1 million category, the median age of sold homes is 24 years, with average time on market about four months. While the current inventory is higher in this price point, it still demonstrates a deficit with about 30% less than last year this time.
Homes over $1mm are selling at record levels, with ten homes sold in this luxury price segment through the end of July.
Waterfront lot sales are outpacing last year’s by about 30%, quite likely a result of some buyers deciding to build their home after being unable to find an existing property that met their needs.
Market Trends Off the Lake
In general, the market is very strong within the Clover School District. The median home price off the lake is $283,000, up a little from a year ago. Homes in the Clover School District spent an average of ten weeks on the market. The excellent Clover School District remains a strong selling point, motivating buyers to make strong offers. In fact, sellers are receiving an average of 98% of their asking prices, which is a slight increase from 2016. Almost a third of home sales off the lake this year have been new construction.
The little haven of Lake Wylie is an attractive place to live with great schools, low taxes and plenty of southern charm. Because of this, expect the housing market to remain strong and lead us to another record breaking year.
Drew Choate, “The Lake Wylie Man” specializes in Lake Wylie waterfront homes and lots, and other homes in the Lake Wylie community. He is affiliated with Wilkinson ERA Real Estate and has an office in Lake Wylie.