Smith Lake distinguishes itself with its pristine, clear waters and breathtaking shoreline, setting it apart from other lakes. Its advantageous location near the I-65 corridor ensures easy access from major cities like Birmingham, Huntsville, Nashville, and Atlanta. At Lake & Coast Real Estate Co., our specialized knowledge of the waterfront housing market empowers us to navigate the complexities of purchasing or selling these coveted properties along the shores of Smith Lake. Start your search or sale with Lake & Coast.

Smith Lake Housing Market Analysis:

At the onset of 2024, the real estate market witnessed a significant surge in the listing of new properties. Between January and March, a total of 160 new homes were put up for sale, marking a near tripling compared to the same timeframe last year. Conversely, the number of homes sold during this period decreased by 20% year over year. This shift has led to an increase in the available housing supply, rising to an 11-month supply from the 7-month supply recorded at the close of 2023. The largest supply of homes is in the 1MM – 2MM price range with 61 properties available for sale. With only 8 homes selling in the 1 million to 2 million price range in the first quarter, inventory could remain high for the foreseeable future. Should this trend persist, the market could transition to favor buyers much sooner than anticipated.

2024 Q1 Waterfront Housing Market Insights

• Trend in Listing Prices: Over the last 12 months, there has been a notable increase in the average listing price of waterfront homes on Smith Lake, escalating to $1,200,000 in the first quarter of 2024 from $930,800 in the same quarter of the previous year. This sharp rise can be attributed primarily to a surge in listings of more upscale homes rather than an appreciation in the overall home values.
• Sales Performance: The first quarter of 2024 saw a decline in the number of waterfront homes sold, with 32 homes changing hands, representing a 20% decrease from the year before. The average sale price dipped to $614,950, marking a 16% reduction from the previous year, with homes selling on average 5% below their listing price. The growing gap between rising listing prices and falling sales prices indicates a potential mismatch between available properties and market demand.

• Inventory Overview: The year began with 62 properties listed for sale, ballooning to 160 active listings by the end of March 2024. The rapid increase in listings, surpassing sales, may hint at a forthcoming stabilization in prices. Continuing this trend could tilt the market more in favor of buyers.
• Market Activity: Homes on the market sold more quickly, with the average time to sale dropping by 8% year over year to 88 days for sold properties. However, the entry of numerous new listings is expected to increase the average time on the market significantly in the second quarter, as the market absorbs the recent spike in available properties.

Factors Influencing Sales – The pace of sales is shaped by current interest and inflation rates, which, though lower than the previous year, alongside electoral anticipation, have led buyers to adopt a cautious stance. This wait-and-see approach could influence buying decisions and market momentum for the remainder of 2024.

2024 Market Forecast: Expectations point to a leveling off in waterfront housing pricing 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.

Selling or buying a Smith Lake Home? Partner with Lake & Coast Real Estate Co. for unmatched expertise in the waterfront housing market. Our knowledge and marketing acumen stand ready to guide you through the sale process with confidence. Start your search or sale with Lake & Coast, the waterfront property experts.