Thursday, August 8, 2013

Is this the Summer to Buy a Minnesota Lake Home?



Early this spring, I was contacted by a potential seller on Coon Lake in Anoka County. They were contemplating listing their lake home but hadn’t quite decided if this was the year to make a move or not. I completed a market analysis for their beautiful home and property. The current activity really spurred my interest in that area so I have been keeping close tabs on that market ever since. It was simply amazing to me how affordable lakeshore was in the north and east Twin Cities metro even as prices on homes were rising. It should have been no surprise based on the affordability and low interest rates that lake homes really sold quickly in Anoka County this year.

So this got me thinking and once again I decided to check on what was happening on other lakes in north and east Minneapolis/St. Paul market. I decided to once again to ask the question, 

Is this the summer to make a  GREAT DEAL on a Minnesota Lakeshore Home?  

 

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 half of 2013. As a REALTOR® working in the north east metro for over a decade, I knew at one time it was difficult to find reasonably priced Minnesota lakeshore…especially properties located in areas with a quick commute to the downtowns and airport. During the slump, while home prices were affordable, lakeshore owners seem reluctant to sell at distressed prices. The market has changed once again so are metro lake homes now affordable or are prices on the rise?

Focusing on the north east metro counties of Anoka, Chisago, Ramsey and Washington, I discovered some interesting facts. I set up a quick search for lakeshore homes SOLD and closed after January 1, 2013. I found 181 single family lakeshore homes that met these criteria. I then took a closer look homes that sold for the lowest and highest price in each county. The 181 listings were on the market an average of 89 days. But as one can expect, the cumulative days on the market was significantly higher at 190 days on the market since many lakeshore homes are removed from the market every fall and relisted again in the spring. When cancelled and re-listed the DOM would start again at zero. However, just a few years ago, the average time on the market for north metro lakeshore was roughly 2 YEARS on the market instead of this more reasonable, six months. So market time has gone down on lakeshore homes, but have prices gone up? On average, no. 



So where were the deals on Minnesota Lakeshore during the first half of 2013? All over the north metro! 
Here are some of the highlights:


Anoka County


Lowest Sold Price $75,000 (Original list price $79,900)
Highest Sold Price $729,800 (Original list price $849,900)
Average $343,472
Total Homes Sold 39

The lowest priced Anoka County lakeshore home in the first half of 2013 was on Coon Lake in the northern community of East Bethel. It was a 1950 cabin being sold by a traditional seller as a tear down or fixer-upper. It was a 2BR/1BA and a 1 car garage with 200 feet of lakeshore. It sold for $75,000 after just 4 days on the market.

On the other end of the spectrum, in the south east corner of Anoka County  in the community of Lino Lakes, a 2004 built 2 Story executive home sold with picturesque views of the environmental Amelia Lake. After multiple price drops to $749,900 and well over a year on the market the home was sold for $729,800. This 3BR/4BA home was chock full of the upgrades including 7+ garage stalls, master suite and 6 acres of privacy.
 
Lowest Sold Price $ 72,500 (Original list price $ 90,000)
Highest Sold Price $ 585,000 (Original list price $625,000)
Average $247,073
Total Homes Sold 53

The lowest priced home was another cabin sold by a traditional seller that was in need of a good clean up or a tear down. It was a 1950’s rambler one bedroom with no bath or garage, located on North Center Lake in Chisago Lake Township. This cabin sold in 13 days for $72,500.

On the high end, there was a 1979 built lake home on Green Lake with 1200 ft. of peninsula shoreline located in Chisago City. This 4BR/2BA stucco/brick rambler with a 3 car garage was a beauty! The home was situated on 3 acres and sold by a traditional seller. It was listed this spring at $ 625,000 and sold in 13 days for $585,000 though its cumulative days on the market was well over a year.
 
Lowest Sold Price $130,600 (Original list price $154,900)
Highest Sold Price $1,270,000 (Original list price $ 1,599,000)
Average $469,897
Total Homes Sold 36

Ramsey County is the heart of the east metro and is home to the capital city, St. Paul. On the low end of the spectrum, there was a 2BR/2BA/2 Car One and a half story in Maplewood built in 1944 on Carver Lake. It originally listed early in 2013 for $154,900 and took 85 days before it sold as a bank-owned/foreclosure property for $130,600.

The spendy side of Ramsey County featured a North Oaks executive home on Pleasant Lake. The two story stucco home was built in 1982 and sits on 1.4 acres with 5BR/4BA/3Car and 11,100 finished square feet. After being on the market for cumulatively nearly 2 years and a quarter of a million dollar price drop, it sold for $1,270, 000.

Washington County
 
Lowest Sold Price $ 55,500 (Original list price $ 93,900)
Highest Sold Price $800,000  (Original list price $ 995,000)
Average $457,066
Total Homes Sold 53

The biggest lakeshore bargain in Washington County in the first half of 2013 was corporate-owned lakeshore home on Sylvan Lake in Forest Lake. It sold for $55,500 cash after being originally listed for $93,900 earlier in the year. This 2BR/1BA home without a garage was built in 1960 home was sold by the bank as a foreclosure.

The Washington County high ticket home sold so far in 2013 is located in Baytown Township with shoreline on environmental McDonald Lake. The 1995 multi-level brick home was built on a 3.8 acre estate and included an indoor pool/spa and sport court. It took 493 cumulative days to sell this 5BR/5BA/3Car executive home.

Bargains are STILL out there!

Currently there are over 250 single family lakeshore homes on the market throughout the Twin Cities north metro. As of today, there are 28 listed in Anoka County, 80 in Chisago County, 68 in Ramsey County and 83 in Washington County. Prices range from $ 87,500 to $2.65 million and everywhere in between! The deals on Minnesota’s sandy shorelines are out there! Your Minnesota lakeshore dream home could be closer than you ever imagined!

Looking to make a deal on a Minnesota Lake Home? Email or call me for a current list of most promising, affordable lakeshore home listings in the north and east metro. If you are thinking of selling a lake home, there is still time to get listed and sold before the snow flies and lake freezes! 



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