Three Reasons to Look For a Lake Home Sooner Than Later

Many of us dream of owning a lake home or a piece of lakeshore. There is a certain sense of freedom in knowing that you have a place to escape the stresses and the worries of ordinary life. A place where you can go and indulge yourself and do whatever you like to do, whether it be fishing, water skiing, or just enjoying watching the sun disappear behind the horizon. There is also a certain sense of security knowing that you have something special to share with future generations down the road.

The dream is nice, but the reality is better. You might want to start looking for a lake home now because this buyer’s market isn’t going to last forever. You might also want to consider the following points to help you jumpstart your lake home search.

Reason #1: The Baby Boomers

As of October 2006, there are 78 million baby boomers now living in the United States, 23% of which are at or nearing the usual retirement ages of 55 to 60. That percentage is steadily on the rise and many of them are on the hunt for their own little slice of lakeside paradise. According to a 2006 study commissioned by the National Association of Realtors (NAR), the boomers have been the most active consumers on the secondary property market for years. Boomers own an astonishing 57% of all the vacation and seasonal property in the United States. 13% of that population own two or more properties while 10% are interested in acquiring more.

In the next ten years, a projected 8 to 9 million currently employed baby boomers who are likely to retire. Many of them will be looking to invest in lakefront home and other vacation property, increasing the demand for an already limited resource.

Reason #2: We’re Running Out of Room

Vacationing “up north” used to mean having a place near Brainerd or Leech Lake. Northeastern Minnesota lakes and forests were considered too far away by most people living in the Twin Cities looking for a vacation getaway. But now, all that is changing.

The traditional lakeshore hotspots like Brainerd and Leech Lake areas have been developed to the point of near saturation. Bill Hansen, Jr., a real estate agent based in Longville, estimates that about 93% of the lakes in the Leech Lake area already have houses on them. This development has cause land and house prices to jump significantly. For instance, an excellent undeveloped lot in Becker County might have gone for about $15,000 or less in the early 1980’s. Now that same lot, if still undeveloped, could go for $180,000 to $300,000 and over depending on the lake.

Up north in the Arrowhead, crowded lakeshores might not be as pressing as issue, but as more and more people look further north for their lakeside getaway, the prices climb as well. Since 2000, lake home sales have nearly doubled. The past five years have seen the price of lakefront houses rise from $189,000 to $320,000. The more developed the new “up north” becomes; the prices will continue to rise.

Reason #3: Growing Environmental Concern

Now the rise in Minnesota's lake home prices is not necessarily a bad thing. Protecting the clarity and cleanliness of our waters ensures that future generations will be able to enjoy the beauty and joy we are blessed with today. However, stricter environmental guidelines have significantly slowed and even stopped new developments and lakefront properties from being built, contributing to a shortage of viable building land

The new environmental regulations can especially be difficult for lakeshore owners who may have bought land in the past thinking they could build on it later, only to discover that new environmental laws prohibit it.

Al Josef is the editor of LakeshoreDreams.com

Mike Munson Broker/ REALTOR®

Realty Executives Alexandria Home Sales

Alexandria MN 56308

320-763-7902

Toll Free: 866-336-2643

Munson@alexhomesales.com
www.realtyagentmn.com

Each Realty Executives Office Is Independently Owned and Operated

Information is deemed reliable but not guaranteed

Licensed in the State of Minnesota