Thursday, September 11, 2008

Think Now is a GREAT Time to Make a DEAL on a MN Lakeshore Home? I Do!

As recently as five years ago, the prices on Minnesota lakeshore were out of reach for many buyers. Prices shot up in the late 1990’s. Lake lots on Coon Lake in Anoka County that went on the market in 1998 for $60,000 were re-sold three years later for over three times that at $200,000. Homes on lakeshore saw similar increases. At the time, there didn’t seem to be an end in sight to what someone would pay for lakeshore in the Twin Cities. Well times have certainly changed.

A couple of years ago, “The Buyer’s Market” hit the Twin Cities and communities in the north metro. If there is one silver lining to the real estate woes of late it is the newly affordable prices for would-be lake home owners. As the buyer’s market has continued for several years, the price of lakeshore properties is once again within reach of many average Minnesotans. For years, lake-lovers only affordable options were
channel shore and deeded access. Now actual shoreline is affordable again.
The affect the buyer’s market has had on the prices of lakeshore in Minnesota is nothing short of drastic. With so many homes available, buyers have had a selection of properties that hasn’t been seen for nearly a decade. This array of homes includes 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 first eight months of 2008. As a Realtor working in the north east metro for several years, I knew it was difficult to find reasonably priced Minnesota lakeshore in just a few years ago…especially properties located in areas with a quick commute to downtown. 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, there are several lakeshore properties available at ALL price ranges.
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 closed after January 1, 2008. The homes had to be a single family dwelling, not a town home or condo. There were 94 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 unbelievable price concessions by sellers. The 94 listings were on the market an average of 233 days. But when I looked closer at the listings, I realized the cumulative days on the market was significantly higher. 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 18 months to 2 years.)

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

Anoka County
Lowest Sold Price $203,000
Highest Sold Price $750,000
Average $380,348
Total Homes Sold 23

The lowest priced lakeshore home sold to date in 2008 was in southern Anoka County in Spring Lake Park. It was a 1988 three level split in foreclosure on Spring Lake with 5BR/3BA and a 3 car garage. It sold for $203,000.

On the other end of the spectrum, just to the north in Blaine, a 2005 built home sold with picturesque views of Sunrise Lake. It originally listed over 2 years ago for $974,900 but sold for just $750,000. This newly constructed home is a two-story home with 4BR/4BA and a 3 car garage.

Chisago County
Lowest Sold Price $150,000
Highest Sold Price $640,000
Average $366,057
Total Homes Sold 15

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 200 ft of shoreline on South Center Lake. It was a 20BR/9BA former group home built in 1900 and sold for just $150,000 after being on the market for over two years. Its original list price was $495,000. On the high end, there was a 2004 built lake home on Spider Lake with 211 ft. of shore. It was bankowned new construction with 4BR/5BA, a 4-Car garage on 3.28 acres and originally listed in 2005 at $999,900.

Ramsey County
Lowest Sold Price $229,900
Highest Sold Price $2,275,000
Average $705,370
Total Homes Sold 24

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 3BR/4BA/2Car Moundsview home built in 1974on White Oak Lake. It originally listed in early 2007 for $295,000 but after a year on the market sold for $229,900, over $60K less!

On the more expensive side was a North Oaks executive home Black Lake. The home is on a 6.64 acre parcel in a private community. The brick rambler was built in 2005 with 4BR/5BA/6Car and 6300+ finished square footage. After being on the market for just 30 days, it sold for $220,000 less than asking price.

Washington CountyLowest Sold Price $216,284
Highest Sold Price $2,400,000
Average $594,628
Total Homes Sold 32

The average price of a lakeshore home took quite a tumble since 2007 in Washington County as there were many homes sold at very good prices.. At the low end a corporate-owned lakeshore home in Scandia, on Lake Sylvan sold $216,284 with a $12,000 seller paid contribution. This home originally listed four years ago for $309,900. The Washington County high ticket home sold so far in 2008 is located in Dellwood. The unique executive home with 140 ft of sandy beach on White Bear Lake sold after 175 days for $305,000 less than asking price. The home has 3BR/3BA/3Car and 3 fireplaces!

**All Statistical information based on information from the REGIONAL MULTIPLE LISTING SERVICE of MINNESOTA, INC. for the period of 1 /1/08 through 9/10/08.

If you are buying, selling or relocating to Minnesota and need help from a professional REALTOR®, give me a call or visit my website for a FREE Relocation Packet. I specialize in acreage and lakeshore properties in the north and east Twin Cities metro area including Ham Lake, Lino Lakes and all communities in the Forest Lake School District! Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.

Copyright 2008