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.  

Lake Wylie Real Estate: 2012 in Review, 2013 Outlook

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.

 

Lake Wylie Waterfront Sales Update - thru Oct 2011

As the holidays approach, we’re entering what is traditionally our “slow season” for Lake Wylie waterfront sales. October was a big month for closings, with 9 waterfront homes and 2 waterfront lots. Three of the homes and both of the lots were distressed sales. Taking a look at year to date and pending sales, it looks like we’ll end up with about a third of the waterfront home sales being short sales or foreclosures (same as last year), and about half of the lot sales being distressed (up from 36% in 2010). So distressed sales are still having a big impact on our market and pricing in the marketplace.

I’ve personally handled quite a few distressed sales the past couple of years, not because I’ve pursued them, but because they are such a factor in the waterfront market and I’ve just had to help some sellers as well as buyers through the process. As a Realtor, I get several emails a day “recruiting” me to take classes or join referral services as a “short sale specialist”, but I’ve found that the old-fashioned way of on-the-job experience works just fine. So feel free to call if you have questions or need guidance on that subject.

I’m happy to report that 2011 sales are running quite a bit ahead of 2010, in number though not in dollars. Waterfront home sales are up 8% in number vs year ago, and waterfront lots sales have more than doubled. However, the average price for waterfront homes sold is just $482k, down from $656k in 2010, and waterfront lots have averaged $168k, down from $251k. When we look at sales for waterfront homes by price segment over the last few years (see chart above), the story is clear.

Almost 80% of waterfront home sales have been under $600k in 2011. In 2007/08, the majority of sales were over $600k, but that began to shift in 2009. Part of the shift is due to a decline in price, the economy, and lenders tightening up. We’re also seeing a shift in buyer preference towards more moderate sized (and priced!) homes. Check out details about recent Lake Wylie waterfront sales. If you have questions about this data or Lake Wylie waterfront sales, please call The Lake Wylie Man.

David Coone, The Lake Wylie Man, consistently sells the most Lake Wylie real estate. Visit his website or give him a call at 803-493-2924.

Hesitating on Renovating?

If you're thinking of renovating your home simply for the appeal to a potential buyer, you may want to think twice. You may be on the verge of spending thousands of dollars, countless hours, and experiencing an increase in blood pressure for an "upgrade" that may not be considered attractive to the next homeowner. Drop the hammer and absorb these tips from Yahoo Finance and Google (because, well, Google knows everything) before you invest more than will be paid off.

1. Swimming pools. While the image of lazily floating in your own pool accompanied by your favorite cold beverage may be swimming around your thoughts, potential buyers may not share your same dream. Parents of small children and owners of pets may cringe at the idea of such a hazard in their backyard. However, if you already have a pool, keep it in immaculate condition and enjoy it during the summer heat!


2. Over-renovating for your neighborhood. If your home is embellished with expensive upgrades to the point of standing out from other houses in the area, prospective buyers may not jump up and down at the opportunity to pay higher taxes, higher maintenence costs, or being considered "snooty" by the new neighbors.


3. Extensive Landscaping. The new owners of your home may appreciate your hard work in beautifying your property; however, they may not want to pay for it or even like it. Save yourself the time, cost, and hassle. Leave the landscaping to the new owners.


4. High-end Upgrades. Imported tiles, Persian rugs, hand-painted wallpaper, Jacuzzis, etc. should be left unpurchased. Amenities such as these may strike your fancy but turn off prospective purchasers. Stick with the home's general decor and skip the expensive chandeliers.


5. Wall-to-Wall Carpeting. If you've got wood floors and you're considering installing carpet, think again. The new homeowners will do with the floors as they wish, and it's much easier to cover up wood flooring than rip up carpet. If you already have carpet floors, consider having them steam-cleaned and any stains removed. Wooden floors should be sanded down and treated with a new coat of shine.


6. Invisible Improvements. New plumbing or a new HVAC unit may be necessary for your home, but potential buyers may not appreciate what they can't see or what they could've picked out themselves. Invest in saving time and money instead of unimpressive additions to your home.


7. Building or Upgrading a Deck. Homeowners appreciate a good deck, but often times they wish to do the rebuilding or furnishing themselves.


8. Patio Frills. Water fountains, fish ponds, and gazebos are pleasing to the eye, but may not help finalize a sale. Not everyone is into the multi-purpose playground scene and certainly won't want to pay for it.


9. Home office. If you convert a bedroom into a home office, that's one less bedroom your home is listed for. Potential buyers can't see past the office setup and will be less likely to purchase your home.


10. Concrete Patio. Concrete is almost guaranteed to crack and is nearly impossible to fix. Plus, it's reflective of light and can cause a harsh glare.

Beware of all the tantalizing opportunities to improve your home if you're trying to sell it. Most likely, your upgrades will not pay themselves off and you'll be stuck footing the bill and not enjoying the improvements. So sit back, relax, and let the work you've already done do the talking (and selling)!

Thanks for reading my blog! Make sure you visit my website at TheLakeWylieMan.com for more information about Lake Wylie homes!

Waterfront Sales Report - December 2010

Here's hoping everyone is enjoying the advent of the holiday season! I'm hoping the new year will usher in a real estate market recovery. We are seeing some evidence that it will, albeit a slow recovery. Local real estate sales are up over the past two years, both on the lake and off. Check out the stats on the graph above!

We are continuing to work through a lot of distressed sales; about 35% of waterfront sales this year have been foreclosures or short sales. Market prices have adjusted accordingly, and buyers are responding.

The market remains VERY tough for vacant lots. Through November 30, just 17 lots have sold on Lake Wylie (that compares to 42 in '07). Average price this year is $241K, down about a hundred thousand dollars from the market peak in '06/'07. Over 80% of this year's sales have been under $275k, with a third advertised as distressed sales. (Key word there = advertised. Many sales have in deed been "distressed" without being officially labeled as such.)

With about 200 lots currently listed on the MLS, and about 50 of those priced under $200k, buyers become quite overwhelmed sifting through the choices. I get many calls about these lower priced lots, only to have the buyers be disappointed and evaporate when they see the quality of what's available at those prices. Be it shallow water, close proximity to large power lines, or steep topography, most lots available at the super low prices have issues that discourage buyers. There are a few hidden gems, though, and it is very important to consult with a waterfront specialist who understands lake regulations, building options, and ways to maximize the value of waterfront property.

If you'd like to see a list of actual waterfront property sales and prices for 2010 to date, please visit Recent Lake Wylie Real Estate Sales. Visit my website for information on Lake Wylie foreclosures and other valuable waterfront resources to help you in your search. While I sell real estate on and off the lake in Lake Wylie, Fort Mill, Rock Hill, Charlotte and surrounding areas, I specialize in waterfront property sales. I can help you find the lot or home that is best for YOU.

Thanks for reading!

Virtual Drive By's in Real Estate

Technology is certainly changing the world of real estate. The National Association of Realtors reports that 84% of consumers will use the internet in finding their next home. I believe that, as I find my website traffic for The Lake Wylie Man increasing day by day, and many of my customer inquiries and phone calls coming from the internet.

Another real estate agent in our office, who loves to keep us up to date on fun, helpful, and sometimes silly diversions via email, sent a link to Google's Virtual Turnpike. This is a site where you can type in any address in the U.S. (and several other countries as well), and see a photographed street view of the location. You can see traffic conditions, surroundings, etc. as you pan around and even do a virtual drive-by.

I thought it would be cool to add this link to my property web pages for Lake Wylie Real Estate for Sale, until I typed in a few addresses of my listed properties, just to take a look. Many of the lake properties (especially in more remote areas, as some lake properties tend to be), the Virtual Turnpike has not photographed yet.

Those that did have photographs were subject to lighting conditions, timing, and things that weren't always optimal to portray the property accurately. For instance, one address was taken when there was a new house being built across the street. The road was muddy from construction vehicles, and the Port-a-John in the scene did absolutely nothing to highlight the charm of the half-million dollar home I am trying to sell!

Another property had pictures taken not long after the home was completed, and lots of bald patches in the lawn (since grown in thanks to the irrigation system and landscaping efforts of the seller!) didn't present the property in the best light.

Yet another home had a shot on the street of a pickup truck driving by. The truck was probably 20+ years old, had rust spots and looked pretty rough. Not typical of the neighborhood, mind you, but there it was, marking the area's personality until an update is done, whenever that might be! One address had pictures taken on garbage pick-up day, and trash cans (with white trash bags sitting atop, no less) graced the curbs . . . again, not the prettiest picture!

So - - virtual drive by's - - a fun diversion, a handy tool for a slice of life . . . but one to be taken with the realization that the photo may capture things that are not permanent fixtures! Of course, in real estate photography, we do attempt to show a property in its very best light. We try to take pictures when the sun is "just so", lighting the best angle (though that's not always possible). We sometimes move the trash cans out of the way, if they're in the shot. We really, really try not to have any Port-a-John's in the photo.

Bottom line, though a vast majority of people shop for real estate on the internet, very few BUY real estate without first visiting the property in person. I can't imagine that changing! And as you will realize, that ACTUAL visit makes all the difference.

Thanks for reading my blog on Lake Wylie real estate. For more blogs about Lake Wylie waterfront and living in Lake Wylie, visit my website.

Hi everyone –

Looks like we’re in for another messy weekend, so I hope you have plenty of milk and bread. With the recent weather, property showings have been off a bit, but I expect that to pick up as soon as the sun comes out. The Mid-Atlantic Boat Show runs next week, and that traditionally starts people thinking about spending the summertime on the lake.

I’m encouraged over a couple of things so far in 2010. One, my website activity is at an ALL TIME HIGH. Incredibly, January activity dwarfed the previous all time high (July 2009), and more than doubled January 2009. This activity should be an indication of an increase in buyer activity, which is what we want!

In January, four waterfront properties sold (see Recent Lake Wylie Waterfront Sales for details). Two were classified as short sales or foreclosures (High Point and Johnson Road), and the other two, while not advertised as distressed sales, sold for less than 60% of their original asking price. While that isn’t particularly good news for sellers, what IS good news is the price point - - one property at $750,000, and one at $1.6 million. If you recall, it was late summer last year before we saw our first million dollar sale on the lake. So that’s another encouraging sign.

One Lake Wylie waterfront lot sale was added to the list - - a main channel lot in Reflection Point which sold for $188,000 in December. The sale wasn’t recorded in MLS until late January, which is why we didn’t have that one on our year end report. It is almost unbelievable that HALF of the waterfront lots that sold in 2009 were under $200,000. Several of those were actually very nice lots. We haven’t seen prices that low in years, but again the distressed sales are playing a big part. It’s not easy to manage buyer expectations in this market.

So, once again, the message to sellers is “Patience”. It’s a tough market, but there are some positive signs on the horizon. Thanks for your consideration, and have a good weekend.

For more information on Lake Wylie foreclosures and Lake Wylie real estate, please visit my website, TheLakeWylieMan.com.