Lake Home Market Report for Ottertail & Becker Counties

By
Industry Observer with Cold

Sales figures for Lakeshore Residential Properties Feb & Mar 2009:

 

Detroit Lakes MLS information

 

Fergus Falls MLS information

 

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

           

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. 

 

Detroit Lakes Area

 

Fergus Falls Area

 

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.

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Real Estate General Information
Location:
Minnesota Otter Tail County
Groups:
Posts to Localism
Market Reports
Tags:
market report
lake homes
becker
ottertail

Spam prevention
Show All Comments
Rainer
20,104
Nobody Here
Cold - Algoma, ON

Wow, this post did not copy as well as I had hoped.  Sorry for that folks.

Apr 16, 2009 06:08 AM #1
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainer
20,104

Nobody Here

Ask me a question
*
*
*
*
Spam prevention

Additional Information