Lake Wylie Real Estate: 2013 in Review, 2014 Outlook

We’re just a couple weeks into the new year, and already the waterfront real estate market is hopping.  In these two weeks, SIX waterfront homes have already gone under contract, with three of them listed by The Lake Wylie Man.  That’s a heck of a start; I don’t remember this much activity in the cold gray winter before.

Waterfront sales were very strong in 2013 (CMLS source for all data):

Number of properties sold were almost as high in 2012, and dollar sales exceeded 2012 levels (+1% for homes and +20% for land.)  This is impressive, given the record-breaking rain levels in spring/summer of 2013.  Weather definitely affects real estate sales, particularly on the lake.  With fewer people on the lake this past summer, due to the rain, waterfront homes for sale had less exposure than normal, and casual lookers (who often become real buyers) stayed inside.  Still, the market recovery continued, and average prices crept up:

One factor in the improvement of sales price was the achieved sale price being closer to original prices in 2013.  For homes, average sales price was 85% of the original listing price, and 95% of the current listing price.  In 2012, sales price was just 79% of the original, and 93% of the current listing price.  Time on the market (average 278 days) was shorter (a 22% improvement), which meant fewer price reductions.

For land, average sales price was 78% of the original asking price, an improvement from 58% in 2012.  Average days on market fell from 585 days to 388, another very positive step.

Another factor in the improvement was buyers shifting to the more premium properties, both in land and waterfront homes.  The under $500,000 gain shown below was from an increase in “cabin” sales, signifying an improvement in the second/vacation home segment as well as buyers investing in premium lots for new home sites.  Also, the $700,000+ home category had a modest gain:

For waterfront lots under 2.5 acres, there were 14 sales in the $300,000+ range (compared to just 3 in this category in 2012!!).  Recovery did not make it to the Belmont side of the lake, unfortunately.  While there were fewer bank-owned lots in the 2013 marketplace, the impact was still felt.  Average waterfront lot price in Belmont (primarily Reflection Pointe, Woodland Bay and Woodend) was just $131,800 - - compared to $266,800 on other parts of the lake.  In the new Belmont-area developments, lots sold pre-crash to investors and have taken the hardest hits.

Luxury home sales (priced over $1 million) picked up a bit, with six homes sold in that range on Lake Wylie in 2013.  However, this segment is still over-represented in terms of number of listings:

When we look at the mix of buyers vs the mix of listings, there are not enough buyers in the luxury home segment at this time, compared to the inventory available.  Eighteen homes are currently listed for $1 million+ on Lake Wylie; there were just six sales in that segment in 2013.  There are currently 36 homes listed for $700k - $999k, and 23 sold in 2013.  Simply speaking, sellers with homes in the higher priced segments should expect a longer period of time on the market than average, and realize that obstacles (location, condition of home, any undesirable factors) have a greater impact than in situations where demand exceeds supply. 

In the case of ANY sale, some obstacles can be addressed.  Worn carpet can be replaced, paint can be freshened.  In other cases, when obstacles are beyond the seller’s control, the only solution is price.  If the price is attractive enough, buyers will begin to overlook obstacles.

Thanks for reading, and if you’d like to see details of recently sold properties, please visit my website: Recent Lake Wylie Waterfront Sales.  The Lake Wylie Man had an excellent year, with 38 waterfront transactions.  That was 3 times the number of our closest competitor!  Thanks to each of you for entrusting The Lake Wylie Man in your real estate business.

For current homes and land for sale on Lake Wylie, please visit TheLakeWylieMan.com.