Lake Lanier Real Estate in a Pandemic-Recession


Homes like this one with a view are in demand.
Homes like this one at 2410 Island Drive, with a lake view, are in demand.


Recently, I consulted with a buyer who couldn't understand why it is not more of a buyers' market for Lake Lanier luxury homes - million dollar plus lakefront homes, given the fact we are in a recession/pandemic with no jumbo mortgages available to speak of. To demonstrate the level of buyer activity, I pulled from our multiple listing service (First MLS) the current pending sales and 'Active/Under Contract' listings at $995,000 and higher, as to list price. (Active/Under Contract is a status for homes that have a contract, but are still within the buyer due diligence period).


As of today, July 26, 2020, there are 18 lake homes under contract on Lake Lanier with a list price over $995,000. List prices that I pulled for this quick look, range from $995,000 to $2.3 million. Interestingly, there are a total of 55 Lake Lanier homes showing 'Active' status, ranging from $999,000 to $7.995 million. With 25% of Lake Lanier's total million plus homes under contract, I wouldn't necessarily call it a buyers' market. But there's more activity around the million price point that one might think.

Also interesting to note is that these homes that are pending, were on the market an average of 82 days, which is lower than some might expect for homes in this price point, especially given the availability of a jumbo mortgage. Jumbo mortgages are loans that are larger than the limits set for Fannie Mae or Freddie Mac to insure. Currently the conventional loan limit is $510,400. Most lenders currently have no investors for a jumbo mortgage and therefore, aren't offering the product to borrowers. Recently, a Wells Fargo loan officer told me that they were still doing jumbo loans. Then, I learned that Wells Fargo - the largest provider of jumbo loans - has reportedly limited jumbo purchases to buyers who have at least $250,000 in liquid funds on deposit with Wells Fargo. Most buyers in this price point are obtaining a mortgage for the maximum conventional loan amount of $510,400 and paying the balance of the sales price in cash. 

The average sales price for a lakefront home, year-to-date, on Lake Lanier for 2020 is $629,000 based on sales contracted after January 1, 2020 and was on the market average 85 days. Note how the more expensive, luxury homes at the million price point and above, were on the market for almost the same average time, at 82 days average.

To give you an idea of how quickly these listings near that average price point are moving, this Lake Lanier listing, currently pending, at 3338 Little Circle, Gainesville GA (north Lake Lanier) was on the market for 19 days before going under contract.


This lakefront listing at 3130 Edgewater Drive, Gainesville GA garnered multiple offers and was pending after one day on the market.


Many factors go into pricing lakefront property on Lake Lanier. Several years ago I wrote a blog discussing the factors that weigh in to valuing a home or property on Lake Lanier. Nothing has changed as to these factors that make lake property more desirable. To learn more about how Lake Lanier properties are valued, visit LakeLanierValuation.com. Deep water and year-round water views are two of the factors that weigh heavily in lake properties most sought after.

It's not just here at Lake Lanier that these luxury properties are performing better here than one might have expected.There are many reasons this market is performing well. With luxury buyers, it is more a matter of 'want' than 'need.' As an Atlanta area agent explained in this article, buyers are "flocking to the lake areas of Greater Atlanta from states like New York, New Jersey and Florida, where prices for similar properties are much higher."

If you are thinking of selling and would like to schedule a personal consultation, I would love to see your lake property. Also, I work with sellers of farms and ranches and buyers in finding properties as well. 

I live at Lake Lanier, and have been here in the same neighborhood over half my life. There's nothing like waking up to a different sunrise over Lake Lanier every day. A Gainesville native, I know this area and love sharing my knowledge of the area with those eager to be here and learn more about it.

Visit my website, KimWaters.com or call me at 770-540-3788 to schedule a consulation.


Comments

  1. Most Valuable and Fantastic Blog, I Really appriciate your work .
    Thanks and keep it up.

    To know more, you can visit here: Restore-Utah

    ReplyDelete
  2. Thanks for sharing such beautiful information with us. I hope you will share some more these type of information in future.

    https://www.erikrbrown.com/

    ReplyDelete
  3. Just nice as usual.
    We always lean something from your blogs.
    Keep sharing.
    We are Sunflower properties
    We buy houses kansas city.

    ReplyDelete
  4. Just nice as usual.
    We always learn something from your blogs.
    Keep sharing.
    We are Sunflower properties
    We buy houses kansas city.

    ReplyDelete
  5. Hey Nice Blog!!! Thank you for sharing the information. Wonderful blog & good post.Its really helpful for me, waiting for a more new post. Keep Blogging!!!

    home builders in Fort Myers
    home builders in Naples
    General contractors in Bonita Springs

    ReplyDelete

  6. The association that is now Galaxy Developers traces its roots in Lahore Since 2000. By the 2018s, that business grew to become one of the largest real estate services groups in Lahore, Pakistan. the Galaxy Developers

    ReplyDelete
  7. Global Hill View in Sohna Gurgaon is one of these projects that offer 2BHK home at affordable prices. These projects come up under Haryana Government affordable housing scheme. Call@9250933999 for Booking & Get to Construction Update Global Hill View, Floor plan.

    ReplyDelete
  8. Thank you for delivering this informative post, Rasidential Alabama is the highly used online platform for Property Search in Alabama.

    ReplyDelete
  9. You wrote this post very carefully. The amount of information is stunning and also a gainful article for us. Keep sharing this kind of articles, Thank you. chehalis washington real estate

    ReplyDelete
  10. I want to say thanks to you. I have bookmark your site for future updates. immobilienmakler mülheim an der ruhr

    ReplyDelete
  11. I am a new user of this site so here i saw multiple articles and posts posted by this site,I curious more interest in some of them hope you will give more information on this topics in your next articles. immobilienmakler mülheim

    ReplyDelete

Post a Comment

Popular Posts