May 21, 2009
It is really too early to come to any conclusions.
But in an attempt to answer the nearly daily question of… “Is anyone buying?”, here are some very preliminary indicators from the current local lakeshore market.
1) First of all, 2008 was the worst sales year of the previous 5 years.
2) To date this year, closed and pending sales have doubled from 2008.
3) In the last 5 years, anywhere from 10% to 30% of the total year sales were posted before the Memorial Day holiday.
4) Using the facts in #2 and #3 above, it would be reasonable to project that 2009 will, at least, be a better sales year than 2008, or, at most, be the best sales year since 2004.
I’m gonna call it. The bottom is in.
I have been reading through your blog and I have read blogs all around North America. I do believe that the market has picked up considerably. Many areas of the country seem to be selling hand over fist. In Bergen County where I am we are experiencing a large pick up in our market. I think Minnesota was not a big speculative area as Nevada, Arizona, Southern California and Florida, nor was Bergen County New Jersey where I am from. Lets hope it continues!
I had blogged for low mortgages and we have them. Pent up demand and low prices seem to do it all.
Comment by Richard Stabile Bergen County New Homes — May 21, 2009 @ 8:07 pm
Bill what are you seeing for $/SF of lake shore. Neighbor just put his small cabin on Lake Vermilion on the market for three times what he bought it for in 2000. I think it is worth half to two thirds that price.
Comment by Andy — May 27, 2009 @ 12:12 pm
I have tried to avoid the practice of offering lakeshore frontage as the only criteria to value a lakeshore property. There are too many other factors that should be considered for a complete evaluation. On Lake Vermilion you can find current lake shore listings that have a price per running foot lakeshore from $200 to $2,400 per foot!
Thanks for your interest!
Comment by Bill — May 27, 2009 @ 3:00 pm