Thursday, February 22, 2007

Minnesota Lakeshore Is Affordable Again!

In the past decade the prices on Minnesota lakeshore had become out of reach for many buyers. Prices shot up in the late 1990’s. Lake lots on Coon Lake in Anoka County went on the market in 1998 for $60,000 and were re-sold three years later for over three times that at $200,000. Homes on lakeshore saw similar increases. There didn’t seem to be an end in sight to what someone would pay for lakeshore in the Twin Cities.

Then “The Buyer’s Market of 2006” hit the Twin Cities and north metro. What a welcome relief to would-be lake home owners. The chance to own Minnesota shoreline is once again within reach.

The recent buyers market has affected the prices of lakeshore in Minnesota. With there being so many homes available, buyers have a selection that hasn’t been seen in the past decade. That abundance of homes is in all categories, including the wonderful lakeshore homes coveted by Minnesota sportsmen and nature lovers. To see what kind of an impact the buyer’s market has had Minnesota lakes, I did some research on lake homes sold in the past six months (August 2006 to February 2007). As a Realtor working in the north east metro for several years, I knew it was difficult to find reasonably priced Minnesota lakeshore in for the past few years…especially with a quick commute to the city. I wanted to see if the change in the market had made lakeshore more affordable. What I found is that an in-town lake home is not only affordable, they are available.

Focusing on the north east metro counties of Anoka, Chisago, Ramsey and Washington, I discovered some interesting facts. I set up a search for lakeshore homes sold that had at least 3BR/2BA and a garage and listed after August 1, 2007. The homes had to be a single family dwelling, not a town home or condo. There were 24 homes that met these criteria. I then took a closer look homes that sold for the lowest and highest price in each county. Since most homes sat on the market for several months, there were some amazing price concessions by sellers. The 24 listings were on the market an average of 178 days. But when I looked closer at the homes, I realized that this was not accurate. Many of the homes were cancelled and re-listed so the DOM would start again at zero. (In my estimation, the average time on the market for north metro lakeshore is 9 months to a year.)

So where are the deals on Minnesota Lakeshore? All over! Here are some of the highlights:

Sale Price of Lakeshore Homes in Anoka, Chisago, Ramsey and Washington County Fall06/Winter07

Anoka County
Lowest Sold Price $225,000
Highest Sold Price $507,750
Average $389,550
Total Homes Sold: 5

The lowest priced lakeshore home sold during the past 6 months was in northwest Anoka County in the little community of Burns Township. It was Twin Lakes rambler on 400 ft. of shore with 3BR/2BA and a 2 car garage. It sold for $225,000.

On the other end of the spectrum, in southern Anoka County, a Lino Lakes home with 100 feet of shore on Reshanan Lake. It originally listed for almost 2 years ago for $585,000 but sold for just $507,750. This home is located with a quick commute to either downtown is a multi-level home with 4BR/3BA and a 3 car garage.

Chisago CountyLowest Sold Price $292,500
Highest Sold Price $486,000
Average $382,125
Total Homes Sold: 5

Both the lowest and highest priced sold homes were located in Chisago Township about 45 minutes northeast of downtown St. Paul. The lower priced home boasted 150 ft of shoreline on Chisago Lake. It was a 3BR/2BA/2Car home built in 1956 and sold for just $292,500. On the high end, was a 2002 built lake home on Green Lake with 85 ft. of shore. It was listed at $534,900 but sold for $50,000 less after 6 months on the market.

Ramsey CountyLowest Sold Price $293,550
Highest Sold Price $673,000
Average $423,890
Total Homes Sold: 8

Ramsey County is the heart of the east metro and is home to the capital city, St. Paul. Surprisingly, there were some lakeshore bargains here as well. On the low end of the spectrum, there was a home with 100ft of shore on Goose Lake. The home located in White Bear Lake originally listed for $389,000 but after six months on the market sold for $295,550, nearly $100K less!

On the more expensive side was a North Oaks home with 150 ft of shore on Charley Lake. The home is on a 1.3 acre parcel in a private community. The 2 story was built in 1980 with 5BR/6BA/3Car. After being on the market for just over a year, it sold for $673,000.

Washington County
Lowest Sold Price $399,000
Highest Sold Price $1,599,000
Average $822,483
Total Homes Sold: 6

Washington County was home to the most expensive and fastest lakeshore sales in the north and east metro during the past six months. But there were bargains here as well. At the low end a lakeshore home in Oakdale, on Park Lake sold for at the listed $399,000 in just 45 days. At the other end of the spectrum a Mahtomedi 1930’s charmer on White Bear Lake sold in just 15 days for $1.6 million.

Are you interested in buying Minnesota Lakeshore? Now is the time. There are still hundreds of homes on lakeshore listed on the Twin Cities MLS. Many of these beautiful homes have been on the market for several months. Most of my clients are asking to be emailed with immediate listings of "just listed" and "just reduced in price homes". With the right offer and Realtor who understands the lakeshore market, you could be spending this summer on a Minnesota lake!

Contact me today to be set up for automatic lakeshore listings. Emails will be sent immediately when a price drops on a lakeshore home or a new listing hits the market.