Amidst the housing and mortgage market turmoil sweeping the nation, homeowners at Lake Lanier seem to have been dealt an additional blow. The metro Atlanta area is suffering from a two year drought and lake levels are approaching critical levels. Not only are more and more docks sitting with no water under them, but if water continues to be released from the lake, the metro Atlanta area may soon find itself without drinking water!

Low lake levels coupled with the mortgage debacle may help to explain why the third quarter of 2007 was the only quarter that saw a decrease in the mean sales price compared with the same time period in 2006. The good news is, while only 68 homes sold during the third quarter of 2007, 29 homes sold during September and another 16 are pending! If homes continue to sell at this rate, the fourth quarter could see the highest number of homes sold in 2007, despite low lake levels!

An analysis of third quarter statistics indicates an increase in both the number of homes sold and the price of homes sold in Maggie Valley, Waynesville, and the surrounding area. The number of homes sold increased 14% when comparing the first and third quarters of 2007. Additionally, the average home price increased more than 6%. Asheville and its surrounding areas saw an increase in the average home price of 9% while the number of homes sold increased 10%. Although the number of homes sold is still down from 2006, third quarter statistics suggest considerable improvement in the residential home market.