Like most other resort markets around the country the Deep Creek Lake and Garrett County Maryland real estate market for the year ending in 2007 can be summed up in the following sentence…..Total Number of Sales Down, Average Sold Price Up.
So the question then becomes - Was Deep Creek Lake a good real estate market in 2007 or not? The answer really depends on who you ask - if you already own property here your value went up again in 2007 so their answer would be that it’s still a very good market…if you ask someone who tried to sell their property last year you would probably get a mixed reaction - most still ended up selling for what they wanted but it certainly took a little longer to get there….if you ask any local Realtor they would probably tell you the market stinks - of course they would be saying that because less sales equaled less money in their pockets last year - or in simple terms, bad for us - not so bad for our current clients, still good for past clients.
Below is a snapshot of what occurred in our market in 2007;
No. of Homes Sold Avg. Sold Price
2006 2007 2006 2007
Deep Creek Lake 308 215 $537,498 $559,168
All of Garrett County 510 374 $396,499 $400,460
It’s important to note that the Deep Creek Lake numbers above include everything residential in nature - homes, town homes, condos, and a few fractional ownership sales we had. It also includes a wide variety of different locations and settings within the lake market - lakefront properties, lake access properties, lake view properties, Wisp Ski Resort properties, and properties that have no access to the lake but are just in the general vicinity. Those different types of properties can vary greatly in value.
The big question we get asked now - Is it a good time to buy at Deep Creek Lake?
For those of you thinking about buying we truly believe now is probably as good of a time as there is to seriously consider buying in this area. The fundamentals are still very much in place for future appreciation - but we probably won’t see the extremely high appreciation rates we saw earlier this decade. That’s for sure.
Why is it still a good time to buy? The main factor is inventory - if our inventory of lakefront and lake access homes remains low into the future - which it should because the entire lake is almost fully developed now - prices should continue up. There is no reason to believe our inventory will ever get that high on and around the lake - there are only a few parcels left that could possibly be developed. If you talk to anyone who has been around this market their entire life they would probably concur that prices have always gone up at Deep Creek Lake - ever since it’s inception in 1925. It’s very hard to go back in history and find a time that real estate values ever went down at Deep Creek Lake.
When will the number of sales start to go back up again? It’s hard to say really - the experts predict we won’t see a positive trend in the number sales until 2009 at the earliest. From what we’ve seen so far, 2008 is starting off a lot like 2007 did. We have our normal amount of potential buyers who want to buy a vacation home for personal use and have the means to do it - it seems we lost that group of people who were buying for speculation, quick flipping, and who might have been stretching themselves financially to make it happen. Those people seemed to have disappeared over the last year or so. The national media has made a lot people think that buying real estate is a bad thing to do right now - this situation won’t change until the perception shifts back to real estate being the “cool” or “in” thing to do again. But the smart buyers are the ones buying now - before things heat back up.
Some other interesting real estate happenings that occurred in our market in 2007 -
- A new record sold price for a lakefront home was set in 2007 - a new construction spec house in The Reserve at Holy Cross sold for $2,830,000.
- Two homes sold for over $2 Million in 2007 - in 2006 only one home sold for over $2 Million in this market.
- In 2007 there were 22 homes that sold for $1 Million or more - in 2006 there were 30 homes that sold for over $1 Million.