Pine Mountain Lake Real Estate Market Conditions
2nd Quarter Update 2017
Pine Mountain Lake’s Real Estate Market is still going very strong The first half of the year resulted in 78 residential homes being sold, and as of this writing (July 1) there are 24 PML homes in escrow and 103 homes on the market.
Median sales price was $220,000 (a few % lower than the median sale price for 2016), and median list prices for those homes was $224.997, so median sale price/list price ratio was 97.78% (for homes that sold, sale price averaged 2.22% less than listing price). 47% of PML homes listed in the first half of the year sold and average days on market for homes that sold was 114 days (median was 87 days).
Why has the market been so good? Here are my thoughts:
1) There is much more confidence in our economy.
2) Interest rates are still very good. A strong economy has some worried that the Federal Reserve will soon move to raise rates, and this is prompting some who have been on the fence about real estate investments.
3) While the stock market is doing incredible lately, investors are getting a little more nervous about the possibility of a bubble. Real estate is again becoming popular as a solid investment. With steady gains in real estate over the past few years, confidence is once again in place. The majority of my clients are buying second homes in PML for both investment and vacation use; with many of them having the property on a vacation rental program when they are not using it.
4) Self management options for vacation rentals. Websites such as HomeAway, VRBO, and Hometogo have become great vehicles for self management of properties, saving investors on the management fees of traditionally used property management companies. There are now smartphone controlled lockboxes and home thermostats, and local housecleaners who will do inventory and linen changes. The self management option has definitely increased our percentage of investor buyers.
5) Gas prices are still good. Lower gas prices make a PML home more appealing to our typical Bay Area resident buyers looking for a second home.
6) More tourists are visiting Pine Mountain Lake. We continue to get more vacation home renters each year, and more people enjoying PML vacation homes has brought a corresponding increase in home buyers.
7) Great home values! The majority of our buyers are from the Bay Area, which has experienced incredible gains in values. Many are shocked to see how affordable PML homes are.
So, what can we expect for the third quarter of 2017?… The busiest months of our real estate market correlate with the warm temperatures and peak rental season of summer. So strong sales will continue in July and August and slow a little as school season approaches. But the market should remain fairly strong through the rest of the year.
Lots of folks are looking at properties and this website is now averaging about 450-650 page views a day. The majority of home buyers are looking in the $200K or less price range, but we are now seeing a larger proportion of buyers in the $200-300K range. Higher priced “full time” residences are not getting as much attention as more affordable homes that are being bought for vacation homes/rentals.
Buyers will be rewarded in this period of peak amount of homes on the market, with plenty to choose from, and more motivated sellers as we moves towards fall. For those in the market for a lakefront home, the inventory is particularly high right now.
“Get New Listing Updates” is a great tool of this website that allows you to personalize and save a property search and be immediately updated when a new listing that matches your criteria comes on the market. Please utilize it, and don’t worry; I wont pester you if you sign up for updates.
If you’re ready to begin your home search, give me a call! It would be my pleasure to show you any homes that you find on this site. I also can also give you a tour of Pine Mountain Lake and Groveland, and show you the numerous amenities, restaurants, and attractions that make this community such a great place to live.
Tom Knoth
#1 Agent for PML Sales in 2016!
Owner/Broker – Knoth Properties
209-962-5838
Market Statistics (2012-2016)
For the “propeller heads” among you, who just cant get enough stats, I add the following:
In 2012, there were 120 single family homes sold in Pine Mountain Lake, with a median list price of $175,000 and median sale price of $165,000. The median sale price to list price ratio was 94.28% These homes which sold had a median marketing period of 148 days on the market. In 2012, 60% of all single family homes listed in PML were sold.
In 2013, there were 123 single family homes sold in Pine Mountain Lake, with a median list price of $197,000 and median sale price of $187,500. The median sale price to list price ratio was 95.17% These homes which sold had a median marketing period of 136 days on the market. In 2013, 68% of all single family homes listed in PML were sold. Keep in mind that the Rim Fire was in August 2013 and market conditions were subsequently very slow in the fall and winter. Despite this, the median sale price in 2013 was 12% higher than it was in 2012.
In 2014, there were 106 single family homes sold in Pine Mountain Lake, with a median list price of $199,450 and median sale price of $192,500. The median sale price to list price ratio was 96.52% These homes which sold had a median marketing period of 99 days on the market. In 2014, 56% of all single family homes listed in PML were sold. The market had a slow start in 2014 but finished strong. The median sale price in 2014 was 2.67% higher than it was in 2013.
In 2015, there were 127 single family homes sold in Pine Mountain Lake, with a median list price of $195,000 and a median sale price of 189,000. The median sale price to list price ratio was 97%. These homes which sold had a median marketing period of 112 days on the market. 60% of all single family homes listed in this period sold. The median sale price in 2015 was 1.82% lower than it was in 2014.
In 2016, there were 136 single family homes sold in Pine Mountain Lake, with a median list price of $236,250 and a median sale price of 228,497. The median sale price to list price ratio was 96.72%. These homes which sold had a median marketing period of 96 days on the market. 59% of all single family homes listed in this period sold. The median sale price in 2016 was 17.17% higher than it was in 2015.
