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.