Last year, we were
cautiously optimistic about the Lake Wylie real estate market, expecting
continued improvement while keeping an eye on “shadow inventory” (homes that
had been on the market but withdrawn, waiting for better times). Indeed, we did see continued improvement,
beyond what I imagined! 2012 turned out to be a banner year with ninety-nine
waterfront home sales, more than I ever remember in a single year. Lake Wylie
waterfront home dollar sales were up 53% vs 2011, and non-waterfront dollar sales
were up 36%.
Distressed sales were
still a factor in the market, but definitely declining in number. In the Lake Wylie market, short sales and
foreclosures represented just 11% of sales, down from 20% in 2011. There are still some distressed properties
available for sale, mostly non-waterfront.
Vacant waterfront lot sales didn’t change much last year, with just a small improvement over 2011 in the number sold, and a slight decrease in the average price, to $177,000. Premium lots (priced $300k and above) were again the exception rather than the rule for buyer choice, with most opting for less expensive lots in coves.
Regardless of price,
the increase in vacant waterfront lot sales is a very positive sign for all
sellers. In many cases, lot sales mean new construction, and new construction
spurs life into neighborhoods that have been stalled over the past few years.
As buyers see evidence of people moving into these communities, their comfort
level increases when considering their own purchase plans.
In the waterfront
segment, the big news (besides the sheer volume of buyers) was the buyers’
return to the $700k+ priced homes. While
the bulk of the waterfront sales were in the $500-$700k segment, I was happily
surprised to see a huge improvement in the over $700k category (almost triple
the number of 2011 sales)!
Average price of waterfront home sold in 2012 was about $580,000, up 17% from the previous year. We’re still short of the “heyday” of the $710,000 average sale in 2007, but at least we’re on the right track. A word of caution, though: I’m not saying that the price for any given house has increased 17%. The uptick in price in 2012 reflected a shift to slightly larger homes, newer and higher quality homes, and fewer foreclosures.
Buyers do seem to be
paying a bit more for higher quality homes.
We’ve seen modest increases in the price paid per square foot for homes
in the $400k+ segment. Homes that feature
lots of custom features, architectural details, premium fixtures, gourmet
kitchens and outdoor living areas have begun to sell faster and at higher
prices than in the past few years.
What to expect in 2013? We should see a continued recovery in our local real estate market. I anticipate an increase in listed property, as some of the discouraged sellers from a couple of years ago try again in the improved conditions. With interest rates low and buyer confidence returning, I expect the “lookers” to become “buyers” as they see real estate prices creeping up a bit. It will take several years for the market to make a full recovery, but we’re headed in the right direction.
Thanks for reading my blog. For more information on Lake Wylie real estate, Lake Wylie waterfront homes for sale, and what's available now in our market, please visit my website TheLakeWylieMan.com.
