“Second home market regains traction”
Do you read the Atlanta Business Chronicle? If so, you probably saw Kim featured in the Residential Real Estate section of the paper on the 28th of October. Kim was interviewed by the paper last week to discuss the current second home market at Lake Oconee. If you subscribe to the paper you can view the article on their website (http://www.bizjournals.com/atlanta/news/2016/10/28/second-home-market-regains-traction.html). If you don’t subscribe to the paper, here is the portion of the article where Kim talks about the Lake Oconee market!
“That’s also the case in the Lake Oconee area, according to Kim Logan who, along with her husband Lin, own Kim and Lin Logan Real Estate in Greensboro.
“Luxury homes in the $800,000 or more range generally are staying on the market for nine or more months,” Logan said. “However, for buyers looking to purchase luxury homes they can find some great deals. Some sellers in the high end of this market ($1 million and over) can afford to take a loss so they can move on to the next phase of their life. …There are drastic reductions in the price of lakefront lots. For example, lots that once were $500,000 are now selling for half the price.”
There are several reasons luxury and vacation home buying is in a slump, according to Logan.
“Baby boomers are now purchasing homes to retire in and they want something smaller, with less square footage — because of this we are seeing less sales in luxury homes,” Logan said. “We are not seeing as many people purchase second homes or vacation homes, per se. What we are seeing is a lot people retiring within the next five years or families with children graduating and going off to college. So, while they are purchasing the home now as a second home, after a few years they plan to retire in that home.”
Another issue is people are more concerned with being debt free, Logan said, which means they are selling their million-dollar homes and moving into smaller, less expensive homes. “They choose a smaller home in the $500,000 range and save the money they would have spent and put it into savings,” she said. “It’s almost like we meet the same clients every day: people in their 50s and 60s looking to move into a smaller home.”
Because of that, however, the market for houses under $1 million is doing great and inventory is moving quickly, Logan said.
“We are hardly seeing any foreclosures or short sales. Lakefront homes between $300,000 and $700,000 are staying on the market for a shorter amount of time and in some cases, if priced right, are getting multiple offers/backup offers,” Logan said. “When people come down to view lakefront homes in this price range and don’t put in an offer that day they will find that by their second visit the house will be gone. Some of our clients are on their third and fourth choices.”
However, homes and lots located in the golf course communities without water frontage are still struggling to recover from the recession, she said.
“I believe that this is mainly because of built up inventory through the years,” Logan said. “Developers are constantly opening new sections and offering such great incentives that it is hurting the resale value of the other homes and lots in the area who can’t offer these types of incentives. The only thing these sellers can do is lower the prices of the property. What does this mean for the buyer? It means that it is still a buyers’ market and there are great deals on these properties.”
Logan is also seeing an increase in farmland or homes with acres. “People are looking to get away from the hustle and bustle of the city life and wanting a quieter lifestyle,” she said. “We are seeing a lot of movement in farms in the Madison area as well as the lake area.”
Article from Atlanta Business Chronicle – Contributing writer Janet Jones Kendall – October 28th, 2016