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.

Omigoodness. Lake Wedowee has done it!!!! Earlier this month (like a week ago), the million dollar glass ceiling was broken on Lake Wedowee. A house that was listed for $1.4 million in the Hunter Bend area became the highest sale to date. Congratulations to those involved (especially the seller!!!!) I never saw the house in person, but from the pictures it looked amazing.

It just goes to show you that a property is worth what a buyer is willing to pay for it...  If you want to know what we think a buyer is willing to pay for your property give Advantage Realty a call today.