Lake Real Estate Market Report

Lake Real Estate Market Report A Multi-State, Lake-Focused Real Estate Market Report Winter 2020 Produced By LakeHomes.com Lake Real Estate Market Report – Winter 2020 Table of Contents CEO’s Market Insights ................................................................................................................................. 3 Report Methodology..................................................................................................................................... 7 Overall Top 10s ............................................................................................................................................ 8 Top-Ranked By State.................................................................................................................................. 10 Alabama...................................................................................................................................................... 14 Arkansas ..................................................................................................................................................... 20 Connecticut................................................................................................................................................. 26 Florida......................................................................................................................................................... 31 Florida - Central..................................................................................................................................... 37 Florida - NE ........................................................................................................................................... 41 Georgia ....................................................................................................................................................... 45 Idaho ........................................................................................................................................................... 51 Illinois......................................................................................................................................................... 56 Indiana ........................................................................................................................................................ 61 Iowa ............................................................................................................................................................ 66 Kentucky..................................................................................................................................................... 71 Louisiana..................................................................................................................................................... 76 Maine.......................................................................................................................................................... 82 Maryland..................................................................................................................................................... 88 Massachusetts ............................................................................................................................................. 93 Michigan..................................................................................................................................................... 98 Minnesota ................................................................................................................................................. 104 Mississippi................................................................................................................................................ 109 Missouri.................................................................................................................................................... 113 Nebraska ................................................................................................................................................... 117 New Hampshire ........................................................................................................................................ 121 New York.................................................................................................................................................. 127 North Carolina .......................................................................................................................................... 133 Oklahoma.................................................................................................................................................. 139 Pennsylvania............................................................................................................................................. 145 South Carolina .......................................................................................................................................... 151 <a href="/goto?url=http://www.LakeHomes.com" target="_blank">www.LakeHomes.com </a><ul style="display: flex;"><li style="flex:1">Copyright © 2020 Lake Homes Realty, LLC </li><li style="flex:1">1</li></ul>Lake Real Estate Market Report – Winter 2020 Tennessee.................................................................................................................................................. 157 Texas......................................................................................................................................................... 163 Vermont.................................................................................................................................................... 169 Virginia..................................................................................................................................................... 174 Washington............................................................................................................................................... 180 Wisconsin ................................................................................................................................................. 186 Permissions for Use .................................................................................................................................. 191 <a href="/goto?url=http://www.LakeHomes.com" target="_blank">www.LakeHomes.com </a><ul style="display: flex;"><li style="flex:1">Copyright © 2020 Lake Homes Realty, LLC </li><li style="flex:1">2</li></ul>Lake Real Estate Market Report – Winter 2020 CEO’s MARKET INSIGHTS While we find ourselves in uncharted economic territory, the lake real estate market is robust and looks to remain strong through 2021. To be more specific, here are my observations and outlook based on our brokerage and market data, consumer trends on LakeHomes.com, and updates from Lake Homes Realty agents at lake markets across the country. Some (but not all) of these opinions apply to most residential real estate and not just lake homes and land. 1. Due to the expectations of available vaccines, many predict a real estate boom in 2021 as we come out of COVID restrictions and business picks up across the country. My opinion differs as I expect a strong market but no boom. The lake real estate market activity during the winter and spring of 2021 will slightly exceed winter and the spring of 2020 PROVIDED there are enough appropriately priced homes for buyers to purchase (which is a severe problem in most areas of the country). I believe the 2021 real estate markets, including lake real estate, will be similar (+/- 20%) to the strong market volume of 2020. One important caveat: When the Covid relief moratorium on foreclosures ends, there will be damage to homeowners and lenders in the real estate market. Consequently, the overall real estate market and the U.S. economy will have damage, although the degree of damage is hard to predict. Simultaneously, lake real estate markets will be insulated from foreclosures, other than peripheral influence. Even in the real estate bust of 2008 and 2009, there were few foreclosures on lake homes. Most owners paid cash or were otherwise wealthy enough to avoid foreclosure. In 2021, lake home buyers should not expect to find "great deals" at the lakes, even if other real estate segments struggle with foreclosures or short sales. 2. Other than closings on previously existing contracts, Mid-March through mid-April saw real estate activity almost freeze. However, in mid-April, lake home buyers returned and by May had STORMED past pre-COVID levels of activity, which has continued into the end of the year. Market tempo initially varied by state, as some brokerages were restricted by law from conducting real estate for a month or two. Now, most of the country is unusually active with increasingly assertive buyers. 3. The already limited pre-COVID inventory of "appropriately priced" lake homes has continued to shrink. At some lakes, the inventory of lake homes for sale is at all-time lows. <a href="/goto?url=http://www.LakeHomes.com" target="_blank">www.LakeHomes.com </a><ul style="display: flex;"><li style="flex:1">Copyright © 2020 Lake Homes Realty, LLC </li><li style="flex:1">3</li></ul>Lake Real Estate Market Report – Winter 2020 An increased appetite from buyers drives the inventory contraction while many sellers have retreated. The seller retreat is due to health and economic concerns and will last until homeowners feel physically and financially safer. “The already limited pre-COVID inventory of "appropriately priced" lake homes has continued to shrink. At some lakes, the inventory of lake homes for sale is at all-time lows.” - G 4. Are we headed to a real estate boom or bust? No, at least not right away. In the 2009 recession, mortgage lending and real estate deals lead to that disaster. Therefore, it could not lead the country out of the bust cycle. This time the real estate industry, including lending, is on much more solid ground. Building supply shortages will suppress a massive surge in new home construction and prevent an oversupply in the next two years. 5. While money remains cheap to borrow, lenders are increasingly cautious. Their caution is forged in concerns of Covid-driven business failures, corresponding unemployment, and the pandemic-related national and private debt. Cautious lenders, however, will not be an issue for lake real estate. Lake home buyers often pay cash, so mortgage availability has little-to-no impact. That said, some lake home buyers may entertain using cheap interest mortgages for home purchases, leaving their capital available for any unexpected struggles. Overall, mortgage rates and availability will have no meaningful impact on the lake real estate market in 2021. 6. COVID-19 created three new types of lake home buyers. The first are those who have decided they should no longer wait to find their dream home. They want to buy their lake home sooner rather than later and may settle for less than perfect. The second new buyer profile believes a lake home is a great place to social distance, work remotely, and home school. These buyers understand that a lake home will still be an enjoyable investment even if the pandemic ends sooner than expected. The third and newest type of lake homebuyer has decided that instead of considering a lake home as a second home, a lake home will instead be their primary (and perhaps only) home. These buyers are taking advantage of remote work and home school options. With this flexibility and strong demand for homes, they sell their homes in the cities and suburbs and move full-time to the lake. 7. With strong demand for lake homes, why are there tens of thousands of lake homes and lake lands that have been listed for sale for months and even years? Easy answer. Buyers consider these properties as overpriced. Buyers may be hungry, but they are not fools. They know the lake real estate market is likely at, or near, peak and have no desire to shoot too far beyond that peak. <a href="/goto?url=http://www.LakeHomes.com" target="_blank">www.LakeHomes.com </a><ul style="display: flex;"><li style="flex:1">Copyright © 2020 Lake Homes Realty, LLC </li><li style="flex:1">4</li></ul>Lake Real Estate Market Report – Winter 2020 These buyers remember their friends and family (and maybe even themselves) who bought at the 2008 peak and never fully recovered that investment. With the likelihood of economic and debt turmoil ahead of us, lake home buyers are eager but still prudent. 8. What will not change is a pattern we have seen for three years now: Lake home buyers will look to see if a property has been listed for sale by "motivated sellers" or "speculative sellers." As has been the case for the last three years, buyers will quickly respond to new listings that signal (by a reasonable price) the property is genuinely and actively for sale. At the same time, if a home is priced high or is in poor condition for the list price, buyers will believe the seller is not serious. The buyers will usually ignore these lake properties, regardless of any shortage of available inventory. Lake home buyers (and home buyers in general) easily spot overpriced homes and AVOID THEM! Typically, they do not even request a showing or more information. Their time is too valuable, and they find the sellers of overpriced homes to be unmotivated to negotiate. So, they do not spend time looking at houses of "speculative" sellers. Instead, these interested buyers watch inventories online and wait for reasonable sellers. 9. When pricing their lake home, sellers should realize that many buyers evaluate lake homes on MULTIPLE LAKES, sometimes even in different states. Therefore, it is wise to price lake real estate with a solid understanding of multiple markets and guidance on home prices on similar lakes in other areas. 10. Lake homes priced below $800,000 will continue to sell well WHEN (and only when) PRICED APPROPRIATELY for age, location (including shoreline, water quality, and water depth), and physical condition. This amount is an increase in the price point from prior years. 11. Except for markets where the average lake home value is more than $800,000, lake homes priced at $800,000 or more continue to see less buyer interest. The lack of interest will not change in the next year (or longer) due to several specific reasons. Most lake home buyers have risk-averse price sensitivity. A subset believes they can now find amazingly discounted deals (which is not a reality, but still their belief). As a group, buyers are showing no appetite for paying peak premium prices. Sellers who overprice ignore this buyer's reality at their peril. Older homeowners are continuing the trend of downsizing. The impact of this trend is growing in the inventory of larger, high-end lake homes for sale at a time when many buyers seek more practical lake homes. Before the pandemic, I felt the cultural "The Age of Opulence" had ended. That is, owning the largest homes that were once a popular trend has now faded. The current economic uncertainty and buyer trends have affirmed this as a reality. <a href="/goto?url=http://www.LakeHomes.com" target="_blank">www.LakeHomes.com </a><ul style="display: flex;"><li style="flex:1">Copyright © 2020 Lake Homes Realty, LLC </li><li style="flex:1">5</li></ul>Lake Real Estate Market Report – Winter 2020 12. Sellers need to understand that a lack of showings (in-person or virtual) or lack of offers is rarely due to a lack of marketing of a home (other than exceptional cases or some For-Sale-ByOwner properties lacking sufficient online exposure). Buyer inaction will continue to speak loudly even if unrealistic sellers ignore the message. A lack of buyer interest announces that buyers consider the property overpriced for buyers' current appetite. An overpriced home is not even worth their time to inquire or visit. If selling a home, listen to the market's response (which is often silence), and adjust quickly before your property becomes "stale" on the market. Appropriately priced lake homes and land are quality investments in any economy. Whether you are buying, selling, or planning for the future, I hope this report is helpful. Please let us know if we can be of service in any way. Really! Glenn S. Phillips CEO <a href="/goto?url=http://www.LakeHomes.com" target="_blank">www.LakeHomes.com </a><ul style="display: flex;"><li style="flex:1">Copyright © 2020 Lake Homes Realty, LLC </li><li style="flex:1">6</li></ul>Lake Real Estate Market Report – Winter 2020 Report Methodology LakeHomes.com is the website and public information tool of Lake Homes Realty. Lake Homes Realty is a fullservice real estate brokerage licensed in 31 states and is currently a member of 134 Multiple Listing Services (MLS). Thirty-one of these states are covered in this report. States that are not included in this report have data that has not yet been evaluated. This report is based on real estate property for sale based on listing data collected in November of 2020, including value (i.e., list price) and volume of listings in the 31 states covered in this report. When calculating the “Most Expensive” and “Most Affordable” rankings, any lake with fewer than 10 home listings or (10 small land/lot listings or fewer than 5 large, 10 acres or more, land/lot listings) currently available for sale were eliminated from the report to increase the reliability of the average listings. Lakes with less than one total acre were not included in acreage price averages. The several state graphics include only lakes with one or more or two or more million-dollar homes. ZIP codes with four or fewer listings were not included in ZIP code analyses. Many states share at least one large lake with another state, and to best represent their market size, the inventory for the entire lake market is included in the market size rankings. These lakes are noted throughout the report (*). Because prices in some states are inherently different than their neighboring states, combined inventory of border lakes is not used for “Most Expensive” and “Most Affordable” rankings, which are calculated using only property in the given state. Market and Listing totals include all currently listed property, not just the total of the top lakes listed in this report. All other comparisons, including website traffic, were determined using data from LakeHomes.com for the 3- month period ending November 14, 2020. Data is collected from each MLS on a daily basis for each home and land/lot listing available for sale. Through proprietary algorithms of LakeHomes.com, it is determined which MLS listings are lake homes and lake property. For reporting purposes, lake homes and lake land are any home or land/lot listing adjacent to a recognized inland body of water, has a view of any of these lakes, has designated access to a lake, or is within a community that considers itself a lake-focused community or development. The data is comprehensive for each MLS of which the firm is a member, however additional MLS are periodically added. This can increase the total amount of data collected and can slightly influence comparative measurements with past and future lake market reports. New data and MLS sources are periodically added, and the lake algorithms frequently adjusted to accurately include only lake property and lake-associated property. This can result in the periodic addition or removal of active listings. V1 <a href="/goto?url=http://www.LakeHomes.com" target="_blank">www.LakeHomes.com </a><ul style="display: flex;"><li style="flex:1">Copyright © 2020 Lake Homes Realty, LLC </li><li style="flex:1">7</li></ul>Lake Real Estate Market Report – Winter 2020 * This includes lake real estate inventory from more than one state. <a href="/goto?url=http://www.LakeHomes.com" target="_blank">www.LakeHomes.com </a><ul style="display: flex;"><li style="flex:1">Copyright © 2020 Lake Homes Realty, LLC </li><li style="flex:1">8</li></ul>Lake Real Estate Market Report – Winter 2020 * This includes lake real estate inventory from more than one state. <a href="/goto?url=http://www.LakeHomes.com" target="_blank">www.LakeHomes.com </a><ul style="display: flex;"><li style="flex:1">Copyright © 2020 Lake Homes Realty, LLC </li><li style="flex:1">9</li></ul>Lake Real Estate Market Report – Winter 2020 * This includes lake real estate inventory from more than one state. <a href="/goto?url=http://www.LakeHomes.com" target="_blank">www.LakeHomes.com </a><ul style="display: flex;"><li style="flex:1">Copyright © 2020 Lake Homes Realty, LLC </li><li style="flex:1">10 </li></ul>Lake Real Estate Market Report – Winter 2020 * This includes lake real estate inventory from more than one state. <a href="/goto?url=http://www.LakeHomes.com" target="_blank">www.LakeHomes.com </a><ul style="display: flex;"><li style="flex:1">Copyright © 2020 Lake Homes Realty, LLC </li><li style="flex:1">11 </li></ul>Lake Real Estate Market Report – Winter 2020 * This includes lake real estate inventory from more than one state. <a href="/goto?url=http://www.LakeHomes.com" target="_blank">www.LakeHomes.com </a><ul style="display: flex;"><li style="flex:1">Copyright © 2020 Lake Homes Realty, LLC </li><li style="flex:1">12 </li></ul>Lake Real Estate Market Report – Winter 2020 * This includes lake real estate inventory from more than one state. <a href="/goto?url=http://www.LakeHomes.com" target="_blank">www.LakeHomes.com </a><ul style="display: flex;"><li style="flex:1">Copyright © 2020 Lake Homes Realty, LLC </li><li style="flex:1">13 </li></ul>Lake Real Estate Market Report – Winter 2020 ALABAMA Price Breakdown by Number of Homes in the Alabama Market 2020Q4 $250K To $500K 449

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