By: Mike Kennedy|
July 24th, 2009
Category: Deep Creek Lake Buyer Info, Deep Creek Lake Market Update, Deep Creek Lake Real Estate, Garrett County Real Estate, Wisp Real Estate
As we pass the mid point of 2009, the Deep Creek Lake and Garrett County real estate market continues to feel the impact of the national economy and global recession. Not because we have an abundance of short sales and foreclosures - because we really don’t - the biggest impact right now is the national media and the negative perception of real estate in general.
This perception continues to widen the gap between what buyers are willing to pay and what sellers are willing to accept for their properties in our market. This fact along with tightening credit standards has resulted in less sales - a trend that started about mid-way thru 2006 in our market.
Almost every buyer today wants a “good deal” or is waiting for the bottom - and who can blame them after listening to the national media? However, most of the current real estate listings in Garrett County could be characterized as being “non-distressed” - i.e. the owners would like to sell but they aren’t willing to dramatically take less than what they are asking for in price. There are some desperate sellers out there right now that need to sell - and they very well may have a property match for what you’re looking for. However, in general, this is not a market like Las Vegas, or in other parts of the country like Florida, where 50-75% of all current sales are distress sales.
Real Estate Market Snapshot - Deep Creek Lake
June 30 ,2008 June 30,2009
# $ Vol # $ Vol
Res 72 $44.4M 54 $27.4M
Lots 33 $6.3M 25 $5.7M
Comml 1 $0.5M 2 $0.7M
Clearly, the number of sales and transactions continues to decline. The only bright spot continues to be the average sold price. According our MLS, the average sold price for a residential property thru the first 6 months of 2009 in the Deep Creek area was $507,942. The average sold price at the end of 2008 was $583,230 - or a correction of about 13% - not bad considering most other areas of the country - primary home and resort areas - have seen corrections between 25-50% and have seen property values revert back to pre-boom days! In fact this is the first time the average residential sold price in the Deep Creek Lake area has recently declined - even in our softer real estate markets of 2007 and 2008.
However, please take these numbers with a grain of salt - this number includes a wide variety of different types of residential homes sold - from million dollar lakefront homes with a private boat docks - to less expensive lake access condos and town homes - to a modest cabin in the woods with no lake access. If more less expensive property types sell the average sold price will decline. This does not mean the value of a newer lakefront home with Type A dock went down 13%. It just means on average, the different properties that did sell, sold for 13% less than at the end of 2008.
What’s a Seller To Do?
Right now the best thing you can do is realistically price your property to sell based on the last comparable sold and make sure the condition of the property is in tip-top shape. Realistically priced properties in good condition are currently selling - unrealistically priced properties are not! By pricing your property correctly up front you can avoid all the small price reductions later which help keep the buyers on the sidelines waiting for the next price drop.
As a seller the value of your home is NOT based on what you paid for the house, NOT based on how much you have it insured for, NOT based on how much your neighbor’s house is currently sitting on the market for, and NOT based on how much you mortgage balance is - pure and simple your current value is based on what a ready, willing, and able buyer is willing to pay for it - and most buyers right now aren’t going to pay more than what the last comparable sold for.
What’s a Buyer to Do?
Quite simply now is a great time to buy!! A few communities and subdivisions in the lake area have seen values come down making some properties now within reach. Plus interest rates on second homes and investment properties are still low and their is an abundance of properties on the market right now. Now is a great time to negotiate an excellent deal. This situation along with low interest rates won’t last forever.
Overall the Deep Creek Lake real estate market has generally been a safe harbor to weather economic pressures like these throughout the years. Why? Owning property here is more than just a financial investment - it’s an investment in lifestyle as well. We have four seasons of recreation and activities - including Deep Creek Lake and the Wisp Ski Resort - we have a comfortable year round climate suitable for numerous outdoor activities - including boating, hiking, snow skiing, biking, fishing, golf, and the Garrett Lakes Arts Festival - just to name a few. Along with our close proximity to Pittsburgh, Baltimore, and Washinton D.C. - Garrett County is a great area to reconnect with friends, family, and loved ones. All markets go up and down - this opportunity may not last very long - give us a call or shoot us an e-mail - we’ll help you seize the opportunity and buy a property today!