New report details current lake home listings nationally and by state; CEO shares real estate insights
HOOVER, AL / ACCESSWIRE / September 7, 2021 / With Labor Day behind us, fall holidays approaching, football back in action, and COVID concerns lingering, families are still looking to lake properties as investments and escapes. Over the past year, families bought lake homes as a way to safely reconnect with families and friends. The lake real estate market footprint at Lake Homes Realty reaches 34 states and now exceeds $38 billion. The total amount of lake home and lot listings is up nearly $10 billion since this spring.
The new Fall 2021 Lake Real Estate Market Report is now available to download for free to media online at www.lakehomes.com/report. This comprehensive report is compiled with data gathered from 131 MLS listings from across the country by Lake Homes Realty, the nation's largest lake real estate brokerage. This information is not available from any other source.
"Lake real estate continues to be a hot market and even hotter than most other types of homes," said Glenn S. Phillips, CEO of Lake Homes Realty. "That said, a hot market is a relative term, and we back this up with data," he said. "In addition, some (but not all) of my thoughts apply to general residential real estate and not just lake homes and land. However, where lake real estate is different, it can be exceptionally different."
Overall, Phillips believes that for the next 12 months or so, the real estate market and the U.S. economy will be in good to great shape. "In the period after that is a gray area with too many variables to make any prudent prediction," said Phillips. "I have a growing concern about the two-to-seven-year outlook. Some suggest a strong economy will offset our fast-growing public debt," he said. "I counter that with simple math. The infusion of trillions of dollars of cash into any economy will heat that economy in the short term. Still, inflation is inevitable due to the massive size of that cash infusion. To this point, inflation has already begun in many markets, including real estate. It will continue, even if it does not become runaway inflation."
With the continued rollout of vaccines, many had predicted a big real estate boom in 2021 and 2022 as we come out of Covid-19 restrictions and pent-up consumer spending picks up. Well, it turns out COVID-19's recent surge has put a damper on those projections.
Phillips was never in the "big real estate boom is coming" mindset. He believes there will be a robust short-term market but not a boom. This robust period will occur regardless of COVID-19 surges, likely variants, or even a move from pandemic to endemic. Phillips says the lack of homes for sale will inhibit any boom, no matter how much cheap money is available.
"During the upcoming fall and winter, the lake real estate market activity will slightly exceed the same seasons of last year, provided there are enough appropriately priced homes for buyers to purchase," said Phillips. "This is a serious problem inhibiting a big boom in most areas of the country."
"Glenn S. Phillips (CEO) and Doris Phillips (COO) lead Lake Homes Realty, the largest lake-focused real estate brokerage in the country. The company has been on the Inc. 5000 list for the past five years. www.lakehomes.com"
The 2021 real estate market, including lake real estate, will be better (up 15% to 25%), according to Phillips, but still similar to the strong market volume of 2020. "The already limited pre-COVID inventory of appropriately priced lake homes for sale drastically shrank during the past 18 months. At some lakes, the inventory of lake homes for sale is at all-time lows," he said. "The sellers' retreat was driven by health and economic concerns and the remote work/school lifestyle available at most lakes."
When potential lake buyers find a home to purchase, they often pay cash, so mortgage availability has a little-to-no impact. "Some lake home buyers may entertain using cheap interest mortgages for home purchases, leaving their capital available for any unexpected struggles," said Phillips. "Overall, mortgage rates and availability will have no meaningful impact on the lake real estate market in 2021 and 2022."
Phillips recommends lake real estate owners think of their property with an investment mindset. "Peak markets do not last forever, and we only see the peak after we have passed it," said Phillips "The key is to consider your future. If you anticipate holding this home/investment for more than five to ten years, then relax and enjoy the lake."
For lake homeowners considering downsizing, eliminating a second home, or moving back toward family away from the lake, Phillips says now is a great time to sell your home. "2021 remains a great opportunity to get the best return on your investment in your lake home," he said. "We don't know how long this window of opportunity lasts but it likely will not return for years once it passes."
While more than $38 billion of lake homes and lots are currently on the market, Phillips warns sellers not to grossly overprice their homes. "Buyers see these homes listed online and won't even waste their time to ask about these properties, much less ask to see them," he said. These buyers remember friends and family (and maybe even themselves) who bought at the 2008 peak and never fully recovered that investment. "With economic and debt challenges expected in coming years, many lake home buyers are eager but still prudent," he said. "Grossly overpriced lake homes and lots will sit unsold. Appropriate pricing still matters."
FALL LAKE MARKET REPORT INSIGHTS
INCREASED LISTING PRICES: As of August 15, 2021, $38,401,524,755 of lake homes and lots are on the market. That is up from $35,518,151,955 in summer (May 15), and $28,805,375,303 in spring (Feb. 15, 2021).
BILLION DOLLAR STATES: These states each have more than $1 billion in lake homes and lots for sale: Texas ($4.86), Washington ($3.75), North Carolina ($2.87), Michigan ($2.7), Illinois ($2.2), Florida ($2.11), Minnesota ($1.98), Georgia ($1.98), Tennessee ($1.84), South Carolina ($1.53), New York ($1.22), Alabama ($1.11), Missouri ($1.03), and Wisconsin ($1.03). The market report has specific details on 33 states individually and collectively.
CASH PURCHASES: Approximately 65% of our lake home purchases are done in cash.
MOST EXPENSIVE HOMES: The most expensive lake home markets have not changed much over the past six months. Here are the top five most expensive lake home markets nationally by average home price per lake: Lake Butler in Orange, Florida near Disney World - $3,774,817; Lake Washington near Seattle $3,246,594; Coeur d'Alene Lake near Spokane, Idaho $3,083,215; Flathead Lake, Montana $2,545,156; and Upper Long Lake near Pontiac, Michigan $2,364,050.
MOST AFFORDABLE LAKE HOME OPTIONS: Seven of the top 10 most affordable lake areas are in Illinois. Here are the top five most affordable homes by lake average: Goose Lake near Juliet, Illinois $97,582; Pymatuning Lake near Pittsburgh, Pennsylvania $109,100; Chain O'Lakes near Dunns Lake, Illinois $120,217; Lake Victory near Chicago, Illinois $138,157; and Lake Cottage Grove near Dolton, Illinois $139,680.
For more on Lake Homes Realty and the market report, visit www.lakehomes.com.
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SOURCE: Lake Homes Realty