The Real Estate Market in Lakes Country has been strong in 2019. Strong but different. Strong and also difficult.

We find it hard to pin point the exact reasons for market behavior and market change particularly in a unique market as Lakes Country. National or even metro markets are very different from our local market place. We are generally experiencing an above average strong market in our area. We believe most of us understand that buying and selling property on a lake is a different kind of real estate than city properties are. Lake shore property is a luxury good and is being valued for many more reasons than location alone. However, we have to distinguish between weekend properties and rural homes used as primary residences. We saw many rural homes sit on the market longer than expected this year. Some buyers were also able to get a lot of home for a very affordable price in smaller communities in Lakes Country. There is a large price gap between lake properties being used as second homes versus primary residence homes in the area.

If you are looking to buy real estate on a lake you will be confronted with a number of variables such as location and distance to your primary home, type of lake, setting of property, condition of the dwelling and other factors. It is hard to determine if it is a strict buyer’s market or seller’s market when considering scarce goods. We like to compare lake property with the purchase of a collectors car or an original piece of art. If the perfect property comes on the market it will have its price. The same as a Picasso may reach a record auction price a unique and prefect lake property may sell for an incomparable price. However, the same goes for less desirable property. If the property is not perfect it will be hard to achieve a record breaking price. The same goes for an old car which is more of a restoration project than a show car—it will sell for a discounted price only.

Looking at the statistics and comparing 2018 vs 2019 sales we have 2% fewer properties being listed in 2019 but about 5% more dollar volume in sales which means we have had a more expensive market this past year. Another reason for higher volume sales is a median property price increase of %6.5. Surprising is that we have 4% less new listings coming on the market in 2019, however the listing dollar value is 3% higher and the median list price is 9% higher.

Since the national housing crisis during 2007-2009 we have seen property value going up on average. One important piece about today’s lake shore property value is as mentioned earlier: how unique and how perfect is the lake lot. As we know that there will never be more lakes to develop we have to distinguish between good and better lakes or even bad lakes. If you are in the market for a recreational lake shore property you may have to have the patience to find the perfect place or pay a premium if you find it. Another obstacle we have noticed is that many buyers since 2011 are enjoying their lake life and are not intending to give it up any time soon. That means the perfect lake property will become even more scarce to find.

Consult with a local expert who can assist you to find and price the right property for you. Your lake life advisor needs to know the market from within. At Jack Chivers Realty you will only find full time local real estate experts who love lake life and are the best lifestyle ambassadors helping you make this place memorable to you and your family. #weknowaplaceforyou

Dirk Ockhardt

Broker, CEO