Home sales on the lake are booming, but you may be wondering how has the pandemic affected Lake Lanier home sales. Let’s talk about it!
Properties are getting multiple offers above asking price and buyers are getting more and more creative by doing things that have not been seen in the past such as removing appraisal contingencies and buying homes as-is. It’s a seller’s market, and buyers are fighting stiff competition to own their dream homes.
Lake Lanier sales have been greatly affected by Covid. In 2020, there were 533 homes sold on Lake Lanier with a 5 month supply of homes for sale. This was down from 7% in 2019. Currently we have about a 3-month supply, which gives sellers even more of an upper hand in today’s market.
Covid has changed the perception of how people want to live. The pandemic enabled many homeowners to use their lake homes full-time by being able to remote work and virtual schooling.
Also, with quarantine restrictions in place, it was a safe and socially distant refuge. This drove the inventory of available homes for sale down to new lows as people were using their vacation homes as primary residences. Homeowners who were considering selling their homes before the pandemic decided to put off selling, or decided not sell their homes at all.
Also adding to the low inventory everywhere is Covid-19 Forbearance and Eviction Moratoriums. Homeowners who are struggling to pay their mortgages due to financial hardship qualify for Forbearance payment deferral for up to 18 months of missed payments. According to USA today, around 2.7 million homeowners are enrolled in COVID-19 forbearance plans. This moratorium does not apply to privately-owned mortgages (about 30%). The Eviction moratorium was put in place and extended to June 30, 2021. Learn more here.
Telecommuting has enabled more people who had been thinking about buying a lake home to act with more urgency. Many predict that it will permanently change the way we work. Having a lake home is the perfect place to quarantine and live comfortably, while being able to do their jobs.
Also, low mortgage rates were a big draw; according to Freddie Mac, mortgage rates fell 88 basis points during this year, as well from 3.62% in January 2020 to 2.74% in January 2021. This drop in mortgage rates almost completely offsets the rise in home prices, and though mortgage rates will likely increase slowly, there will still be high demand for home buyers.
Rising prices are also a big factor to consider; in March of 2020 the average sales price on Lake Lanier was $523,524. In March 2021, the average sales price was $791,890. That’s a 66% increase! Keep in mind that the number of sales was up by 22 in 2021. With home prices skyrocketing, buyers are eager to buy their dream home before it becomes impossible to afford.
So what does this mean for future Lake Lanier sales? There are many predictions of a correction/recession and inflation that is inevitable. I believe most people can agree that home prices won’t continue to increase at the current pace for much longer. How much longer? I guess we will end this article with: To be continued….
If you’re looking for your dream home, contact me today: 678-852-5397!