A Clear Look at Clear Lake—Lakeshore Market Statistics for Forest Lake, MN

By
Real Estate Agent with Boardman Realty Minnesota License#90858

clear lakeA few weeks back I received a phone call from a lovely lady thanking me for my informative post on the lakeshore market in the Twin Cities north metro. She lives in Forest Lake on Clear Lake and was considering selling next summer After reading my article, Think Now is a GREAT Time to Make a DEAL on a MN Lakeshore Home? I Do!, she was concerned about the changing market and wanted more specifics on how homes on Clear Lake were fairing today. She didn't want a market analysis of her home, just some statistics on what was really selling on Clear Lake. I told her that was a very good question and the sales values would be very different than what was happening on other area lakes. I said that I would look into the situation further and get back to her. I also told her that her query could become my next post. She thought that was a terrific idea so here it is.

First of all, many people may not realize that the City of Forest Lake, Miinnesota has several lakes and the lake, Forest Lake itself is really 3 lakes, First, Second and Third. All three are full recreational lakes and are connected by channels but the lakeshore on the different has different levels of desirability and hence drastically differing values. First Lake is the largest and most coveted shoreline. Similarly, Clear Lake is nearby Forest Lake. It is a full recreational lake but it is not connected to Forest Lake. Many people driving past the City of Forest Lake as they head up on 35 toward Duluth will mistake Clear Lake for Forest Lake as it is the only lake visible from the freeway. It is just to the east of 35 and there is a small fishing pier and boat landing visible from the road.

So how has Clear Lake real estate faired dlakeuring the market slow down?

My research showed very little activity in the past year. In fact, only one home has sold so far in 2008 and three homes were sold in 2007. The home sold in 2008 had been recently remodeled and sold within days of listing for an amount significantly higher than its stated tax value. This is very unusual and on the surface sounds like great news for Clear Lake homeowners but it is only one house and so the information taken alone is misleading.

Taking the three homes sold in 2007 into account, the picture is clearer but not as rosy. Averaging all four homes, the days on the market (DOM) expands to 135 for the SOLD homes on Clear Lake. Since each of the homes is drastically different in age, style, shoreline, acreage and condition, I did not want to average the value. Rather I compared the homes sales prices to the current listed tax values from the Washington County Assessor.

Here is what I found:

  • A home on 217th sold for $463K and has a current tax value of $332K. It sold for significantly more than its tax value.
  • A home on Everton sold for $295K and has a current tax value of $277K. It sold for slightly more than its tax value.
  • A home on 210th sold for $320K and has a current tax value of $441K. This is significantly lower than the county has listed (and more in the norm for what is happening in the marketplace).
  • A home on Fondant sold for $682K and has a tax value of $530K. Again very high compared to the tax record.

Then I averaged the sales prices to come up with an average; it appears that the homes on Clear Lake are selling at 1.15% of tax value based on the 2007 and 2008 sales data.
There are also four homes currently listed on the lake that and the cumulative DOM is considerably higher. The average DOM is over 440 days for these four lakeshore homes. Also two of the homes are listed at prices significantly higher than tax value:

  • 21XXX Everton $270K List, $278K Tax
  • 21XXX Floral Bay $406K List, $441 Tax
  • 57XX 220th $680K List, $375K Tax
  • 51XX 217th $949K List, $703K Tax

The first two homes were originally listed at $340K and $475K respectively. I think it is possible that the prices on these homes were brought down to under tax value so that they would have a better opportunity to sell. This seems to be inline with what is currently happening in most segments of the real estate market today.

Since there were so few sales on Clear Lake, I also compared tax values to sale prices for lakeshore homes on Forest Lake during the past 12 months. On Forest Lake (Lakes First Second and Third combined), 17 previously owned homes sold with lakeshore. The tax record to sales price ratio was 1.01% just slightly over tax value.

To get a true picture of what a lakeshore home value would be in the market place today, it would be most prudent to have a property specific market analysis done. But, if you just want a ball park value, take a close look at your Washington County tax statement. Unless your home has significant recent improvements or is significantly distressed, its current value in today's market is very close to the assessed value.

More Articles on Forest Lake and Lakeshore that might be of interest:

If you are buying, selling or relocating to Minnesota and need help from a professional REALTOR®, give me a call or visit my website for a FREE Relocation Packet. I specialize in acreage and lakeshore properties in the north and east Twin Cities metro area including Ham Lake, Lino Lakes and all communities in the Forest Lake School District! Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.

Copyright 2008 Teri Eckholm  http://www.terieckholm.com/

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Posted by

Teri Eckholm. REALTOR with Boardman Realty, is a native Minnesotan who has lived and worked in the Minneapolis St Paul metro all of her life. She specializes in lakeshore homes, acreage properties and first time home buyers but assists anyone making a move in the north and east Twin Cities metro.

If you are buying, selling or relocating to Minnesota and need help from a professional REALTOR®, give Teri , a call or visit her website for a FREE Home Buyer Success Guide or FREE Home Value Report She specialize in acreage and lakeshore properties in the north and east Twin Cities metro area including Ham Lake, Lino Lakes and all communities in the Forest Lake School District! Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.

Copyright 2019 terieckholm.com

 

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Rainmaker
552,167
Lynda Eisenmann
Preferred Home Brokers - Brea, CA
Broker-Owner,CRS,CDPE,GRI,SRES, Brea,CA, Orange Co

Hi Teri,

Well done, a very detailed report, that lady would be well served if you represented her. You sure know your area! And you're right, one sale for the year does not make the market.

BTW, we have a Clear Lake here too in CA, it's up north. I wonder how many of them are found in the U.S.?

Oct 13, 2008 05:33 AM #1
Rainmaker
341,001
Art Kruschka
Administrative Manager - Manassas, VA
Manassas Woodbridge Dumfries Real Estate Sevices

Teri  Great scoop - It also appears Clear Lake is exactly that CLEAR.  Having been raised on the Atlantic Ocean lakes still seem strangw to me.  I keep wanting to see the tide come and go,  Art

Oct 13, 2008 06:56 AM #2
Rainer
172,655
Fred Chamberlin
Guild Mortgage Co - Oak Harbor WA - Oak Harbor, WA
Oak Harbor/Whidbeynulls, #1 Experienced FHA Mortgage Consultant

Lovely area. I agree this is a very informative post and should help with the sale.

Oct 13, 2008 08:34 AM #3
Rainmaker
720,587
Teri Eckholm
Boardman Realty - White Bear Lake, MN
REALTOR Serving Mpls/St Paul North & East Metro

Lynda--I don't know if she will actually list her home or not but I wanted to give her a realistic view of the market. Tough when nothing is selling and the houses and shoreline are eclectic.

I know there are several cities and towns in Minnesota, Iowa and Wisconsin named Clear Lake...I bet they have lakes to go with them. Using the MN Dept of Natural Resources Lake finder, there are 46 Clear Lakes in Minnesota alone. I guess with over 12,000 lakes in a state, we run out of names and have to use some over and over again! :)

Oct 14, 2008 01:32 AM #4
Rainmaker
720,587
Teri Eckholm
Boardman Realty - White Bear Lake, MN
REALTOR Serving Mpls/St Paul North & East Metro

Art--You are so funny...No tide but lots of waves crashing on the big lakes when things get choppy. When I go to the ocean, I try very hard to see the shore on the otherside rather than the horizon...that doesn't work but I try anyway. :) 

Oct 14, 2008 01:34 AM #5
Rainmaker
720,587
Teri Eckholm
Boardman Realty - White Bear Lake, MN
REALTOR Serving Mpls/St Paul North & East Metro

Fred--Hopefully it will help other homeowners struggling to understand the picture of what has happened in the lakeshore market around the Forest Lake area too. Thanks for your comments!

Oct 14, 2008 01:36 AM #6
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Rainmaker
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Teri Eckholm

REALTOR Serving Mpls/St Paul North & East Metro
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