A number of you have contacted me about a newsletter article being circulated that says there is an “…average 19-month supply of water front homes on the market (at Cedar Creek Lake).” Without having read the entire article, it appears to me that there are so many things wrong with just that short excerpt it’s hard to know where to start. So, let me begin by saying that words like “supply” and “inventory” do not apply to the Cedar Creek Lake waterfront real estate market; They apply to urban, suburban and metropolitan areas where so many of the condominiums, townhomes and tract homes are similar - they have similar floor plans, they’re on similar lots, they have similar amenities and they’re in similar neighborhoods. That does not describe the Cedar Creek Lake real estate market. Practically every waterfront home here has a different exterior, a different floor plan, a different view, different waterfront and different neighborhood amenities. One Cedar Creek Lake waterfront home is not just like another.
Okay, so that’s the obvious. How about the numbers?
Well, we DO NOT have an average 19-month supply of waterfront homes on the market - I can think of at least four different formulas for determining that number and none of them come up with 19 months.
FACT: Of the 1,304 Waterfront Homes sold at Cedar Creek Lake since December 5th, 2008, only 41 have taken 19 or more months to sell – that’s 41 out of 1,304 – 3.14%. Does that sound like it could even be an ‘average’ to you? No.
Furthermore, of those 41 properties that stayed on the market entirely too long, the best that one Seller did was sell his/her property at 88.5% of the List Price. Most of those 41 properties – more than half –sold for less than 77% of their List Prices. The average was only 70.3% of their List Prices and one even sold for 34.9% of its List Price!
The average time a Waterfront Home at Cedar Creek Lake spends on the market is 181 days – 6 months.
Sure, that article is trying to talk about the ‘supply’ of waterfront homes on the market and I’m talking about the average time a waterfront home is on the market before it’s sold. That’s the real number which offers Sellers and Buyers some insightful information about the Cedar Creek Lake real estate market.