lake lots Archives

Lake Home and Lot Listings Surge by $6.4 Billion Amid 19% Inventory Boost

Posted on April 3, 2024April 3, 2024 Linda Thach

April 2, 2024 – Hoover, Ala. – Great news for potential lake home or lot buyers! This spring offers a wider selection of properties. According to the Spring 2024 Lake Real Estate Market Report by Lake Homes Realty, there are currently 83,467 lake home and lot listings available. This represents an increase of 13,366 from the 70,101 listings seen in Spring 2023.

That’s not all – the total market value of these listings sits at $44,111,017,837, demonstrating an improving market with investment potential. This is a positive shift compared to the $33.74 billion and $26.13 billion reported in Spring 2023 and 2022 respectively. With more options and a growing market, this spring presents an excellent opportunity to find your dream lakefront property.

Top Lake Real Estate Markets Nationwide

Boasting the most extensive selection of properties this spring is Lake Michigan. This lake has a total value of $1.46 billion across lakefront, lake view, and lake access properties in Illinois and Michigan, according to the Spring 2024 Lake Real Estate Market Report by Lake Homes Realty.

Following Lake Michigan, homebuyers seeking lakefront living have a variety of options across the country. Here are some of the other top contenders:

Twelve states serviced by Lake Homes Realty had more than one billion dollars in lake home and lot real estate listings, according to the quarterly report.

Leading the pack is Texas with a total of $8.139 billion, followed by Florida in second place with $5.287 billion, and Washington state securing the third spot with $2.762 billion. The other $1 billion+ states in order include: North Carolina ($2.432), Tennessee ($2.376), Georgia ($2.134), Minnesota ($1.909), Michigan ($1.783), Alabama ($1.390), South Carolina ($1.274), Missouri ($1.206), and Illinois ($1.181).

For the total number of listings, Texas had the most lake home and lot listings (15,393), followed by Florida (9,648), Tennessee (5,880), North Carolina (4,354), Georgia (4,174), Missouri (3,677), and Alabama (3,629).

For the most expensive lake home averages, Florida, Washington, and Montana were the top areas featured. The average for lake homes on Lake Butler, Florida was $4.634 million each. Lake homes on Lake Washington, Washington averaged $4.094 million and Whitefish Lake, Montana homes were $3.894 million. Among all of the homes and lots featured on LakeHomes.com, the average price was $528,484.

Don’t Be Fooled By Headlines

“Sellers and buyers should not be fooled by headlines that tout significant increases in home inventory,” urged Glenn S. Phillips, CEO and Chief Economic Analyst for Lake Homes Realty. “Home Listing Inventory Doubles!” is not very meaningful when the base number you are doubling is very small. For instance, going from 200 to 400 homes is meaningful, but going from 15 to 30 is still sparse although both are ‘doubling’,” Phillips explained. “Any market with historic lows can improve and still be very limited.”

Phillips continued, emphasizing Lake Homes Realty is in a “soft” seller’s market, “Any market with historic lows can improve and still be very limited.” “Unfortunately, many sellers falsely believe they are in a ‘hard’ seller’s market and foolishly demand higher-than-market prices,” Phillips said. “These sellers are overpricing themselves right out of the market.”

He added, “This does boost inventory numbers (since these homes don’t sell very often) but that is a false flag about the market.”

Lake Home Buyers: Savvy and Selective

Lake home buyers are entering a new era of informed decision-making, according to Phillips. He emphasizes the heightened awareness of today’s buyers, stating, “They know the market, the trends, the transactions, and the lousy and overpriced listings.”

This knowledge translates into behavior, as Phillips explains, “Lake home buyers recognize homes online that have been on the market for over a month. These buyers consider these homes grossly overpriced and have no interest in wasting time asking about these properties, much less touring them.”

In short, Phillips concludes, “Lake home buyers are eager but not foolish.” They are prepared to act quickly on properties that meet their needs and price expectations.

Lake Market Myths Debunked: Inventory Up, Prices Stable

“No bust coming. There is nothing on the horizon that will create a large surge of lake properties for sale,” assures Phillips.

Phillips offers reassurance to those concerned about a market downturn, explaining, “We are seeing an increase in inventory over this time last year and anticipate more homes and lots will come on the market as the weather warms and lake season hits high gear.”

To further support his point, Phillips provides historical data: “Over the past five quarters, our Lake Real Estate Market Reports show listings from our 34 states to range from as few as 70,101 and as high as 89,542. In the quarterly snapshots of the lake real estate market, total inventory list prices over the same five seasons collectively ranged from $44 billion to nearly $50 billion,” he said. He concludes by highlighting price stability, stating, “The average of all our inventory, both lake homes and lots, ranged from $528,484 to $556,758.”

Top 10 States for Lake Property Listings

Top 5 Most Expensive Lakes for Home Listings (Average Price)

Lake Butler, FL – Avg. of $4,634,656
Lake Washington, WA – Avg. of $4,094,885
Whitefish Lake, MT – Avg. of $3,894,179
Heron Lagoon, FL – Avg. of $3,853,197
Flathead Lake, MT – Avg. of $3,541,252

Top 5 Lakes for Number of Home and Lot Listings

The Spring 2024 Lake Real Estate Market Report shares a summary of data collected from 146 Multiple Listing Services (MLS) areas in the 34 states served by Lake Homes Realty and is, to its knowledge, not available from any other source. Copies of the Spring 2024 Lake Real Estate Market Report are now available to download for free at www.lakehomes.com/report.

Whiteboard Topics: Why Buy a Lake Home on a Leased Lot?

Posted on March 1, 2023March 1, 2023 Kamari House

Leased lots are more common around the lake than you think. Lake Homes Realty’s CEO, Glenn Phillips, shares why you should consider purchasing these properties.

Common on Many Lakes: Larger lakes were built by power companies, and in order to maintain control of the surrounding land, they prefer to lease lots instead of selling them.
Buy House, Transfer Lease: When buying a home on these lots, the lease will get transferred to the new owners of the property.
Reconsider Time of Homeownership: There’s no need to fear the time length of a lease. If you want to stay longer than your allotted time, you can always renew it. If you’d like to leave sooner than expected, the lease will be transferred to your buyers.
Can Still Finance a Home: Local lenders who are familiar with this structure will have no issue helping you finance.

Buying on a leased lot is a great option for buyers. Remember, you aren’t restricted to the timeframe of the lease because of renewal and transfer options!

Whiteboard Topics: Understanding Leased Lots for Lake Homes

Posted on May 12, 2021May 12, 2021 Linda Thach

Did you know that many lake homes are built on leased lots? In this video, we demystify what misconceptions you may have in regards to leased lake lots.

Shoreline Ownership. Oftentimes, lakes are owned by public or private utility companies, the Corp. of Engineers, the Tennessee Valley Authority, etc. Because of this, lots on these lakes are leased.
Lease Duration. Leased lots typically have long terms. It’s not uncommon to see durations range anywhere from 25 to 99 years. Because most homeowners don’t own their lake homes for more than 20 years, these long-term lease durations are factors that lake home buyers must consider when purchasing or building a home on a leased lot.
Mortgage Impact. Getting a mortgage on a leased lot is not unusual and happens quite often with lake homes. But one of the concerns that potential lake homeowners could encounter is how the mortgage term could impact the lease term duration. For instance, a lender may not approve a 30-year mortgage for a lake home that is on a 25-year lease.

Who Owns Your Lake Shoreline?

Posted on May 17, 2015January 19, 2023 Glenn S. Phillips

Having property on a lake is amazing, but when it comes to the lake shoreline, someone else – depending on the situation – may own it. For instance, some properties entitle you to use the water, but not to construct a dock or other structure by the shoreline.

Before purchasing a home on the lake, make sure you ask about shoreline ownership.

Power Companies

Power companies often build lakes for hydroelectric power generation and similar uses; this means that the company owns the lake. However, they may allow the land around the lake to be sold or leased. Many times these leases are for long periods of time – such as 100 years (more on that later).

Usually, these lakes are open for recreational use. But, the power companies that own them typically instruct homeowners and visitors to follow certain restrictions and user guidelines.

Private Property Owner

Say there is a large acreage property with a lake on it. If the lake is situated completely within the land’s perimeter, then the owner of the land also owns the lake. The lake is considered to be private property, and the owner can do with it as they wish.

Another private property example is when a home is on land that extends to the lake shoreline, but the lake itself is not part of the land purchased.

In this instance, only the property is private. A real estate agent will be able to tell you where the property line ends and where dock construction is permitted.

In other instances, property owners own the home, the land, and part of the shoreline. If your property includes shoreline ownership, its value could increase.

Corps of Engineers

Part of the U.S. Army Corps of Engineers’ role is “planning, designing, building, and operating locks and dams.”

The Corps owns and operates more than 200 locks and dams throughout the United States, and in many instances owns the lake, shoreline, and property in the immediate area.

Although on some lakes property can be sold for private ownership and use, there are other lakes on which no private construction or ownership is allowed.

However, even if no private construction or ownership is permitted, the Corps usually provides public access boat ramps so that people can still enjoy the lake by boat. They are are also usually public campgrounds and nature areas located nearby.

Leased Lots

As previously mentioned, some entities, like power companies, own a lake and the surrounding land but offer leased lots. These leased lots can be confusing to those who do not have experience dealing with them.

If you buy a home on a power company-owned lake, the home you purchased will be yours. The land, however, may be leased from the power company. But you don’t have to worry about the length of your lease term. Many lakes will lease land in 100-year terms.

Buying a home on a leased lot is almost a hybrid between an inheritance and a leasing agreement.

Buyers don’t have to re-negotiate lease terms with every property purchase. Instead lease agreements, responsibilities, and property additions – like boathouses and docks – are “passed down” to the next buyer.

An important thing to remember about leased lots though is that the original landowner (the utility company) maintains ownership of the land and lake shoreline when leasing terms expire.

Violating shoreline ownership rules and restrictions can result in fees and fines owed.

Before purchasing a home on the lake, ask your real estate agent about the shoreline. Any lake expert agent will be able to tell you who owns the shoreline and what restrictions may be in place.