There’s always going to be a premium for waterfront because people want to be close to nature and there is only a finite amount of it. But in 2021, we saw buyers desperate to escape to lakefront vacation homes, and competitive bidding was extremely aggressive. That strong sellers market continued into 2022. Recently though, with higher interest rates and inflation, buyers are becoming more selective, so it’s more important than ever to know the latest about your local lake market.
Here’s what we’re are seeing:
1. Over-Priced Houses Sit: Pricing too high initially will cause your house to sit on the market. Some homeowners base their price on what neighbors sell for, regardless of size/frontage/view/etc. If it’s listed too high, eventually, you’ll cut the price, and the property will appear less desirable.
2. Demand: The demand for lake homes will begin to slow slightly, but will still remain high. This can be misleading because premium lake lot properties are not slowing, but all waterfront is not created equal and less desirable lakefront properties (such as those on canals or channels) may see a slow down.
3. Inventory: The supply of lake homes on the market is at an all-time low and will continue to be scarce.
4. Expanding search area to multiple lakes: Buyers are starting to consider other lakes where they may have more purchasing power. Some lakes are more affordable than others and buyers are willing to make sacrifices to own waterfront.
5. Buying Land or Tear Down: Buyers are finding it difficult to discover a lake home with everything they want and are increasingly looking at tear downs and vacant lots where they can build the home of their dreams.
If you are thinking about selling your lakefront property, be realistic about your home. I’m seeing push back on those houses that are overpriced or rushed to market without proper staging and clean-up. Can’t wait to be a resource when you’re ready!