An Incredible June
In a hurry? Here are the takeaways:
  • June witnessed historic sales.
  • Buyer demand remains high. Folks are turning to the Mountain Lakes Region seeking safety in troubled times.
  • Interest rates are at historic lows; some below 3%. There will never be a better time to buy and finance a home purchase.
  • Home values are appreciating. The mean and median sales prices are up significantly year-over-year. It is a Sellers market at nearly all price points.
  • Inventory is essentially sold out.
During 2Q2020 sales of Lake Keowee Homes (both waterfront and interior homes in communities that share a boundary with the lake) continued the strong year-over-year performance established in 1Q2020. April was down about 3% from March due to deferred closings in the face of the national COVID-19 pandemic. May recovered to report sales about 14% over April. June, however, took sales to a new level rocketing up 122% over May to set an all-time record of $56,235,000. It was a leap of 115% over the results experienced a year ago in June 2019. While some folks were deferring closings in in April, others were signing contracts all around Lake Keowee for homes. In perspective, June sales were roughly twice the previous all-time high of $28,500,000 experienced just last November. The 20% bounce in national home sales reported by the National Association of Realtors® for June, a historic figure in its own right, paled by comparison.
Actual vs 2020 Market Prediction Model
It had been expected entering April that sales would flatten. By April 12 home showings (i.e. prospective buyers scheduling to to inspect a home) in South Carolina were running 47% below the comparable rate in 2019. Buyers were locked-in where they were living and Sellers generally didn't really want strangers walking through their homes. Things changed! Somehow buyers escaped those lock-downs and quarantines and sellers opened their doors. Showings bounced back from that April deficit and by May 22 showings exceeded the rate experienced in 2019. This was a remarkable turn of events.
Waterfront Home Market Segment
Those massive June sales essentially wiped out what little inventory remained available across all Home price points. Over the course of the three months of 2Q2020, 118 Lake Keowee Homes (waterfront and interior) sold for a total of $104,000,000. Thirty-five of those homes sold for $1,000,000 or more (21 of them in June alone). All the "Mega" sale were waterfront homes. The highest sale (465 Peninsula Ridge) occurred in The Reserve at Lake Keowee for $2,850,000 on May 18, 2020. Outside of the high-end golf communities, the highest sale (152 Cedar Bluff Court) occurred in The Highlands for $1,895,000 on June 26, 2020. Conventional wisdom is that a "normal" or "balanced" real estate market is when, on average, sales can absorb the then current inventory in about six months. For Lake Keowee Waterfront Homes asking $2,000,000 or below the expected time on-market is currently running four months or less. There are huge opportunities for sellers willing to offer their homes at price points around $600,000, $800,000 and $1,800,000 as noted above.
Interior Home Market Segment
The market for interior homes around Lake Keowee is more balanced; being favorable to sellers at prices below $1,000,000 and to buyers above that price point. Interior homes conveying boat slips have a good opportunity when priced around $600,000.
Market Trend and Forecast
In 2019 the market totaled $248,100,000 in sales. That was an overall growth of 3.21% over 2018 and a continuation of year-over-year market growth that began in 2012. As we entered 2020, it appeared that the market would be constrained by diminishing inventory and probably fall behind that of 2019 by about 10%. But, the long term outlook remained optimistic. To quote from my last quarterly report, "A paradigm shift is occurring driving buyers into this market from other more densely populated regions of the country predominantly in the northeastern corridor and northern mid-western states. The availability of a reasonably strong telecommunication infrastructure in the southeast will facilitate this migration of both retirees and mid to upper level executives that are able to work virtually. Our Mountain Lakes Region and especially the Lake Keowee market will benefit from this movement." That is, in fact, happening. Demand will remain high going forward. Inventory will be the constraint. High demand and constrained inventory will push prices up. Additionally, the demographics of the new wave of buyers is going to skew the mean and median home prices up-market. Interest rates are still another factor. They are currently historically low. It may not be possible for them to go lower. It all adds up to a perfect time to bring a home to market.

For what this all means to you personally whether you're buying, selling or simply exploring, just give me a call at 864-710-5224. It's free!
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Photo © 2019 Bill Koepnick used with permission
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Eldon Blust
Associate Broker
iPhone: 864-710-5224
email: eldon_blust@bellsouth.net

© 2020 Eldon Blust