What kind of market is Lake Wedowee, Ala.?

Many are wondering what is wrong with our Market...

Everyone who knows anything about real estate will tell you real estate is “local”. Just exactly what does that mean? It means what is being bought and sold in New York City, New Orleans or Miami has no impact on what is being bought and sold in Wedowee, Alabama.

Okay, what does influence the local market? The two most important factors are:

#1 The number of homes for sale (inventory) and the number of buyers currently looking at those homes

#2 The price buyers are willing to pay or can get financed

Comparable sales for the last 6 to 12 months is the best indicator of what buyers are willing to pay. Please know we are not talking about the list (asking) price but the sold price! Comparable sales of like kind properties help us to know what a buyer is willing to pay for a typical size and style house or lot located in our current local market. An appraiser will use comparable sales to arrive at an educated opinion of market value for a property being sold or financed. A lending institution or an astute buyer does not want to pay or finance a property for more than what it can be sold for in the current market.

When we have more buyers than we have homes for sale it is called a “sellers market” if we have more homes for sale than we have buyers it is called a “buyers market”. With a seller's market, prices are increasing and good listings sell quickly. In a buyer's market prices are subject to decrease and the days on the market are for longer periods of time. We are currently in a buyer's market on Lake Wedowee in most price ranges.

Just a few years ago it was possible to purchase a nice cabin or home with what we considered “good water” for under $250,000. We had an abundance of buyers looking for lake lots from $75,000 to $200,000 and lake homes in the $200,000 to $400,000 price range. It was a seller's market for those price ranges. So what happened? People got greedy. Sellers got greedy, developers got greedy, agents got greedy and the prices were pushed.  And, then pushed some more where now they are right out of the typical buyer's reach.

There are other factors stalling our market too:

Poor construction – no building inspection or building code

Lack of planning for quality growth

Real estate agents competing with buyers and flipping properties

Lack of quality subcontractors and service providers

Bad business practices - lack of ethics - distrust

Lack of hospitality and cooperation

It was fast and furious for a while and the buying was easy. I think in many cases too easy. Our market is now in a time of adjustment, even the good properties are slower to sell.

However, the good news is there will always be those who need or want to sell and those who need or want to buy. The most important person in today's market is the Realtor who knows their market, is honest, trustworthy, loyal, listens and has a true desire to help their customers and clients.