From a whisper to a scream

From a whisper to a scream - September Market Update

We have talked about how things are changing on Lake Wedowee and the changes are becoming more evident. There are two dozen homes currently listed that have been reduced in price recently. Some have been drastic reductions (as much as 17 percent) while others have been a gradual decrease.

These numbers are screaming one thing at me and whispering another. On first look you would think prices are adjusting because they were too high in the first place (scream), then one could think all these people are beginning to realize their properties are not attractive to buyers (whisper).

In reality it is a mixture of both. Half of the homes have been sitting on the market for more than five months and have not been sold. Houses have been selling during this time frame, matter in fact 27 homes have sold since April 1. The kicker is the average sell price for those 27 homes is $385,266 and the current average price for the homes that have been reduced is $512,675. Again there is a scream and a whisper. The average buyer is not interested in $400,000 plus lake homes (scream), but many sellers and agents continue to list properties with over inflated prices in a market that won't support their asking prices. (whisper but becoming louder everyday).

There are many homes on this lake for sale worth more than $400,000 but the majority of the buyers are looking for less than $400,000. Actually only nine homes have sold for more than $400,000 this year compared to the 30 homes that have sold for less.

The real estate market is changing nationally and Lake Wedowee is not immune to it. The real estate frenzy of the last few years has softened. In 2005, the seller could set the price and even entertain multiple offers before it sold. That's not the case now. Homes are now sitting on the market for a longer period of time and their is a large increase in the number of homes for sale. The average number of sales (buyers) has stayed the same but we now have more builders, more developers, more agents and more sellers competing for these buyers .

Lake Wedowee has experienced a boom like other areas in the county in the last few years, many have profited over the tremendous increased values of the last few years but the past is in the past. On the national level home sale prices were down 4.3 percent in August and the home inventory is at an 18-year high. We have now hit a plateau and prices have stabilized. No more flipping properties for 50% to 100% profits but stable pricing with a slight increase in the average sales price from 2006. It is a more balanced market for buyers and sellers alike.

To sell a house in today's market, hope is not lost. Like we have said before a house is only worth what a buyer is willing to pay for it. This summer has been an interesting one in that more new homes have sold than existing. Why is this? Builders negotiate, offer buyer incentives stage the house to look its best and do whatever it takes to get it sold. Those who want or need to sell their primary home or second home need to sit up and take notice of what is selling and why. Do not leave it to chance, do your homework. You must price competitively, prepare your home for the market (make it look its best) and enlist the help of a good agent to market your property aggressively to buyers and other agents.

You need an ALL STAR when moving these days

Recommendation by: Ron Winslett

We have recommended many goods and services in the Lake Wedowee area over the last year and we always love to hear from you. A past client (Mr. Ron Winslett) came to us with the idea of recommending a mover, we jumped on the idea as long as Mr. Winslett gave us his personal account of the services he received from All Star Movers. We hope you find the information useful. Also if you have any future ideas for our "May We Recommend" section, please let us know.

It is not too often we step out on limbs and make recommendations on Service Companies, but in the case of "All Star Movers", Winston, Georgia (also licensed in Alabama), and Mr. Ron Motes, this is the exception.

Unfortunately over the span of my 36 year career, I had to move my household far too many times. And, in each of those times, there was always some negative experience. Whether it be major or small, there is no doubt something bad is going to happen. However, in the case with our last (and final move of our lives), we contracted All-Star Moving, Mr. Ron Motes, and Company to move our household from Lake Wedowee to our new home in Carrollton, GA.

Simply put, from beginning to end; from the initial visit and estimates which Mr. Motes accomplished personally, until the last box was removed from his high image trucks, this move was flawless.

With some much interest in homes and in Real Estate in general between Randolph County and Carroll County, GA, there is no doubt, in our minds, "All-Star" should be your first call. Extremely courteous loaders and the crews which handled our household goods and may have been the "Best" your moving dollar can buy. "All-Star's" motto is "22 Years of Reliable and Dependable Service. This certainly was our experience.

For further information or to possibly contact their Company, please call: Mr. Ron Motes General Manager All-Star Movers Winston, GA (770) 577-2142 or Ron's Cell: (770) 316-2340

Word On The Street

The Word On The Street...

It is a Done Deal!

by: Leisel Caldwell

If you have been following our story on the "Big" Developer coming to Lake Wedowee you will be interested to know the word on the street is... it is a done deal. We have been told by more than one source Alabama Power and "Mr. Big" have come to terms and to expect an announcement by the end of the year.

So, what does this mean for our area? If true, "Big" things are sure to come, but we all must realize the process of any major development takes time (years). Just the sheer excitement of any such announcement will have many expecting the prices to sky-rocket. I feel those who want or need to sell in the next 2 years may be disappointed with this assumption. The real estate market is driven by what the buyers are willing to pay for the available properties for sale, supply and demand. See Kelly's Market Update for more information on what the average lake buyer is currently willing to pay.

We are currently in a stabilizing market with property values holding their own, inventory of available properties climbing and the number of buyers entering our market staying at about the same number as we have seen in years past. The major jump in values we saw from 2003 - 2006 in real estate sales is not going on in the 2007 market. Yes, listing prices are continuing to escalate without rhyme or reason, but the properties that are selling are holding their own with the 2006 sales price averages.

The impact of a major multi-use development in our community will first be felt by the influx of a large number of contractors and construction workers. Rental properties will be in high demand. Sub-contractors and construction workers will have employment opportunities. More sales for restaurants, fuel providers, construction material suppliers, etc. and more sales tax will provide an economic boost for Randolph and Clay Counties. As the development progresses there will be many full time employment opportunities.

In my opinion, once the anticipated announcement is made, it will have an immediate influence on bringing more buyers to our market. Once "Mr Big" has something to sale and they begin their marketing efforts we will see major increases in the number of buyers in this market. Again, with the supply and demand, we will see large increases in values on prime waterfront property. Please note, I do not see major price changes for low and mediocre water front quality properties. They will continue to see increases but only moderately.

Our area will have a great opportunity to prosper in many ways and with such a development we should expect many changes. This developer is likely to become the largest employer for the county. Our local leaders need to embrace this new development. They need to offer a helpful hand and be open to new ideas. They also need to have a watchful eye to protect us and our assets.

We all get excited about the prospect of recruiting major industry, well folks, this is major industry.