Sales figures for Lakeshore Residential Properties Feb & Mar 2009:
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Detroit Lakes MLS information |
|
Fergus Falls MLS information |
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Feb 09 |
March 09 |
Feb 09 |
March 09 |
|
|
Closed Sales |
6 |
8 |
1 |
4 |
|
|
New Listings Added |
47 |
52 |
19 |
36 |
|
|
Pending Sales |
4 |
3 |
6 |
2 |
|
|
Active Listings |
341 |
385 |
267 |
290 |
|
|
Median Sold Price |
$215,000 |
$190,000 |
$235,000 |
$299,000 |
|
|
Average Sold Price |
$223,083 |
$278,062 |
$235,000 |
$289750 |
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Analyzing sales numbers for lake properties is always difficult in the winter months. The seasonal dips are dramatic and the low numbers make reading a trend almost impossible. Unfortunately, my magic crystal ball is also in the shop this week, so I have no predictions for this summer.
One important fact to note as we go into the spring season is that the number of lake homes currently on the market remains high. Last summer, the monthly sales for the Detroit Lakes area MLS bounced around that 20-30 homes/month range. The Fergus Falls area saw 15-20 homes/month sold. Even at those sales rates we have a high inventory of lake homes.
This high level of inventory creates some great opportunities for buyers looking to find the perfect lake home this summer.
“But according to the News, the prices are falling!!! Why buy now???”
True, in many parts of the country they are seeing falling prices. This is not to say lakeshore prices in Ottertail and Becker counties are also dropping. Just to check the local market I compared year-end sales averages for the last few years.
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Detroit Lakes Area |
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Fergus Falls Area |
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|
Year |
Average sale price |
% change |
Average sale price |
% change |
|
2004 |
$252,638 |
22.9% |
$255,880 |
N/A |
|
2005 |
$260,014 |
2.9% |
$244,785 |
8.4% |
|
2006 |
$292,493 |
12.5% |
$290,853 |
18.8% |
|
2007 |
$307,141 |
5.0% |
$254,440 |
(-12.5%) |
|
2008 |
$343,255 |
11.8% |
$276,966 |
8.9% |
I’ll admit these numbers surprised me a little. I expected the average sales price to be flatter over the last 2-3 years. In reality this is what we are seeing in most situations, no major price moves. Averages can be tricky with less homes being sold. One or two homes selling for over $500K can have a bigger effect on the average and skew the numbers higher. I suspect that has something to do with the recent price gains.
However, it is good to see lakeshore properties in this area are at least holding their value.
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