Quarter 1, 2022 for the Finger Lakes Region
The lakefront real estate market continues to thrive as a seller’s market. But there is hope for those looking to purchase their slice of shoreline in the Finger Lakes.
First Quarter Trends
The first quarter, even in pre-pandemic years, is always slow with lakefront sales. In fact, in 2019 there were only 30 total sales compared to the 34 deals made this year.
The major market changes, however, are evident when you look at the average sale price and days on the market. Across the Finger Lakes, waterfront properties are selling for 30% more than they did just one year ago. We are still seeing an influx of cash buyers with competitive offers driving those final sale prices up. However, we’re also seeing more homeowners of higher valued properties cash in on their estates while the market is in their favor.
Effects of Delayed Negotiations
Delayed negotiations, which typically last about a week, have become the norm both on and off the lakes. If it weren’t for these delayed negotiations, bets are the Average Days on the Market would be significantly less than 30 days.
The delayed negotiations have benefits for both the buyers and sellers. For those searching for a home, the race to be the first at the table is gone. However, for those selling, it allows them to gather and choose these best offers in terms of price, contingencies, inspections and so on. Buyers need to be ready to bring their highest and best offers for any consideration.
Spring Spike in Listings
On the flip side, with a recent spike in listings through April, we are just beginning to see prices plateau. However, it will likely take a few years for prices to be comparable to the pre-pandemic market. Sellers are still able to list higher than average, but for a successful sale they need to be somewhat reasonable with value of the home. As we’ve mentioned in previous market reports, lakefront home buyers are typically more patient and savvy shoppers. Homes that are well beyond a reasonable asking price are becoming riskier. With more homes coming on the market buyers are more willing to wait for the right home at the right price.
Increase in Investor Buyers
As the region’s leading property management company for lakefront vacation rentals, we continue to assist buyers with locating the ideal investment property and supporting services. Since the pandemic, vacation rentals have surpassed traditional hotel accommodations in demand, with the Finger Lakes Region increasingly being a destination market. Understanding renter demand and reasonable rental rates for a specific property are crucial to securing the right home for long-term return on investment.
Outlook for 2022
The outlook for both lakefront buyers and sellers are promising for this year. In April alone we saw a major jump in listing activity with 22 new listings. We project the competition will continue to be heated to secure a lakefront home for buyers through the summer. There will likely be an increase in listing activity in early summer and fall. Current lakefront homeowners will want to list while demand is still high along with the returns they will receive.
For more information about real estate market trends for waterfront properties in the Finger Lakes, reach out to our local sales team. With nearly 30 years of experience and over 90% of our sales dedicated to lakefront homes, we have the proven process for helping you achieve your real estate goals this year.