Edina, Minn. - May 22, 2014 – It’s nearly summer in a seller’s market, and waterfront properties will be increasing in demand, according to Edina Realty experts. Competition for desirable waterfront homes will be significant and multiple offers may be common, since housing inventory is down and prices are starting to rise, creating a sense of urgency for anyone wanting a waterfront property.
New construction is rebounding in the current market, in part because the inventory of homes for sale is at a 10-year low. The Minneapolis Area Association of REALTORS® reports that closed sales of new construction in the greater Twin Cities area was up nearly 30 percent last year, and it’s on track for further growth this year.
"Sellers have the edge in this market, and particularly those who own a waterfront property with good elevation and desirable beachfront," said Barb Jandric, president of Edina Realty. "It’s the ideal year and the perfect season to sell because buyers are out there looking for properties and they’re finding a shortage of homes to choose from."
Jandric said it’s a great time for buyers to fulfill their dreams of owning a waterfront property. "We’re long past the runaway price game," she said. "The housing affordability index is much better than it was several years ago. A million dollar property is now closer to $600,000 today, and you can even find a lakefront home in Minnesota in the $200,000 range," she said.
After the typical lull during the winter, sales in waterfront properties are starting to rise. Closed sales of private waterfront properties in the greater metro area in April were up 10.4 percent from the previous month, according to the Minneapolis Area Association of REALTORS® (MAAR), and the season is just getting underway.
Vacation home sales in Minnesota are reflecting what’s happening nationally. The 2014 Investment and Vacation Home Buyers Survey, released in April by the National Association of REALTORS® (NAR), shows vacation home sales jumped 29.7 percent from last year. Vacation home sales accounted for 13 percent of all transactions, their highest market share since the peak in 2006.
Edina Realty is the sales leader on many popular Twin Cities area lakes, including White Bear Lake, Prior Lake and Medicine Lake. But in the land of 10,000 lakes, there are many small and mid-sized lakes that offer everything someone would want in a lakeshore home, Jandric said.
Without the help of a REALTOR®, finding a lakeshore home will be a challenge, she said. MAAR reports that the inventory of private waterfront homes is down over 37 percent from the year before reflecting the meager inventory in the overall housing market. The lack of supply is also driving prices upwards.
"Buyers will be challenged in this market, because inventory is so low," Jandric said. "My advice is not to be surprised by a multiple offer situation. In that case, it’s important to move quickly and put in a very competitive offer. Your REALTOR® can help you figure out how much to offer and what other strategies could help you win the bid, and help you negotiate the entire transaction."
Edina Realty features a "Lakeshore & Outdoors" section on its website, where consumers can view every waterfront property that’s listed with the MLS®. Currently, there are over 9,000 waterfront properties for sale in the entire region, ranging from a $25,000 hunting shack northwest of Faribault to a seven bedroom mansion on Lake Minnetonka offered at $24 million.
Consumers can search for lakeshore properties by lake name and can view all available MLS® listings on any type of waterfront, including lakes, rivers, creeks, ponds and channels as well as properties with a water view. The section also includes a list of five important questions for anyone considering buying a waterfront property, such as "Does the water level fluctuate?"
For more information on buying a waterfront property, the current housing market, or to contact an experienced Edina Realty REALTOR® for a free home value estimate, call Edina Realty Customer Care at 952-928-5563 or visit www.edinarealty.com.
Edina Realty is a Berkshire Hathaway affiliate and a wholly-owned subsidiary of HomeServices of America, Inc. It is one of the nation’s largest real estate companies with approximately 60 real estate offices and 2,300 REALTORS® throughout Minnesota and western Wisconsin. Edina Realty's family of companies includes Edina Realty, Edina Realty Title, and Edina Realty mortgage. Edina Realty closed nearly 29,000 real estate transactions and more than $6.9 billion in sales volume in 2014. For more information, visit www.edinarealty.com or find us on Facebook: facebook.com/EdinaRealty; and Twitter: twitter.com/Edina_Realty