It's All About Lakefront

For the past couple of months, it seems that almost everyone I talk with is looking for a lakefront house or property. I'd say that 90% of the calls or emails I'm getting lately about finding a second home are for lakefront property. (Sometimes a buyer will add river or pond to the option mix, but its still about water.) I have 3 deals in contract at the moment, and all are lakefront.

There is some "sampling bias" to what I'm seeing, in that I Google well for search terms like "Sullivan County lakefront" or "Catskills lakefront" — so I probably hear from a higher proportion of lakefront shoppers than many other agents. But that's no different than a year ago — I googled well for lakefront then, too, and only about a third of my business was lakefront.

Its been very interesting this summer to see what's been moving in lakefront property and what hasn't. Almost everything priced in the low to mid $300's on water has sold (with the exception of a couple of houses that are seasonal, not equipped for year round use.) In the upper $300's, pretty much everything with 3 bedrooms has sold, while the 2BR houses in that price range, or houses that need a lot of work, haven't. There's kind of a gap in the $400's, and then things pick up again between $500K and $650K. In that price range, though, buyers are gravitating to lakefront houses that involve few compromises. They want direct lakefront, a rustic setting, at least 3 bedrooms and a master bath.

Very surprising to me is that the some of the 5 houses listed for sale on Swinging Bridge haven't sold. The lake problems at Swinging Bridge are pretty much over, the lake is close to refilled and was reopened for recreational use at the end of July. 3 of the 5 listings there (2 smaller houses at $399K and one larger 3BR, 2 1/2 bath house at $599K) seem pretty well priced and are in good condition, but just haven't moved. Maybe the word isn't out that Swinging Bridge is back.

Comments

[Angel Rojas]

David,

Thank you for your very informative comments and unbiased analysis. I am a lakefront owner and would like your opinion on motorboat lake market in Sullivan County. Are the values for White, Swinging Bridge, Mohican and Highland lakes the same for similar size properties?

[champ]

http://www.nytimes.com/2007/09/05/nyregion/05cnd-catskills.html?_r=1&hp&oref=slogin

[Chris L]

David

Any idea when can we expect the monthly report?

[seymorpansick]

People who wish to live off of lakes in the area should be concerned about the "exotic" described below. In all liklihood the dam at Swan Lake will break within the next three years due to the yearly dieback of this exotic.
It's a travesty when an outside developer comes in with insufficant funds and then ignores his guardianship duties.
You will be reading more about this lake in the next two years. As I posted here last year: Swan Lake is an environmental time bomb.

http://www.sc-democrat.com/news/09September/07/chestnuts.htm

"Lake owner Tony Murolo of AJM Associates said he’s been hearing about it from Swan Lake residents.
But the developer doesn’t live here – he hasn’t been able to keep track of the water chestnut’s path."

[Diane L]

I am considering purchasing one of those Swinging Bridge homes that weren't selling over the past few months. This one isn't waterfront, but has a shared dock and seems a good value for the sq.footage and area (I have looked closely at all homes between $200K to $350K in a 20-mile radius). Should we be concerned about anything regarding the future of Swinging Bridge Reservoir? Do you think Alliance's seeking to lower their tax assessment will increase the residents' tax liabilities?