The last few transaction I have been involved in are reflecting a softness in the market. I had a $1,050,000 house go for $970,000 (-$80k or 7%) and a $850,000 listing go for $750,000 (-$100k or 12%) and a lot priced at $450,000 go for $395,000 ($55k or 12%). In addition to purchase prices being less than listing prices, inventories of houses continues to increase, duration on the market has increased, and the number of prospective buyers has decreased.
My hypothesis of a big contributing factor: the FOMO we saw when the pandemic hit is over and these buyers are back at work and returning to the prepandemic life…which was busy. They now realize they have an additional house they rarely visit and requires maintenance. In addition, many of the INVESTORS that bought thinking they could pay for the property with rentals have come to the realization that it is impossible to do this with our short season and few offseason rentals.
What does this mean? Deals on lake houses are back and getting better. No one thinks prices will go down to prepandemic prices but there are deals out there. You no longer have to fight with 2 to 3 other buyers to outbid them. DESIREABLE properties are back in inventory….you can now have a choice again without have to resort to hand to hand combat to get the house.
Give me a call at 205.492.3211 if you are ready to find your lake house and get a deal!