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RECREATIONAL
2015 Property Report
Minnesota Wisconsin Indiana
Minnesota
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Park Rapids Lakes Region
Galen Johnson
RE/MAX FIRST CHOICE REALTY
P: (218) 732-1191
E: [email protected]
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Alexandria Lakes Region
Paula Jackson
RE/MAX LAKES AREA REALTY
P: (320) 762-5544
E: [email protected]
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Headwaters Region
Al Snider
RE/MAX OF BEMIDJI
P: (218) 751-3753
E: [email protected]
PARK RAPIDS LAKES REGION
“
…with the typical starting price for a cabin
home falling somewhere near $250,000,
area properties are appealing to the younger,
second-home buying demographic.
”
the vast amount of lakes that
residents can enjoy, though
country homes are seeing plenty
of action in the housing market
as well. Local agents report that
with the overall affordability,
especially for non-waterfront
homes, they’re seeing an increase in cabin sales of landlocked properties. One of the
most expensive properties in
the area sold this year hit the
$885,000 mark. It was a 6,108
square foot home sitting on 1.37
The Park Rapids region is home
acres, with 5 bedrooms and 3
to more than 400 lakes making
baths on 151 feet of shoreline loit a recreational hot spot. And
while the area is generally known cated on one of the most popular lakes.
for its summer attractions, it’s
really standing out as an ideal
Despite the change in the age of
winter recreational market to
this new, younger generation
recent homebuyers, some things
of homeowners. Recent homeremain the same. Most homeowners use their properties as
buyers are interested in second
properties that can be used year recreational second homes and
round for winter activities such
continue to travel from places
as ice fishing, snowmobiling, and between three and five hours
away — making the trek from big
hunting.
city hubs such as Minneapolis
The most in-demand properties
and St. Cloud to the great outin the Park Rapids area continue doors.
to be lakeshore homes due to
The lakes area surrounding Park
Rapids is noticing a change in
its real estate market as a recent surge of young buyers have
made their mark on the region.
Local real estate agents say with
the typical starting price for a
cabin home falling somewhere
near $250,000, area properties
are appealing to the younger,
second-home buying demographic.
ALEXANDRIA LAKES REGION
Lakeshore homes across the Alexandria Lakes region are making a big splash in today’s housing market. Real estate agents
throughout the lakes region have
been busy with an increase in
the number of lakeshore homes
being sold this year; an increase
of more than 10% for some brokerages when compared to last
year. This is due in no small part
to the more than 300 lakes and
thousands of miles in shoreline.
The recent increase in pending sales can be attributed to
the recovering economy and
more thoughtful buyers. Wantto-be homeowners are looking
throughout the region for properties that can offer lakeshore
actives such as swimming, skiing
and fishing coupled with all the
community opportunities local
municipalities have to offer. But
more and more homeowners are
considering how second properties can be utilized during every
season and are only making an
offer when they see year-round
possibilities.
ing it a hot spot for the recently
retired snowbirds and young
executives.
Buyers who are serious about
purchasing a lake home should
look now. Inventory levels are
currently steady, but sales are
pending and the most desirable
types of properties are selling
quickly. Buyers who have pentup interest in lakeshore homes
are finally making their move and
with the slight increase in interest rates, the lake home market
is being pushed.
While most buyers are coming
in from the Twin Cities area, it’s
becoming more common that
homebuyers are coming from a
wider radius of places including
North Dakota and southern Minnesota.
Alexandria specifically is providing homeowners a local hub for
live theater, concerts, festivals
and sporting events, drawing
upwards of 15,000 people to
various events each year. Adding
to the Alexandria Lakes region’s
Buyers in the area are willing to
allure is the myriad of winterspend to get the homes, views,
time activities. Downhill skiing,
and amenities they desire. This
snowboarding, ice fishing and
year, three homes in the area
snowmobiling are just a few of
have sold for over a million dolthe winter experiences that area
lars, with one specific home sitresidents enjoy and is a large
ting on 1.89 acres on 300 feet of draw for those hoping to purshoreline. However, the current
chase a recreational home that
starting price for a lake home is
can be used for more than just
around the $325,000 mark, mak- one season.
“
...sales are pending and the most desirable types
of properties are selling quickly.
”
HEADWATERS REGION
“
Current buyers are willing to spend a bit
more money on a home in good condition
that doesn’t require any work…
The Headwaters region of Minnesota is known for its waterways
but according to local real estate
agents, it’s land lovers who are
showing recent interest. While
the area sees a wide range of
buyers in terms of demographics, it has experienced a recent
influx of farmers from western
Minnesota.
Additionally, many people who
have been moving towards the
Headwaters region are typically
of an older generation, five to 15
years from retirement. They are
looking for a recreational home
that can double as a permanent
residence so they can eventually
retire in the homes they purchase.
With peak purchasing seasons
for the area generally being
between the months of April and
July, agents say properties have
been hitting the market like the
weather, hot and heavy. Homes
that are seeing the most activity and sales rates are move-in
ready. Current buyers are willing
to spend a bit more money on
a home in good condition that
doesn’t require any work — these
types of homes typically sell
in the $500,000 to $600,000
range.
A more typical starting price for
”
homes located on the water is
$200,000 to $250,000; however, consumers should not be surprised if they see lots alone going for prices near or above the
$200,000 mark. Once properties
move off of the water and into
the more rural wooded areas of
the Headwaters region, prices
tend to fall in the $150,000 price
range.
Boasting more than 400 lakes,
more than 440,000 acres of
forest and more than 100,000
residents populating the region,
the Headwaters area is both a
vacation destination and a great
place to call home. For as many
second-homeowners as there
are, many in the Lake Bemidji
area are looking to settle down
in a community that has much to
offer.
While the area is well known for
its summer water activities like
swimming, boating and fishing,
residents in the area don’t shy
away from the cold; the area
offers both downhill and cross
country skiing. And as the selfproclaimed “Curling Capital of
the World” Bemidji stands out as
both a summer and winter destination where people choose to
live year-round.
Wisconsin
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Cumberland Area
Matt Weber
RE/MAX ISLAND CITY
P: (715) 671-0200
E: [email protected]
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Greater Northwoods Area
Julie Winter-Paez
RE/MAX PROPERTY PROS
P: 715-480-4333
E: [email protected]
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Door County Area
Robb Carr
RE/MAX ISLAND HOMES
P: (920) 847-2588
E: [email protected]
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CUMBERLAND AREA
The housing market for the “Island City” of Cumberland, as well
as the surrounding Beaver Dam
Lake area, is starting to make
waves. Steadily recovering from
the market crash in 2008, local
real estate experts say consumer
confidence is rising and more
inventory is becoming available
for buyers to choose from. The
area is currently experiencing a
seller’s market with heightened
buyer demand and homes selling
at asking price.
tive to buyers for its modest
three-season, lakeshore homes,
priced comfortably around
$120,000. On the high end, buyers can find luxury year-round
properties priced upwards of
$600,000.
Being a quick, two hour escape
from the Twin Cities marketplace, roughly 70 to 80 percent
of the Cumberland area’s second
property owners call the Twin
Cities region “home”.
The average buyer for this popular recreational market, offering
more than 50 lakes in a 10-mile
radius, ranges from young families to Baby Boomers preparing
to retire; many are looking for a
summer cottage they can share
with kids and grandkids.
While the summer market is hot,
Cumberland hosts an array of activities enjoyable for all seasons.
In the summertime, homeowners
and their families can enjoy boating, swimming, fishing, skiing and
wakeboarding. In the late summer, Cumberland hosts a variety
of community festivals including
Agents say right now demand
the Rutabaga Festival, hosted
is high for three-season homes
annually the weekend before Lawith roughly 70 percent of recre- bor Day weekend. During winter
ational property owners utilizing months, Beaver Dam Lake is a
their homes exclusively in the
popular location for ice fishing,
warmer months, while 30 persnowmobiling and cross country
cent of homeowners live in the
skiing among various other winarea year-round.
ter sports.
The Cumberland area is attrac-
“
The area is currently experiencing a seller’s
market with heightened buyer demand and
homes selling at asking price.
”
GREATER NORTHWOODS AREA
“
Baby Boomers, five to 10 years out from
retirement, are more often purchasing
properties as they look to claim a second
home and eventual retirement location while
prices are still lagging and interest rates hover
at record lows.
”
Wisconsin’s Greater Northwoods
area, affectionately referred to
as “Nature’s Original Waterpark”
for its more than 3,200 lakes,
streams and ponds, has recently
become a hot spot for land sport
enthusiasts. According to local real estate agents, with the
recent expansion of its bike and
ATV trail systems, they’re seeing buyers flocking to the area
for more than just its lake-land
reputation.
Real estate experts explain buyers are still generally traveling
from the Greater Chicago area
and surrounding parts of Illinois,
Minnesota (predominantly the
Twin Cities), and southern and
central Wisconsin to purchase
a second home in the Greater
Northwoods area. And they’re
seeing a variety of buyers.
Along with the land lovers, Baby
Boomers, five to 10 years out
from retirement, are more often
purchasing properties as they
look to claim a second home
and eventual retirement location
while prices are still lagging and
interest rates hover at record
lows.
A typical home in the region
starts around the $250,000
price point. Buyers searching for
waterfront homes can expect
this number to increase based on
location. A three bedroom, two
bath property on the Minocqua
Chain of Lakes begins around
$300,000 while the same type
of cottage on the Eagle River
Chain of Lakes begins at about
$250,000. To-date in 2015,
the most improved price point
for properties in the Greater
Northwoods area includes cabin
homes from the $200,000 to
$300,000 price range.
On the high end, buyers can find
properties priced over $1 million,
encompassing a sandy beachfront, acreage and thousands
of square footage to host large
family gatherings and holiday
celebrations.
The Greater Northwoods area
is unique in its attraction to a
wide range of prospective buyers. The forested lake community
attracts second home buyers for
the many outdoor activities it
has to offer year-round, including fishing, camping, waterskiing,
boating, hiking, swimming, and
snowmobiling.
DOOR COUNTY AREA
“The Cape Cod of the Midwest”
is seeing an uptick in demand
for recreational homes due to a
recent rise in water level, which
has been considerably low for
the last 10 years. Door County
area real estate experts say
harbors have recently become
more visually appealing to buyers than they have the past few
years because the water level
has returned to its ideal height,
no longer exposing lake bottom
and shallow, rocky shores. This
raises the marketplace’s outlook
as it’s beginning to stir attention
from buyers and adds countless opportunities for the region
moving forward.
Waterfront properties are highest in demand among buyers
looking to purchase a second
home in the Door County area.
Surprisingly, buyers are willing
to pay increasing amounts for
these types of homes. Economic
recovery has shifted buyers’
mindsets as average area prices
for cottages are up more than 18
percent from just one year ago.
in the spring and summer, the
majority of closings take place
in fall and winter. Warm months
bring more traffic to the area
and therefore more interest
among buyers ready to begin
conversations about a potential
purchase. The average buyer interested in the Door County market is looking for a retirement
or summer cottage to get away
with family and friends during
holidays and vacations.
The majority of recreational
property owners in the Door
County area travel from Milwaukee, Madison, Chicago, Green
Bay and the Twin Cities to enjoy
the region’s famous sightseeing, shopping, hiking, camping,
swimming, salmon fishing, scuba
diving and snowmobiling.
While Door County is famous for
its summer season, agents say
buyers considering year-round
homes find recreational opportunities during the fall and winter
months as well. The spectacular change of colors in the fall
and sports activities accessible
A typical three bedroom, two
throughout the peninsula is genbath waterfront cottage in the
erating a strong following during
area averages around $650,000. the fall and winter months that’s
On the high end, buyers can find becoming competitive to sumproperties priced over $1 million. mer. Additionally, the tremenOne of the highest priced residous snowmobiling, snowshoedential properties sold this year
ing, fat tire off-road biking and
closed at $1.2 million for its prime cross country skiing available in
lakefront location and stunning
winter brings recreational homeshoreline views.
owners to the area year-round.
While interest in the area peaks
“
Door County is seeing an uptick in demand for
recreational homes due to a recent rise in water level,
which has been considerably low for the last 10 years.
”
Indiana
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Northeast Region
Mark Skibowski
RE/MAX LAKES
P: (574) 834-1233
E: [email protected]
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Lake Monroe Area
Todd Loucks
RE/MAX CONNECTION
P: (812) 824-2070
E: [email protected]
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Patoka Lake Area
Tim Mason
RE/MAX MIDWEST REAL ESTATE & APPRAISAL
P: (812) 664-0845
E: [email protected]
NORTHEAST REGION
The abundance of lakes in the
northeast Indiana region gives
curious second-home buyers
plenty of options to choose from
when looking for a recreational
property. More than 100 lakes
can be found in Kosciusko County alone. According to local real
estate agents, the types of property are just as diverse, ranging
from one-bedroom, turn-of-thecentury cottages to multimillion
dollar lakefront mansions.
While demand is high from buyers for a second home in the
$150,000-$250,000 price range,
the average list price for homes
below $500,000 currently sits
at $213,224. Alternatively, one
property located on 150 feet
of Lake Wawasee’s 25 miles of
shoreline recently sold for $3.5
million.
No matter their budget, buyers are all looking for the same
thing: a summertime escape
from their day-to-day lives.
Property owners typically hail
from within a three-hour drive including Fort Wayne, Indianapolis,
western Indiana and even Chicago. Most buyers are two-income
families with stable employment
whose consumer confidence has
rebounded since the 2008 recession.
“
The overall pace of sales in Kosciusko County has been slower
this year by about 5 percent
through June 30. The typically
busy start to the summer season
was hampered by 26 days of rain
in June alone. Real estate experts anticipate greater interest
as the weather improves through
mid-late August.
From Wawasee to Waubee and
Webster to Winona, the lakes
in the area create a paradise for
boating and fishing enthusiasts.
Each June, residents show just
how serious they are about their
love of the water with the annual
Northern Indiana Lakes Festival
that attracts 5,000 attendees every year. The Tri-County Fish &
Wildlife Area in Syracuse, Indiana
provides 3,546 acres of land for
hunting and 10 natural lakes for
fishing to catch largemouth bass,
sunfish, crappie and trout.
With outdoor adventure, family
friendly activities, arts and crafts,
shopping, fine dining and festivals, it’s no wonder why northern
Indiana is so attractive to prospective buyers.
While demand is high from buyers for a
second home in the $150,000-$250,000
price range, the average list price for homes
below $500,000 currently sits at $213,224.
”
LAKE MONROE AREA
“
Year-round lake views are typically the highest
price per square foot while wooded views and
golf views are surprisingly affordable.
”
Indiana’s reputation as a landlocked state falls away the
closer you get to Lake Monroe,
located 10 miles southeast of
Bloomington and an hour’s drive
from Indianapolis. As the largest
lake within Indiana’s borders, its
scenic shorelines surrounded by
wooded hills are a big draw for
Hoosiers looking to buy a second
home.
Recreational property owners
around Lake Monroe are mostly
working professionals whose primary home is within a 2-3 hour
drive – hailing from such cities as
Indianapolis, Louisville and Cincinnati. Meanwhile, retirees in the
area typically use their properties only in the summer months
before heading south to warmer
climates for the winter.
The demand for recreational
properties has steadily improved
since the recession. Sales in
2015 so far have improved over
2014 and RE/MAX REALTORS®
expect that trend will continue
at least through this season, the
result of increased consumer
confidence.
Not surprisingly, the most popular seasons to buy in the Lake
Monroe area are spring, summer and early fall. The boaters
looking to purchase recreational
properties usually start looking
in early spring so they can use
the lake and their new property
for the entire season.
While there are homes on and
near the lake, the majority of vacation homes are condominiums
at the Eagle Pointe Resort area,
which has seen an increase in the
units sold so far in 2015 by 36%
compared to last year.
Boating, swimming, and golfing are all popular Lake Monroe
activities. Lovers of the great
outdoors can take advantage
of the full-service marina before
heading out to fish for bluegill,
striped bass, largemouth bass
and crappie. And some of the
best hiking, horseback riding and
camping await visitors at Brown
County State Park or Yellowwood State Forest.
Price ranges do vary considerably with the biggest variable
being the view. Year-round lake
views are typically the highest price per square foot while
wooded views and golf views are
surprisingly affordable. A twobedroom and two-bath condo
will normally sell in the $60,000
to $200,000 price range with
the current average price sitting
at about $116,000.
With many different secondhome styles and floor plans
available within a wide price
range, and amenities and attractions to suit any interest, Lake
Monroe has earned its reputation as one of Indiana’s best
and most affordable recreation
destinations.
PATOKA LAKE AREA
Homes may not be found along
the shores of Patoka Lake – but
that’s not stopping potential
buyers from considering the
“jewel of southern Indiana” for
their second home. In fact, local
RE/MAX REALTORS® say the
absence of lakefront homes just
means prices in this area are
more affordable than other recreational property markets in the
Hoosier State.
The current starting price for
a typical cottage in this area
begins around $80,000, which
helps keep demand steady,
especially for cabins and log
homes. Buyers tend to be older
couples – retirees looking for a
second residence or to move
to the area full-time. They are
coming largely from Evansville,
a short 90-minute drive away,
Indianapolis (2+ hours) or even
northern Indiana to enjoy the
8,800-acre lake and the surrounding beauty of Hoosier
National Forest’s 202,000 acres
of rolling woodlands.
Despite the lower starting price
for recreational properties,
luxury properties are also prevalent. While starting home prices
in the Patoka Lake area stay
comfortably below $100,000, a
high-end property recently sold
for $750,000.
“
Swimming, boating, hunting and
camping are the primary activities that draw recreational interest, as do the area’s rolling hills
for hiking and biking. Fishing
enthusiasts in particular enjoy
the lake’s many quiet coves to
explore for crappie, largemouth
bass and some monster catfish
that locals like to keep secret.
But, there are plenty of other
attractions within a 30-minute
drive that make Patoka Lakes
an all-season draw, including
its proximity to Paoli Peaks Ski
Resort for snow skiing and snowboarding to the north, historic
Jasper to the west and Marengo
Cave’s five miles of passageways
to explore to the east.
For the less adventurous, nearby
shopping options and the architectural wonders of French Lick
are available to enjoy, including
an 18-mile, train ride between
French Lick and Cuzco that offers spectacular views of Hoosier
National Forest.
Taking all Patoka Lake has to offer, real estate agents can attest
to the continued popularity of
this highly attractive, yet affordable, recreational hotspot.
… the absence of lakefront homes just means
prices in this area are more affordable than
other recreational property markets in the
Hoosier State.
”