It seems that the "perfect storm" hit Lake Lanier last year. First, were the effects of a two year drought which not only left little recreational water but almost left the city of Atlanta without drinking water (oh, those endangered mussels in Apalachicola are special creatures). Then to make matters worse, the mortgage "crisis" and credit crunch hit. The good news is that lake levels are rising (although still a far cry from full pool), drought conditions are not predicted for the summer, and prices for lake front homes for the first quarter of 2008 were, on average, about 2.5% higher than the first quarter of 2007 (based on FMLS data)! The average list price for the first quarter of this year was approximately $691,000. There are currently 17 properties pending and the average list price of those properties is about $711,000...more good news! Having said all of this, supply is still outpacing demand. Almost 50% fewer homes sold in the first quarter of 2008 compared with the first quarter of 2007, and there are currently about 49 months of inventory for lake front single family residential homes.
The reality is that while inventories are high, lake front properties will hold their value over time. Again, it's the issue of supply and demand since there is a limit to lake front property. Now is a great time to consider buying that lake home you've always wanted.
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