Rural Lakeshore Market Bucks Trends
There is an interesting article (registration required) at DL-Online (Detroit Lakes Tribune & Becker County Record) with statistics on the Detroit Lakes property market.
Lakeshore lots
Buildable lakeshore lots are as popular as ever. In the Detroit Lakes-Audubon-Lake Park area, there are 437 such parcels on the market this year, up from 360 last year. Days on the market averages 311 this year, down from 406 last year.
Fifty-one were sold last year compared to 36 this year.
Lakeshore residential
Lakeshore residential property remains as hot as ever.
In the Detroit Lakes-Audubon-Lake Park zone, there are 392 houses for sale, up from 382 last year. Days on the market now average 179, down from 219 days last year. There were 111 such homes sold last year and 103 sold this year. Average sale price increased 6 percent, to $328,435 from $307,523.
In Frazee, the average lakeshore residential home price rose 23 percent, from $178,000 last year to $220,000 this year. But that is based on the sales of just a few houses — two sold last year and one sold this year.
There are 20 such homes on the market now, up from 13 last year. Average days on the market is 177 this year, down from 195 days. The homes are going for near list — 98 percent this year compared to 97 percent of list last year.
Interesting stuff. The lakefront property market in rural Minnesota & Wisconsin continues to outperform the national real estate market, but I am somewhat concerned about the credit crunch.
If you have been waiting on the sidelines, you may find yourself laying down a larger down payment that you had anticipated. Maybe you have been planning for a 5-10% down payment - but waiting to see if prices would come down. The fact of the matter is that prices are still going up and at the same time, creditors are requiring larger down payments (even if you have great credit).
Rates are still at record lows - now is the time, in my opinion (for what its worth), to get into the lake property market. And if you are looking at it as a straight, long-term investment - you may want to consider a river property.