Lake Lanier, one of the largest and most visited Army Corp lakes, is seeing lake home sales significantly decrease.
The 4th of July weekend traditionally brings out large numbers of boaters and families taking advantage of all of the recreation that the lake offers. Unfortunately Lake Lanier will have its lowest water level ever for the 4th of July holiday. Most boat ramps are closed and swimming areas resemble a desert. Add gas prices on the lake averaging $5.00 per gallon and you have all of the ingredients for a disappointingly slow weekend.
As the Atlanta metropolitan area continues to grow many people looked to Lake Lanier for second homes as well as primary housing with commutable access to Atlanta. Prices rose much higher than the Atlanta area.
We are now in the second year of this down market. The Atlanta area has felt the effects but not on the level of other parts of the country.
Lake Lanier property has not seen the same pricing declines. However the number of houses sold has seen a dramatic change.
Jan 07-Jun 07 112 homes sold on Lake Lanier. Average price $643219
Jan 08-Jun 08 49 homes sold on Lake Lanier. Average price $642051.
As the level of the lake hit all time lows the real estate market has seen the effects.
Our observations:
Houses are marketed with boat slips. However there are no attached details on the water level under the dock
Sellers are forced to pull out their boat slips in order to find water. They are at their limits.
The second home market has seen a dramatic slowdown. Less buyers means a natural decrease in homes sold.
If your boat slip is not usable you are at a competitive disadvantage.
The lake does not seem poised for a recovery. The Atlanta area is in its second year of a drought. The lake water continues to be claimed by Georgia, Alabama, and Florida. The politics of the lake are not going to be resolved in the near future.
Our opinion:
If you live on the lake and do not need to sell sit tight. If you need to sell you need to be realistic about the external factors that effect your home. Remember the market dictates the price not your personal opinion.
We will see you out on the lake.
Randy and Barb
The Wells Team
The Norton Agency
