{"id":24338,"date":"2024-08-27T08:51:59","date_gmt":"2024-08-27T13:51:59","guid":{"rendered":"https:\/\/www.lakehomes.com\/info\/?p=24338"},"modified":"2024-09-11T07:44:24","modified_gmt":"2024-09-11T12:44:24","slug":"major-shift-coming-for-lake-real-estate-amid-nar-settlement-unofficial-housing-recession","status":"publish","type":"post","link":"https:\/\/www.lakehomes.com\/info\/lifestyles\/major-shift-coming-for-lake-real-estate-amid-nar-settlement-unofficial-housing-recession","title":{"rendered":"Major Shift Coming for Lake Real Estate Amid NAR Settlement & Unofficial Housing Recession"},"content":{"rendered":"\n

<\/path><\/svg><\/span><\/span>Estimated reading time: <\/span>8<\/span> minutes<\/span><\/p>\n\n\n\n

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As the U.S. housing market contends with an unofficial recession and the impact of the NAR (National Association of Realtors) commission lawsuit settlement, the lake real estate market is showing resilience.<\/p>\n\n\n\n

The settlement, which took effect on August 17th, significantly alters how real estate agents conduct transactions across the country. Despite these sweeping changes and challenging market conditions, the lake real estate market is strong, with a slight uptick anticipated for the remainder of 2024.  <\/p>\n\n\n\n

This fall offers a broader selection of properties. The Fall 2024 Lake Real Estate Market Report by Lake Homes Realty indicates there are now 104,503 lake home and lot listings, an increase of 14,961 from the 89,542 listings available in fall 2023.<\/p>\n\n\n\n

But that\u2019s not all\u2014the total market value of these listings now stands at $59.42 billion, highlighting a strengthening market with significant investment potential. This marks a positive shift from the $49.85 billion reported in Fall 2023. With more options and a rising market, this fall offers an ideal opportunity for buyers to discover their dream lakefront property.<\/p>\n\n\n\n

Lake Real Estate to Outrun Housing Recession? Data Points to YES!<\/h2>\n\n\n\n

The broader housing market may be weathering a storm, however, Glenn S. Phillips sees lake real estate as a sturdy lighthouse, standing strong against the turbulent waters. As CEO and Chief Economic Analyst for Lake Homes Realty, Phillips expects, \u201clake real estate and other discretionary housing to break out of this lull faster than most primary residential markets.\u201d<\/p>\n\n\n\n

With mortgage interest rates expected to drop this fall, Phillips frequently hears the question: Will this lead to more real estate deals? His surprising reply: \u201cNo, not for lake homes.\u201d What makes him so sure of this? Well, he points out lake home buyers often pay cash with over 50% of Lake Homes Realty\u2019s transactions nationwide not involving a mortgage. In addition,\u201cbuyers who can afford these properties and desire a mortgage can often get the best rates anyway.\u201d<\/p>\n\n\n\n

Looking ahead, the remaining months of 2024 will witness a modest uptick in lake property sales. Phillips attributes the modesty of this increase to several factors, such as anticipation of election results, fewer real estate contracts written from the week of Thanksgiving through the end of the year, and that the turn to more appropriate list prices has only just begun.<\/p>\n\n\n\n

In contrast, a more significant increase of at least 15% is anticipated in 2025 for year-over-year transactions. Phillips notes, \u201cMore owners are ready to sell, and they are becoming more realistic instead of \u2018overly aspirational\u2019 in their pricing. In other words, they will be more serious about actually selling instead of dreaming (falsely) of a big profit.\u201d<\/p>\n\n\n\n

Finally, Phillips attributes this expected increase in lake properties for sale to what he refers to as the \u201cmany D\u2019s\u201d, including \u201cdeath, divorce, debt, dreams and distraction (on to a new lifestyle), disability and dementia (aging homeowners no longer suited for lake activities), downsizing, distance (tired of the drive to this second home), and diamonds (a new marriage may call for a different home).\u201d After years of anticipation, all the necessary factors seem to be converging, prompting many lake homeowners to finally abandon their hesitation and sell.<\/p>\n\n\n\n

Welcoming the NAR Lawsuit Settlement<\/h2>\n\n\n\n

As mentioned previously, the NAR commission lawsuit settlement recently went into effect August 17. The lawsuit is expected to reduce real estate agents’ commissions, which may lead to savings for homeowners. <\/p>\n\n\n\n

The impact of the settlement on lake real estate \u201cwill take a few months to evaluate,\u201d Phillips acknowledges. However, he anticipates that the lake real estate market will be less affected. It’s a unique perspective, given that a significant portion of the real estate industry appears to be flailing after this settlement was reached. <\/p>\n\n\n\n

Why lake real estate will be less affected are the same reasons the lake real estate market is resilient during this unofficial housing recession: lake home buyers and sellers are financially equipped to pay for quality real estate agent services and are more inclined to seek expert guidance. <\/p>\n\n\n\n

\u201cThey don\u2019t hire the cheapest attorneys or look for the cheapest doctors,\u201d Phillips noted, \u201cand they understand that a true expert in any financial transaction can more than cover their costs.\u201d
The impact of this settlement is that agents who fail to provide genuine value may have no choice but to leave the industry.<\/p>\n\n\n\n

As the nation’s leading lake real estate brokerage, Lake Homes Realty possesses extensive data on thousands of lake markets nationwide. This exclusive information, unavailable to any other brokerages, companies, or analysts, enables the brokerage\u2019s agents to serve as trusted local authorities on market trends and consumer behavior.<\/p>\n\n\n\n

Returning to a ‘Softer’ Seller’s Market<\/h2>\n\n\n\n

Data from LakeHomes.com suggests a potential shift towards a more balanced “softer” seller’s market for lake properties. The number of listings is steadily increasing, but more interestingly, average list prices have dipped for the first time in months.<\/p>\n\n\n\n

If these trends hold, the market will be conducive to more transactions. It’s too early to say for sure \u2013 two more months of data will reveal if this is a temporary fluctuation or a longer-term trend signifying increased market activity.<\/p>\n\n\n\n

Just like in previous years, overpriced properties remain a hurdle, regardless of marketing efforts. MLS listings and websites like LakeHomes.com ensure broad exposure to buyers. So, a lack of offers doesn’t stem from a lack of visibility. Savvy buyers simply won’t waste time on properties that aren’t priced competitively or within negotiation range. They’ll wait for a better deal, potentially for years.<\/p>\n\n\n\n

Top Lake Real Estate Markets Nationwide<\/h2>\n\n\n

This fall, Puget Sound leads with the most extensive selection of properties, boasting a total value of $1.74 billion in lakefront, lake view, and lake access properties across Washington State, according to Lake Homes Realty\u2019s Fall 2024 Lake Real Estate Market Report.<\/p>\n

Following Puget Sound, homebuyers seeking lakefront living have numerous options across the country. Other top contenders include:<\/p>\n