WHY VACANT INTERIOR LAND SALES ON MADELINE ISLAND LAG BEHIND WATERFRONT SALES

Interior land prices on Madeline Island are at record lows, yet no one seems to be buying.  Many of our Island sellers are puzzled about this.  Here are a few reasons why vacant interior land seems to be experiencing a slowdown.

1) The vast majority of our prospective buyers are either looking for existing waterfront homes or buildable vacant waterfront lots.  They want an affinity to Lake Superior.  They're looking for either a water view or a beach lot, maybe with a dock or a shoreline staircase.  For the same reason, resales of interior homes are very slow right now on the Island. 

2) Interior lots may be more affordable, but the costs of building on Madeline Island are somewhat higher than on the mainland,  So if a buyer is going to go to the trouble and extra expense of building, they might just as well spend enough to buy and build on a lakeshore lot.

3) Building permits have become difficult to obtain in our community.  The hassle of obtaining permits can be daunting to a buyer who is unfamiliar with our local zoning ordinances and the process of obtaining permits.

4) Few lenders are making land loans.  In the majority of cases, the buyer of a vacant parcel will have to come up with cash. 

What does this mean for the owners of interior property who wish to sell? 

Expect interior land prices to remain flat or to decline a bit more over the next twelve months.  Inventories of interior parcels remain stubbornly high and demand is down. 

The best prospects for a sale will be the most prime parcels, priced as affordably as possible.  Deeded lake access lots (with shared use of a beach or dock) should lead the pack.  Large acreage interior lots of 20-40 acres or more require a specialty buyer, so I don't see large acreage prices remaining at their current highs.