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A study of the Lake Area Real Estate Market
By Mark Beeler
T
he lake area real estate market is
not good - it is strong! What does
that mean?
Our inventory is at a historical low
and property prices are on the rise, as
well as interest rates.
The lake was the last to feel the
recession and the last to feel a
recovery.
Transaction volumes and values of
real estate were somewhat stagnant
to slowly improving during the
recession, so as result replacement
inventory was not being built. The
result is causing a sever shortage of
lake area real estate, which is driving
prices up.
We are illustrating the point with
three categories of real estate, Off
Water Homes, Lakefront Homes and
Condos.
The inventory of the three categories
of real estate as of March 31, 2010
were Off Water Homes 1,147,
Lakefront Homes 1090 and Condos
1,326.
As of 12/31/2017 the inventory of
each category is Off Water Homes
522, Lakefront Homes 451 and
Condos 360, only a 6 month or less
supply for each category.
Maybe that still sounds alike a lot, but
considering the physical area of the
lake and 1,200 mile of lakefront, there
is not much inventory there.
It is only safe to assume that with a
shortage of inventory, prices will
increase. Also safe to assume that as
the economy continues to improve,
we will see rising interest rates.
As interest rates continue to climb and
values for lakefront home increase,
we can expect to see more pressure
put on condos and off water homes
as an alternative to lakefront real
estate. This will exacerbate the lack of
inventory and create a real shortage.
Off Water Homes
Lakefront Homes
Condos
3/1/2010 12/31/17 3/1/2010 12/31/17 3/1/2010 12/31/17
1,326
1,147
1,090
522 451
360
Inventory of available property over a 6 plus year period of time.
