2021 KIM and LIN LOGAN REAL ESTATE MID-YEAR MARKET UPDATE
THE MARKET IS ON FIRE!!!
We hope this 2021 market update finds you and your family in good health and spirit! Our weather has started heating up as summer is here and the Lake Oconee real estate market is and has been HOT as well! The pandemic accelerated several demographic and market trends that were already in place: a shift to working at home as opposed to going to an office, people wanting to escape the city and all the problems there, a shift to warmer climates, people choosing where the want to live based on lifestyle/amenities and a very robust stock market. All of these trends have led buyers to our market over the last year in UNPRECEDENTED NUMBERS. Our market began heating up in early 2020 and the increase in demand has accelerated ever since. Last year we began running out of homes to sell these buyers in many sub-markets, and currently, the amount of available homes (supply) is far less than the amount of buyers (demand). Consequently, there has been an increase in prices/home values, much shorter time to sell (many homes selling before or immediately when they hit the market) and sellers are negotiating very little if at all on their asking prices. In some cases, homes are selling for more than asking price. VERY EXCITING TIMES FOR HOME SELLERS! The lot market has also gotten better as the number of available homes declined. Buyers have been purchasing lots at a higher pace than last year and looking to build. On the building front, costs have been going up throughout the county and also in our market. Materials costs have soared and there is a shortage of workers resulting in higher construction costs and longer building times. As you might expect, this has also made the cost and time to remodel go up as well.
All in all a very busy and exciting time at Lake Oconee and this is the best market (HIGHEST DEMAND) Kim and I have ever seen!
As you can see from the statistics below, the market has been extremely “hot” and home sales in particular have been very strong. Our short term forecast at the mid-point of 2021 for the market is for demand to remain strong. There is nothing to indicate that the trends that have caused our market to go up will diminish in the near term. We often get asked if we think our market is “over-priced” and if we are at the “top”. While no one knows for sure, we do know if you smooth out our market valuation over the past 30 years, our current valuations are not significantly above the 3-4% historical appreciation line for real estate. In other words, our values are in line with historical real estate appreciation and do not indicate we are over-priced. If you don’t believe it, just compare our prices to other resort areas in the southeast.
Bottom line = we feel now is a great time to sell and also to buy in our market. It is critical that you utilize someone who knows the market and current valuations (LIKE US!) to help you get top dollar for your property if you are a seller, or to help you find available properties quickly if you are a buyer!
Here is a quick 2021 mid-year market comparison with last year:
Jan-May 2020 Jan-May 2021
HOMES SOLD 436 541
AVERAGE SOLD PRICE $386,000 $599,000
LAKE HOMES SOLD 129 158
LAKE LOTS SOLD 19 59
GOLF COMMUNITY HOMES SOLD 89 206
GOLF COMMUNITY LOTS SOLD 10 32
TOTAL REAL ESTATE SOLD $185,000,000 $409,000,000
As always, please contact us with any questions or if we can help in any way.
BEST WISHES AND BE SAFE!
KIM AND LIN LOGAN REAL ESTATE