Whiteboard Topics: What Will 2024 Bring for Lake Home Prices?

With the new year, many people are wondering how the prices for lake homes will change in 2024. The short answer is that they’ll stay about the same in most markets, only slightly increasing in some markets. Glenn Philips, CEO of Lake Homes Realty, explains how years of data on the lake home market back this up.

  1. Limited (but improving) Inventory: 2022 brought historic lows in the lake home market. Even though the inventory has been growing since, it is still low when compared to nothing. Buyers still outnumber sellers, but the buying frenzy has passed. Additionally, informed buyers won’t bite on the trend of “phantom inventory,” or sellers who think they can still sell at peak prices.
  2. Mortgage Rates (Not Really): Mortgage rates don’t play a big factor in lake real estate. Over half of the buyers in this market pay with cash. Even if they don’t pay with cash, they can afford the splurge of the extra interest rate.
  3. Interested KNOWLEDEABLE Buyers: Buyers today are more informed than at any other time in history. This means that they won’t be tricked into paying unreasonable prices. Buyers who are interested and willing to wait until the right price shows up will move quickly to purchase it. This causes a backlog to form, with buyers waiting for sellers to bring down their prices to reasonable levels.
  4. Global Unrest: Global unrest tends to increase interest in discretionary property. People want lake homes to escape the problems of the world. It happened during the COVID-19 pandemic, as people rushed to buy lake homes to escape and distance themselves.

As 2024 rolls in, expect to see steady prices in most markets for lake homes. There won’t be many major shakeups, such as a big explosion or crash. There might be slight increases in some markets, but prices will stay consistent across the board. Be sure to visit us at lakehomes.com, where you can find agents that are experts in lake property.

Chris Melton

Born and raised in Birmingham, Alabama, I have a strong connection with the area. Graduating from the University of Alabama at Birmingham with a degree in Digital Marketing, I bring both experience and knowledge to the marketing workplace. At Lake Homes Realty/Beach Homes Realty, I use this knowledge and expertise as the Digital Marketing Coordinator.