Report: Michigan No. 7 for Lakefront Home Listings, Strong Market Overall

As the U.S. housing market contends with an unofficial recession and the impact of the NAR (National Association of Realtors) commission lawsuit settlement, the lake real estate market is showing resilience, according to a new report by Lake Homes Realty.

The settlement, which took effect on August 17th, significantly alters how real estate agents conduct transactions across the country. Despite these sweeping changes and challenging market conditions, the lake real estate market is strong, with a slight uptick anticipated for the remainder of 2024.

This fall offers a broader selection of properties. The Fall 2024 Lake Real Estate Market Report by Lake Homes Realty indicates there are now 104,503 lake home and lot listings, an increase of 14,961 from the 89,542 listings available in fall 2023.

In Michigan, the report shows:

• Total Market for lake homes and lots – $3,112,331,141 – a 22 percent % increase from Fall 2023 ($2,545,912,898)
• Total number of listings – 4,692. Up from 4,021 last fall.
• Largest Home Market – Lake Michigan
• Largest Land Market – Lake Michigan
• Most Expensive Homes – Lake Michigan – Petoskey Area – $2,696,395 average
• Michigan has 609 homes listed for more than $1 million
• 51 percent of lake home searchers are 45 to 64. 53 percent are male.
• The top searching cities outside of Michigan are New York, followed by Dallas and Chicago

Overall, in the U.S. total market value of these listings now stands at $59.42 billion, highlighting a strengthening market with significant investment potential. This marks a positive shift from the $49.85 billion reported in Fall 2023.

The broader housing market may be weathering a storm, however, Glenn S. Phillips sees lake real estate as a sturdy lighthouse, standing strong against the turbulent waters. As CEO and chief economic analyst for Lake Homes Realty, Phillips expects, “lake real estate and other discretionary housing to break out of this lull faster than most primary residential markets.”

With mortgage interest rates expected to drop this fall, Phillips frequently hears the question: Will this lead to more real estate deals? His surprising reply: “No, not for lake homes.” What makes him so sure of this? Well, he points out lake home buyers often pay cash with more than 50 percent of Lake Homes Realty’s transactions nationwide not involving a mortgage.

In addition, “buyers who can afford these properties and desire a mortgage can often get the best rates anyway.”

Looking ahead, the remaining months of 2024 will witness a modest uptick in lake property sales. Phillips attributes the modesty of this increase to several factors, such as anticipation of election results, fewer real estate contracts written from the week of Thanksgiving through the end of the year, and that the turn to more appropriate list prices has only just begun.

In contrast, a more significant increase of at least 15% is anticipated in 2025 for year-over-year transactions. Phillips notes, “More owners are ready to sell, and they are becoming more realistic instead of ‘overly aspirational’ in their pricing. In other words, they will be more serious about actually selling instead of dreaming (falsely) of a big profit.”

Finally, Phillips attributes this expected increase in lake properties for sale to what he refers to as the, “many D’s”, including “death, divorce, debt, dreams, and distraction (on to a new lifestyle), disability and dementia (aging homeowners no longer suited for lake activities), downsizing, distance (tired of the drive to this second home), and diamonds (a new marriage may call for a different home).”

After years of anticipation, all the necessary factors seem to be converging, prompting many lake homeowners to finally abandon their hesitation and sell.

Data from LakeHomes.com suggests a potential shift toward a more balanced “softer” seller’s market for lake properties. The number of listings is steadily increasing, but more interestingly, average list prices have dipped for the first time in months.

If these trends hold, the market will be conducive to more transactions. It’s too early to say for sure — two more months of data will reveal if this is a temporary fluctuation or a longer-term trend signifying increased market activity.

Just like in previous years, overpriced properties remain a hurdle, regardless of marketing efforts. MLS listings and websites like LakeHomes.com ensure broad exposure to buyers.

So, a lack of offers doesn’t stem from a lack of visibility. Savvy buyers simply won’t waste time on properties that aren’t priced competitively or within negotiation range. They’ll wait for a better deal, potentially for years.

Top 10 States for Lake Property Listings

1. Texas – 19,970
2. Florida – 11,212
3. Tennessee – 7,070
4. Minnesota – 5,605
5. North Carolina – 5,443
6. Georgia – 5,044
7. Michigan – 4,692
8. Missouri – 4,423
9. Alabama – 4,416
10. Arkansas – 4,164

Copies of the Fall 2024 Lake Real Estate Market Report are now available to download for free at www.lakehomes.com/report .

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