By: Mike Kennedy July 8th, 2008 Category: Deep Creek Lake Market Update, Wisp Real Estate

At the mid-point of 2008, once again the Deep Creek Lake Maryland real estate market is sending out mixed signals. However, the message is mostly the same - the number of sales continues to trend downward but the average sold price continues to climb. 

Residential Market Segment

Thru the first 6 months of 2008, 72 residential properties sold in the Deep Creek Lake area - this includes lakefront, lake access, lake view, and lake area residential houses and town homes/condos sold. These figures also include residential real estate at Wisp Ski Resort. This compares to 103 residential sales that occurred thru the first 6 months of 2007 - which is a decline of 31 properties sold.

On the bright side, the average sold price thru the first 6 months of 2008 for these 72 residential properties was $616,428 - this compares to an average sold price of $540,390 in 2007 at this point. On a wider level, Garrett County is one of only 3 counties in the entire state of Maryland where residential real estate values went up thus far in 2008. Other counties in the state are experiencing both decreases in the number of sales and prices upwards of 25-40%.

Lakefront Homes Still Going Strong

Clearly, the driver of the Deep Creek Lake market is once again the lakefront home segment. This segment clearly continues to outperform our other market segments. The values of many lakefront homes continue climb - albeit at a much more normalized rate than what we experienced earlier this decade. Even during what most consider a soft real estate market, the lakefront homes with good settings and quality features can still command a premium price. Interestingly enough, from a historical perspective the lakefront segment has always performed well. Many old time real estate professionals from the area will tell you that the lakefront homes have always held their value or even went up during other tough national economic times experienced in past - such as those in the 1970s and 1980s.

Lots and Land

The most disappointing segment of our current market continues to be the lot/land market. Only 33 lots in the Deep Creek Lake area have sold thru the first 6 months of 2008. This compares to 53 lots sold thru the first 6 months of 2007 - a decrease of 20 lots sold. The average sold price of a lake area lot is $191,226 thus far in 2008, which compares to $238,577 at this point in 2007. This is primarily due to an incredibly high inventory of lots for sale and decreased demand for these types of properties.

Impact on Buyers

If you are a potential buyer - now may be a good time to explore purchasing opportunities in this current market. With less buyers and demand in the overall market, your chances of obtaining more favorable terms (i.e. price) are greater than in the recent past. Plus the cost of borrowing money is still relatively low by historical standards. There are some pretty good “buys” out their right now.

Impact on Sellers

If you are a seller in this current market it all depends on your situation - if you are trying to sell a good, quality lakefront home with a good setting you’ll probably end up getting your offering price - assuming it’s priced correctly. If your setting or house is marginal you may need to further examine your current pricing strategy - or put some resources into boosting the “curb appeal” of your house. If you are trying to sell a lot - it will be tough for sure unless it’s priced at a very attractive level. It all depends though - we just sold a very unique lakefront building lot on Stockslager Road for $1,200,000. There are real estate buyers out their right now and they are willing to pay for quality- however most are now waiting to purchase until they find that exact house or lot they have been seeking out.

¼/p>

By: Mike Kennedy May 29th, 2008 Category: Garrett County News

After nearly 3 years of being under contract, the real estate developer who builds most of the Lowe’s Home Improvement Centers has finally closed on 23 acres of real estate just north of Oakland, Maryland on Route 219. Building crews have already started preparing the site for excavation and completion of the Lowe’s store is expected by Thanksgiving 2008. The 23 acres will also include 6 out parcels in front of the store along Rt. 219 whose use and occupants have yet to be determined.

It will be interesting to see what the eventual impact Lowe’s will have on Garrett County, Maryland as a whole and other related industries in this county such as real estate. With more competition  - will the cost to build a new home in Garrett County or at Deep Creek Lake go down any? Lowe’s will almost certainly put price pressure on the other suppliers of building materials in the area.

Will Lowe’s cause any existing businesses to eventually shut down? Maybe - but probably not. When Walmart moved to Garrett County earlier this decade the only big name company to go out of business was the local Food Lion grocery store. However, like Wal-mart - Lowe’s will probably cause sales to slow down or even decrease at some local businesses who sell the same products.

Many had predicted that Lowe’s would eventually land here in Garrett County as they tend to follow Wal-mart. Many citizens of the county were concerned before Wal-mart moved here and rightly so - this area had never experienced life with a big box retailer. The Wal-mart effect on Garrett County has been both good and bad - but mostly good. Bad in a way that it has certainly hurt some local family owned businesses - but good in a way that Wal-mart is now one of the area’s largest employers providing steady jobs with benefits to an area that certainly needs it - and also providing lower prices to local citizens. Overall most would say Wal-mart has had a positive impact - hopefully in the long run Lowe’s will be another asset to the county.