Lake Wylie Waterfront Sales Update thru 7/31/08

As summer begins to wind down, it’s a good time to take a look at what’s happening with Lake Wylie real estate sales. With all of the media headlines, it should come as no surprise that the waterfront real estate market is challenging this year! Despite the decline in sales overall, there are a few positive news items to report:

• Average price for homes on the lake are actually UP year to date: $834k vs $721k in 2007! (That doesn’t mean that the price on the average house has jumped 15%, by the way - - the increase comes from more sales at higher price points.)
• To date in 2008, eight homes have sold for over $1 million. That compares to six homes during the same period in 2007.
• 27% of waterfront homes sales were in the $1mm+ category in 2008 so far. In 2007, only 11% of homes sold had sales prices over $1 million. Likely explanation – the mortgage crunch is hitting the mid-market ($500-999) the hardest.
• Waterfront lot sales in new developments (Hands Mill, Somerset at Autumn Cove) are hitting the radar. Four lots have closed in Hands Mill, with a couple more pending. Several lots are pending sale in Lake Wylie’s new Somerset at Autumn Cove development.

Now that I’ve dazzled you with the good news, I’ll present the data that is not quite so rosy. In fact, year to date sales for waterfront homes are down 55% year-to-date, and waterfront lots are down 60%.

What we’re seeing on the lake this year, mainly, are “bargain hunters”. Aggressive price cuts are being seen both on and off the lake. I was driving through a new development (homes in the $400-$500’s) a couple of weeks ago, and signs were everywhere advertising “$50,000 price reduction!”. On the lake, homes this summer have sold for 84% of their original asking price. In some cases, homes were simply priced too high at first. In other cases, sellers needed to move the property.

During June and July 2008, 16 waterfront homes sold on Lake Wylie. Those homes had been on the market for an average of 217 days, and sold for 84% of original price. Contrast that with 2007, when 25 homes sold, 90% of original price, and days on market just 104.

For undeveloped waterfront lots, the story is much the same. Year-to-date, lots are selling at just 81% of original price, and have been on the market an average of 420 days, significant declines in performance vs previous year. Only two lots sold in June/July of 2008, for 75% of original price. The waterfront lot market has been affected by a cutback in sales to builders (as their current inventory is too high), tightening of the mortgage market, and general economic factors.

Conclusion? If you need to sell, price your property as aggressively as you can. It helps if you price it right coming out of the chute. Properties that sold for less than 90% of original price were on the market an average of 254 days. Properties that sold for more than 90% of original price were on the market just 104 days (less than half!).

If you want to buy, there are some excellent values on Lake Wylie right now. Call me or visit my website for a complete selection.

To read more blogs about Lake Wylie real estate, please visit my website, http://www.thelakewylieman.com/! Call David Coone at 803-493-2924

Source: Source for chart data: Charlotte MLS, sales as reported 1/1/08 thru 7/31/08.