Dive into the 2022 Finger Lakes Lakefront Real Estate Report Review!
Supply and demand of the economy is still far from what we experienced a few years ago and the housing market continues to feel its impact. Last year saw the lowest number of homes sold in the past several years. Interest rates doubled from January to May and peaked at over 7%.
Overall, the increase in average sales price from 2022 compared to 2021 shows we are still in a seller’s market. Average days on market continued to decline in 2022 as a result of the lower inventory. That being said, the number of lakefront homes sold in 2022 declined versus 2021. Total sales volume averages can sometimes be difficult to compare as lake homes are individually unique and have a wide range of value which can skew year over year comparisons.
Although we experienced a minor slow-down in Seller’s use of delayed negotiations in November/December, January 2023 has seen this strategy returning on many new listings. We also continue to see consistency in new open houses, allowing more buyers the opportunity to get into the home before a deal has been made. Depending on the home, these strategies have to be carefully weighed. But one thing is certain, lakefront buyers continue to be patient and savvy shoppers and price, location and condition still are the three main factors of buying and selling.
Typical Market Trends Resume in Q1 of 2023
We’re not seeing a large influx of new lakefront listings in the Finger Lakes. This suggests we’re returning back to the seasonal norms we typically see in the first quarter. But it is still a sellers’ market. Prices are driven by supply and demand, and we still have a low supply of lake homes on the market across Finger Lakes Region. This means continued upward pressure on home prices.
And for the naysayers who are calling for a housing crisis, this quote from Taylor Marr, Deputy Chief Economist at Redfin sums it up best, “For those bearish folks eagerly awaiting the home price crash, you’ll have to keep waiting. As much as demand is pulling back, supply is as well. And that’s reducing downward pressure on prices in the short run.”
Our advice for anyone considering selling their lake home, do it now. Lakefront buyers have been patient, and there are many. Listing your home before the spring market gives you the competitive advantage of reduced competition, optimal exposure, and the ability to leverage.
Looking at the latest home price forecasts for 2023 we see this: some experts are projecting slight appreciation, and others are calling for slight depreciation. When we average these together, we see relatively neutral or flat home price appreciation for 2023.
For the Investment Buyers…
Without a doubt the Finger Lakes Region continues to surge as a tourist destination. The pandemic brought new visitors to the area who instantly fell in love with the cascading hills along the blue lakes, award-winning wine country, and the quaint lakeside towns that offer more to discover with each visit. With the influx of visitors also came heightened demand for purchasing a lake home either as their own family retreat or as an opportunity to jump on the short-term rental bandwagon.
Some may have heard the term “Airbnbust.” Nationally and locally, we have seen the supply of short-term rentals increase. While they continue to be a great alternative as an investment option, the saturation of the market and plateau of guest demand has elongated the return on their purchase. These trends combined with increased regulations from local townships has added the necessity for investment buyers to do their research on the best areas and best practices for managing a vacation rental. For more information on owning a short-term rental in the Finger Lakes, check out the Finger Lakes Vacation Rental Alliance (FLXVRA) website.
In the Meantime..
While interest rates have been a hot-topic across the real estate industry, it actually has had less of an effect on our lakefront market versus other markets to date. Lakefront buyers will continue to purchase homes in 2023 and many of these buyers of Finger Lakes waterfront homes will not be dependent on mortgage rates for purchasing.
The Finger Lakes area is still a very desirable destination to live, work and play. We continue to experience good activity with both sellers and buyers. Tourism is gaining more momentum with the pandemic in the rear-view mirror. The Finger Lakes Region, with its natural beauty and all local destinations draw people from all over to stay short-term and long term and we anticipate this to continue throughout 2023.
For more information about buying or selling a lake home in the Finger Lakes, or to speak to our lakefront real estate team, contact us today at 888-599-4810 or reach us at sales@flpplake.com.
