Smith Lake Housing Market Analysis – June 2024

Market Overview: The Smith Lake waterfront housing market has shown dynamic shifts in recent months. Following a notable surge in listings at the beginning of the year, the market continues to evolve with new trends and statistics that potential buyers and sellers should consider.

May 2024 vs. May 2023 Market Comparison

In May 2024, the Smith Lake market saw 51 new homes listed, a significant increase from the 32 new listings in May 2023, marking a 59% rise. Despite this surge in new listings, the number of homes sold dropped sharply. Only 16 waterfront homes were sold in May 2024, down 43% from the 28 homes sold in May 2023. This decline in sales amidst a growing inventory highlights a shift in market dynamics.

The average listing price in May 2024 rose to $1,190,000, a 25% increase compared to the $950,000 average listing price in May 2023. Similarly, the average sale price also saw an upward trend, reaching $860,810 in May 2024, an 8.5% increase from $793,740 in May 2023. This rise in both listing and sale prices suggests a continuing demand for higher-end properties, even as overall sales volumes decrease.

However, homes are taking longer to sell. The average days on market increased to 107 days in May 2024 from 77 days in May 2023, a 39% increase. This extended market time, coupled with a significant rise in active listings—from 71 in May 2023 to 178 in May 2024—indicates that the market is becoming saturated with available properties. The price range with the highest saturation rate is in the 1MM – 2MM price range with over 65 properties available and only 5 selling in May 2024.

Moreover, the months of inventory, which reflects the number of months it would take to sell the current inventory at the present sales pace, rose dramatically. In May 2024, the months of inventory increased to 11 months from a mere 2.5 months in May 2023. This substantial increase underscores a shift towards a buyer’s market, where the supply of homes outpaces demand, providing buyers with more choices and potentially better negotiating power.

Key Insights:

The substantial increase in new listings and active listings in May 2024 compared to May 2023 highlights a shift towards a more abundant supply of homes on the market. This increase in inventory levels indicates an inevitable shift towards a buyer’s market. The decrease in the number of homes sold by 43% year-over-year reflects a slower pace in buyer activity, potentially influenced by economic factors such as interest rates and inflation.

Despite the decline in sales, the average listing price has risen by 25%, and the average sale price has increased by 8.5%. This discrepancy suggests that while more high-end homes are being listed, there is a growing gap between listing prices and selling prices, indicating potential overpricing in the market.

Homes are taking longer to sell, with the average days on market increasing by 43%. This extended market time, coupled with the surge in listings, suggests that the market is adjusting to the higher supply levels.

2024 Market Forecast

The Smith Lake waterfront housing market is currently experiencing significant changes, with an increase in listings and a decrease in sales leading to higher inventory levels. Despite the short-term challenges, the long-term outlook remains positive, with anticipated price rebounds providing opportunities for savvy buyers.

Expectations point to a leveling off in waterfront housing prices through 2024, with value increases potentially lagging behind inflation rates in the short term. However, the coming year promises a rebound, with home values anticipated to surpass inflation, highlighting a golden window for buyers. Procrastinators risk missing out on prime buying opportunities before an anticipated price ascent.

Conclusion

The Smith Lake waterfront housing market is undergoing notable changes, with a marked increase in listings and inventory levels, coupled with a decrease in sales. This evolving market landscape presents both challenges and opportunities for buyers and sellers.

For those looking to buy or sell a home on Smith Lake, partnering with Lake & Coast Real Estate Co. offers unparalleled expertise in the waterfront housing market. Our knowledge and marketing acumen are ready to guide you through the process with confidence. Start your search or sale with Lake & Coast, the waterfront property experts.