MN Lakeshore Property Update
Brainerd Lakes - Crosslake - Pequot Lakes - Breezy Point & Nisswa areas

October 2010

Greetings from Crosslake, Minnesota and the Brainerd Lakes Area!  It has been some time since people were able to be out boating all day, golfing in their favorite summer shirt or driving around looking at real estate with their windows down.  The recent temperatures have brought us back to summer and it has helped our business.

We've experienced an increased level of showings on lakehomes, lakeshore property and cabins.  A few offers have been successfully negotiated.  Even though we haven't seen as many offers come together as we had thought may occur, there are more people actually out looking at property right now than we have had active at this time in several years.  The overall market activity and sales for 2010 is turning out to be much better than prior years of 2008 and 2009.  We attribute this to the historically low interest rates, sellers who are more willing to negotiate their price and the volume of lake properties that are  available for purchase.

Buyers are not making their final decision to move forward with an offer quickly. We live in a beautiful and unique area and people will always want to purchase here but at this time the market continues to lack buyer confidence.  We continue to hear two things repeatedly from buyers who want to be here and can afford to:  "Are the prices going to go down more?" or "Do we really need a second home right now - maybe we should wait?"

Both buyers and sellers are uncertain about the economy and their future and it has had a significant and direct negative affect on the real estate values in our Crosslake, Minnesota - Whitefish Chain market.  There are statistics that show our area property values have gone down an additional 10% since last year. This figure, added with the previous decline from 2007 through 2009, has put the total market decline in the 35% to 40% range.  This is a significant number.  It is hard to believe but unfortunately it's true.  Have we "hit the bottom yet"? hard to tell but many believe prices could decline slightly through year's end.

This could change in the weeks ahead, of course, as the midterm elections are completed.  Time will tell. Real estate and other industries across the country will not pull out of this until there is increased confidence in the future of the economy.  We share your frustration, are working diligently to put your property in front of buyers and will do our best to help you accomplish your goal.  We are optimistic.  We do believe that 2011 will be an even better year for sales than 2010 and we are coordinating our marketing plans accordingly.  Please call or stop in at any time to discuss the market with us.  We always look forward to your input as we move forward with the marketing of your property.

Your Realtors,

Bruce Larson & Robert Birkeland/Owners/Larson Group Real Estate - Shores & More
Specializing in Whitefish Chain, Brainerd real estate, Minnesota Lakeshore property, Minnesota cabins , the Crosslake, Breezy Point, Pequot Lakes, Nisswa, Merrifield areas.