In the first three months of 2023 our total closed sales, land and homes, have totaled $42,627,390, a decrease of 21.3%, compared to the $54,150,816 over the same three months of 2022. This year, our first quarter closed sales on waterfront homes are down 22.2% (in dollar sales), compared to the same period last year. We have closed 34 this year compared to 52 last year. The average sold price of waterfront homes in 2023 was $957,776, an increase of 19% over the same period in 2022. The median sold price of waterfront homes for the first three months was $741,445 compared to $727,500 in 2022, an increase of 1.9%. The median days on the market for waterfront homes for the first quarter was 7. The average sold price of offshore homes for the first quarter of 2023 was $205,889 versus $243,015 for the same period last year, a decrease of 53.8%. We closed on 18 offshore homes this year. Waterfront lot sales (in dollars) were down 25.2% from last year. All sales numbers are from the Roanoke Valley Lake Gaston Board of REALTORS® Multiple Listing Service and do not reflect private sales.
Across the country, The National Association of REALTORS® (NAR) reports: “Total existing-home sales, completed transactions that include single-family homes, townhomes, condominiums, and co-ops, sank 2.4% from February to a seasonally adjusted annual rate of 4.44 million in March. Year-over-year, sales decreased 22% (5.69 million in March 2022).”
"Home sales are trying to recover and are highly sensitive to changes in mortgage rates," said NAR Chief Economist Lawrence Yun. "Yet, at the same time, multiple offers on starter homes are quite common, implying more supply is needed to fully satisfy demand. It's a unique housing market."
Our inventory of quality homes in the Lake Gaston market continues to be at record lows, especially those waterfront homes priced below $1M.
The Consumer Confidence Index® fell in April to 101.3, down from 104.0 in March. “While consumers’ relatively favorable assessment of the current business environment improved somewhat in April, their expectations fell and remain below the level which often signals a recession looming in the short-term,” said Ataman Ozyildirim, Senior Director, Economics at The Conference Board. “Consumers became more pessimistic about the outlook for both business conditions and labor markets. Compared to last month, fewer households expect business conditions to improve and more expect worsening of conditions in the next six months. They also expect fewer jobs to be available over the short term.”
Mortgage rates have been decreasing slightly over the past month or so. The 30-year fixed rate for a primary residence is 6.799% (APR) and 7.476% for a second home. These rates strongly depend on your FICO score and down payment amount. Additional loan fees are also higher for a second home than a primary home.
And now we have the Biden Administration’s new ruling for mortgage loans that begins May 1, 2023. Newsweek reported, “Homebuyers with good credit scores will soon be facing higher mortgage fees as the Biden administration seeks to close the racial homeownership gap and get more first-time and low-income buyers through the door. A new federal rule could raise the monthly mortgage payments of buyers with good credit scores by over $60 a month, while riskier borrowers will get more favorable terms because their fees will be reduced.”
If you’ve been thinking of selling your Lake Gaston property, wait no longer! The shortage of inventory has persuaded some potential buyers to buy their lake homes sooner. A full-time REALTOR®, who provides written data and gives you the correct value of your home, is important.