Hot Market ... Will Waterfront Values Drop?

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Originally Posted by Biggd

Property in the lakes region always slows this time of year and this year has seen a big run up in prices. I think people are just throwing properties out there right now to see if people will bite.
Prices are absolutely over inflated but from what I've seen, people are flush with cash and many sales are going through with cash offers so I don't see foreclosures being an issue.
It will be an interesting spring market. I'm just happy I can sit back and watch.
I think the only thing that will negatively affect the real estate market would be a recession.

Exactly.

House just went up next to me that was delisted for legal reasons and just relisted. It was listed for $1.25 million. They had 14 viewings the first day the first time around. I suspect it would have sold for $1.35 million -ish. We’ll see what happens this time. I saw several drive by yesterday.

It’s a decent property.

One house up in Hebron 3 season cottage. With HOLDING TANK. No way to have septic. Listed for $2.0 million. Way way over priced. They sold it for $1.7 million. That was like 4 weeks ago. It’s a very nice location with water on 3 sides and good sun exposure.

Prices might be lower because people are asking for way more.

I use % of town appraisal vs actual sold price as a gauge. Lots of stuff has consistently SOLD (not asking) for around 60% over appraisal. I use 2019 appraisals because some towns have recently applied the “COVID” markup.