Lake Wylie Waterfront Sales Update
Halfway through 2019, sales are picking up on the lake. That is encouraging, considering the waterfront market’s year to date closings are lagging about 22% behind 2018:
Sales trends for waterfront homes and lots
In the chart above, the solid bars represent number of waterfront homes sold on Lake Wylie in the first half of each year, and the striped bars represent number of waterfront lots.
First half sales in 2016-2018 exceeded pre-recession sales, and the market softened in early 2019. Off the lake, sales are still increasing over last year by a small margin — but there are some key differences in the waterfront and non-waterfront markets:
Considering the relatively small number of waterfront properties, the “softening” in the market that we’ve seen this year may be a simple fluctuation in the numbers, or could be a return to “normal” after three particularly robust years.
What has continued into 2019 is an increase in the amount buyers are spending for waterfront properties. Average prices are up for both waterfront homes and lots:
The blue line in the chart above tracks average home prices on Lake Wylie over time. In 2019 to date, the average home price is just over $750k, about the same as last year. Waterfront lots average about $260k, again level with last year. Over the past five years, average prices have climbed for both waterfront homes and lots.
For waterfront homes, the mix of sales has changed significantly. Whereas five years ago, more than 40% of sales were lake homes priced under $500k, now that segment represents just over 20%. Half of the sales exceed $700k, a segment that represented about a quarter of sales five years ago:
In the chart above, percent of sales by price segment is displayed over time, from 2015 to 2019 year-to-date. The blue segment represents homes priced under $500k, the orange segment represents $500-$699k, the gray $700-$999, and the yellow represents waterfront homes over $1mm.
The $1mm+ segment has claimed a bigger piece of the pie each year, along with the $700-$999. Lower priced properties have declined in sales. Part of that is due to supply — with number of listings in the lowest priced segment falling by more than 50%. Lake property is not “in reach” for as many buyers as it used to be.
Demand for lower priced properties still exceeds supply. Moderate priced homes in desirable locations and “move-in-ready” condition continue to sell quickly. Average time on market for a waterfront home is about four months. While that is long compared to the two months it takes to sell a non-waterfront home (about 2 months on average in our area), it is a vast improvement over 5 years ago (about 7 months average time on market.)
Sales by Area
Belmont had the most dramatic gain in sales in waterfront homes in 2018:
In the chart above, the blue bar represents number of homes sold in 2017 by area, and the red bar represents 2018 sales. Below the chart is the average price by area, and the number of million+ dollar home sales.
Belmont had a 65% increase in number of waterfront homes sold in 2018 compared to previous year, along with the second highest average price across the lake. There were 7 home sales over $1mm, including homes in Reflection Pointe, Woodland Bay, Misty Waters and McLean. Mid-priced neighborhoods such as Forest Cove and Paradise Point also performed well.
Lake Wylie/Clover also showed an increase in 2018, capturing the second largest number of Lake Wylie home sales (behind Charlotte). One third of all Lake Wylie home sales are in the Clover school district (Lake Wylie/Clover/York combined).
Tega Cay/Fort Mill dropped off considerably in 2018. Rock Hill, the smallest segment on Lake Wylie, also has the lowest average price and lowest representation in the luxury market.
Seasonality of Sales
Sales followed typical Lake Wylie seasonality in 2018. A three year average portrays the typical sales cycle for waterfront homes:
Sales in the first couple of months of the year are typically low, and do not accurately reflect the pace of the year. New listings generally pick up in February, which contribute to sales increases that begin to build in the spring months. Peak season is generally April through August, and then sales begin to drop off in the fall and winter months.
If your property is currently on the market, take advantage of the slower activity in the winter to respond to feedback thus far. Are there repairs that need to be made, or improvements such as painting, decluttering, landscape touch ups? Do price adjustments need to be made before we enter the primary sales season? If you have questions, please let me know!
If you’re considering listing your property for the spring, let’s get the ball rolling. Let me help you with recommendations for steps to take prior to listing, recommended pricing, and marketing to ensure that we have the best chance to sell your property quickly and for the highest price.
If you’d like to see details of recent sales, please visit my webpages Recent Waterfront Home Sales and Recent Waterfront Lot Sales. I look forward to talking with you soon!
|*All information provided is deemed reliable but is not guaranteed and should be independently verified. Copyright by The Lake Wylie Man, all rights reserved.|