2024 Market Review: Smith Lake Waterfront Homes

The Lewis Smith Lake waterfront real estate market experienced notable shifts in 2024. The average sales price for waterfront homes remained steady at $878,761, unchanged from 2023. However, the market saw a 5% decline in the number of homes sold, totaling 210 transactions for the year. This decrease in sales activity coincided with an increase in new listings, with 267 properties entering the market in 2024.

A significant development was the rise in active listings at the end of 2024, which stood at 101, up from 44 at the close of 2023. This increase contributed to an expanded month supply of homes, escalating from 4 months in 2023 to 11 months by the end of 2024. Additionally, the average days on the market for sold homes extended to 140 days, indicating a more deliberate pace in buyer decision-making.

2025 Market Forecast: Smith Lake Waterfront Homes

The Lewis Smith Lake waterfront real estate market is anticipated to experience several key trends in 2025:

• Demand for Vacation Homes: Recent data indicates a decline in demand for vacation properties, with interest in second homes falling below pre-pandemic levels as of April 2022. (Redfin) However, Smith Lake outperformed other vacation home markets in 2023 & 2024.

This trend suggests that the market for vacation homes may continue to face challenges in 2025.

• Home Sales and Prices: The National Association of REALTORS® (NAR) forecasts a 9% increase in existing home sales nationally for 2025, with median home prices expected to rise by approximately 2%. (NAR)

Applying these trends locally, Lewis Smith Lake may experience a modest uptick in both sales volume and home prices, though the specific impact on vacation homes remains uncertain.

• Mortgage Rates: NAR anticipates mortgage rates stabilizing near 6% in 2025, likely establishing a new normal.

This stabilization could encourage both buyers and sellers to engage more confidently in the market, potentially leading to increased transactions.

• Inventory Levels: The increase in active listings observed in 2024 suggests a trend toward a more balanced market. If this pattern continues, buyers may benefit from a wider selection of properties, while sellers might face more competition, necessitating strategic pricing and marketing.

Conclusion

The Lewis Smith Lake waterfront housing market in 2024 exhibited signs of transition, with stable prices but decreased sales activity and increased inventory. Forecasts for 2025 suggest a cautiously optimistic outlook, with potential for growth in sales and slight appreciation in home values, supported by stabilized mortgage rates and improving economic conditions. However, the specific market for vacation homes may continue to face challenges due to declining demand. Both buyers and sellers are advised to stay informed and adaptable to navigate the evolving market landscape effectively.

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 pro’s.