Tom's Thoughts

You're thinking about buying a lot or home at Lake Gaston, NC/VA.  It's the dead of winter, which would seem like a good time to buy, but on the other hand, you're reading that real estate prices are stagnant, so maybe you should wait.

What to do?

There's an axiom that says "all real estate is local."  I happen to really believe this is true.  Virtually the only thing that matters is what is the outlook for prices in the specific area you're interested in.  Lake Gaston real estate rose strongly in the first half of 2006, leveled off in the summer, then started gently declining in the fall.  However, prices still  ended the year higher than they started.

My belief is that 2007 will see continuing price increases.  Why?  First, there are very few additional lakefront lots being developed on Lake Gaston, so supply will remain virtually unchanged.  Secondly, the baby boomers, the main buyers of vacation property (60% of our market) are benefiting from increasing income as they advance up the career ladder, and the retirees ( the buyers of 40% of our homes and lots) are an increasing percentage of our population and are more prosperous than ever before.

Importantly, mortgage rates are still near historic lows.   This morning, 30 year fixed rate mortgages, for first and second homes, were at 6%. 

And lastly, we're in the winter slow down, so your chance of finding a seller who's willing to sell for signficantly less than his asking price is at a maximum.  This chance could evaporate quickly when warm weather sets in and the seller starts thinking "Why don't we wait till next winter to sell.

So my advice is, if you're thinking of buying, you're unlikely to ever get a lower price than right now.

                                        Tom Waring