Lake properties going fast!

Up north here they sure are. We had one less than a mile down the road from us that didn’t last 24 hours and it was sold over the asking price. Friend of mine has been looking for the last month and by the time he hears of them and goes to look they have multiple offers pending. He finally landed one the other day. not exactly what he wanted or on a more desireable lake like he wanted but he took it hoping they can flip it at some point and find more of what he’s looking for. And there are many I hear about that are being sold without ever hitting the market. It’s a sellers market right now.

Don’t know if this is a exodus from the cities or locals making moves but if you want a place up north on a lake it’s a hot commodity right now.

From what I hear it is like that everywhere. Buddy just sold one in Minneapolis, 30 offers in 3 days.

Tell me about it. I’m looking at Leech or Western WI. Exactly like what happened to your friend, it’s what’s keeping me from buying. I am NOT going to settle on something that is not what I want. I was actually somewhat optimistic when everything started falling apart in the world thinking maybe some good deals to be had but the exact opposite is true.

I just can’t pull the trigger on lake property without doing research…and that’s the hurdle I face.

All property is that way right now. I know of a few looking for home. Often as soon as one becomes available they go to look at it and by the time they get there, There is a sold sign on the home. Its crazy how fast homes are selling these days. Most of them for over asking price as well.

People can take out up to $100k of their 401k or IRA plans without penalty this year. Not a great move IMO, but a lot of people are doing it to buy property. Also seeing people take the cash and gambling on short term gains in the stock market, among other investment options.

-J.

ClownColor wrote:

Tell me about it. I’m looking at Leech or Western WI. Exactly like what happened to your friend, it’s what’s keeping me from buying. I am NOT going to settle on something that is not what I want. I was actually somewhat optimistic when everything started falling apart in the world thinking maybe some good deals to be had but the exact opposite is true.

I just can’t pull the trigger on lake property without doing research…and that’s the hurdle I face.

I think my buddy kind of panicked. It’s totally unlike him to move on something with that much money involved so quickly but I think he felt he just needed to get his foot in the door. My wife and I commented the other day how lucky we were to find our place last year and were able to buy before all this craziness hit. I could flip my place right now at a attractive profit after being there for only a year.

North Shore property and home sites are hot right now. We just got home and there are several new sites being worked that were not there three weeks ago. The locals up there are really disliking all the traffic.

The housing market is crazy all over right now!

BigWerm wrote:

The housing market is crazy all over right now!

Have a younger gal I work with. (Approx age 30) Been trying to buy a house for a couple years now. Everything kept getting sold or bid up. She just signed a deal to by a house – asking $299,900. Had to bid it up to $330k. Just tied of looking plus the house was immaculate condition in a great location. On the market one day.

-J.

i peak around once in a while at the housing market. mostly for fun as i don’t plan on moving for a long time. Not much of anything out there! Sellers market for sure

a lot of it has to do with the popularity of Airbnb and VRBO. Theres tons of companies that hold 100s of cabins to rent out. I cant remember the thread but there was one about counties taxing cabins that are primarily renting them out commercially which would be a huge increase. if it becomes true I would think a lot of those people/businesses holding those will try to sell. Hopefully bring the supply way up and prices down. Only time will tell though!

Jon Jordan wrote:

<div class=”d4p-bbt-quote-title”>BigWerm wrote:</div>
The housing market is crazy all over right now!

Have a younger gal I work with. (Approx age 30) Been trying to buy a house for a couple years now. Everything kept getting sold or bid up. She just signed a deal to by a house – asking $299,900. Had to bid it up to $330k. Just tied of looking plus the house was immaculate condition in a great location. On the market one day.

-J.

My son is in the same situation. Looking to buy his first house, has made several offers but everything turns in to an auction. The last home was the identical scenario to what you referenced, $299k asking and he bid $330k and did not get the house. In fact, the sellers realtor told him he “wasn’t that close”. Available housing stock is down 25% year over year, it is definitely a sellers’ market. I hope he doesn’t get one soon, he could well be underwater in a year’s time.

As far as lake property goes it’s almost impossible to lose money. They aren’t making anymore of it.

I signed with a realtor a couple of weeks ago. I told her not to put it out there yet as I have some lose ends to get tied up first. They are telling me the offers will come piling in as soon as it hits MLS. We will see.

Be interesting to see what 6.7 acres in Princeton is worth.

Yeah, when it seems like we are in for at least a couple years of sticking close to home, suddenly cabin life seems like the best option.

I have held off because I like going to different resorts for variety. But my problem with resorts is that for most of the summer anyway, you are stuck with week rentals. The allure of a cabin to me is that you can run up for the weekend if you want, and make a last minute decision to do so.

I am getting closer to going the cabin route.

As I read through this thread I was going to quote a few posters but it ended up that almost everyone said some variation of the same, accurate thing: it’s a seller’s market and things are going fast. I bought a house in the country last fall and my old house in a small town sold pretty quick. I have a buddy who has a small house in a not-that-special part of Rochester that sold within a day a month ago, and another couple we know that got above asking price after one day in a bland part of Rochester.

My home selling/buying experience in 2019 was so drastically different than when I bought a house in 2008/2009 during the recession.

Maybe a dumb question, but what’s causing this housing market like this? After the 2008 recession loans and credit were supposed to have gotten more restrictive, so something quantifiable must’ve changed.

Dan wrote:

Maybe a dumb question, but what’s causing this housing market like this?

Is it the super low interest rates? I don’t know how its different from the last economic downfall though.

The sellers market is not new this year but perhaps just gaining more and more steam. As someone who bought my first house a few years ago and have several friends in the same boat for the last 5 years or so, any reasonable house in the first time home buyers price range has been selling like crazy for the last few years. Numerous offers above asking price the first day on the market and bidding wars. The house I bought had 15+ showings and 5 offers the first day. I won the bidding at $7k over asking. This was after 6 months of actively looking and dropping everything to go to a showing when a house I was interested in came on the market. Granted it’s not lake property, but it was very much a sellers market 5 years ago when I first started looking.

My realtor explained the hot market was a combination of very low interest rates and the fact millennials and boomers were often competing for the same housing stock. Millennials as first time home buyers and boomers who were downsizing into smaller homes who could pay with cash. Whether or not that’s true, I’m not sure but made sense to me.

Yep. That’s how it is all over. My B.I.L. and his fiance are looking for a house and it’s been exactly how everyone is describing it here for them too. I can say if you’re buying right now you can expect to pay over the asking price.

Bought a place up at LOTW in February and glad I did. We are in a resort and places are coming up for sale and only last a few days. People are ready to spend money that’s for sure

Youbetcha wrote:

a lot of it has to do with the popularity of Airbnb and VRBO. Theres tons of companies that hold 100s of cabins to rent out.

I can second this. Even private businessmen are doing it around resort areas. I know one guy with four lakeside AirBNB rental houses that makes good income doing it. He hangs drywall and does odd jobs on the side. He’s now looking to expand. His places are reasonably priced too. $150/night for a nice 3-bedroom house on Green Bay, for example. They sell like hotcakes. Not a bad racket.

I’ve made offers on multiple houses in the last few months with all those at or above the asking price. I havent bought a place yet to say the least

Bearcat89 wrote:

I’ve made offers on multiple houses in the last few months with all those at or above the asking price. I havent bought a place yet to say the least

You know where i live.
Come & get it.

Dutchboy wrote:

<div class=”d4p-bbt-quote-title”>Bearcat89 wrote:</div>
I’ve made offers on multiple houses in the last few months with all those at or above the asking price. I havent bought a place yet to say the least

You know where i live.
Come & get it.

If your looking for a great house over looking pool 5a on the Mississippi river, we have our house for sale as well. Currently not listed with a relator. We just closed on our new property yesterday.

Current house for sale is 2/10ths of a mile to the best public boat landing on pool 5a. The boat landing is viewable from our house.

You know where i live.
Come & get it.
[/quote]

Your house is beautiful and in a great location.
I just have a strange feeling it may be a little more then I am trying to spend. But it does have everything I am looking for, its even close to a nice little walleye spot for shore fishing.

I think it’s been a sellers market for a while. We bought our place little more than three years ago & put in 4 other offers on properties only to be “out-bid”. We still ended up paying $6,000 more than asking price to get the one we wanted. I’m glad I have no intentions on moving anytime soon.

If your looking for a great house over looking pool 5a on the Mississippi river, we have our house for sale as well. Currently not listed with a relator. We just closed on our new property yesterday.

Current house for sale is 2/10ths of a mile to the best public boat landing on pool 5a. The boat landing is viewable from our house.
[/quote]

That sounds like a awesome set up and something I would love but im from north of the cities and plan to keep it north. Actually trying to creep up further north

We’ve started looking for a new home, and found one that checked all the boxes near the top of our price range. We offered asking with all the stipulations they wanted (quick close etc.) and we were the worst of 5 offers they got on day 1. Ended up selling for $35k over asking. Thankfully we are in no hurry, so no big deal although selling our current home and converting that equity in this market is pretty attractive.

The housing market is crazy because rates are low, the number of buyers built up a huge backlog during the 2007 recession, and people have the money right now. Even people who were first time homebuyers in the early 2010’s are impacting the market significantly as they move from starter homes to forever homes.

I’ve got a house in Big Lake area for sale. FSBO 2.5ac split entry. And I’d be interested in selling a lake lot in Bagley . Not interest in dealing with realtors. Let’s both win on the deal.

If anyone is looking….my place is hitting the market in a week or two in Eagan!!! Plan to list for 389,900, 4 bedroom, 2 1/2 bath, great location next to high school/jr high, 2200 above ground sq ft and finished basement too. We are only building new a few miles away from here!!

BigWerm wrote:

The housing market is crazy all over right now!

Covid has led to a severe lack of inventory. People don’t want strangers coming through their homes.
Be pre-approved and ready to act quickly with a solid offer. Writing non contingent on an inspection etc.