5 Things We Know and 5 Things We Think We Know
What we know:
- We are making more sales in the fall of the year. This has been the trend for more than 5 years and will continue until we have lowered the for sale inventory.
- Real estate is local. You could also add segmented. Northern Minnesota lake properties are not having appreciation like Metro lakes. Especially Lake Minnetonka. The distance and families’ limited time are important factors.
- “Let’s build our dream home.” This feeling from buyers is strong and not changing. Local builders are busy and this has been the trend now for several years.
- Your money has great buying power. With the low interest rates, and existing homes selling for less than replacement value, these are great times to be a buyer. Let’s Go! (This IS a great time)
- Primary residential homes sell fast! This is true all across the Lakes Area, State and Country. When you read or hear about national home sales, this is the market segment they are reporting on.
- Will constructions costs continue to go up? Unfortunately there have been significant natural events that will require resources and effort to rebuild. This will affect the cost of construction going forward.
- Will existing homes be an even better value compared to the cost to build new? Yes, that could happen soon. There will be a point when the value of existing homes is so great fewer people will choose to build.
- Will primary residential homes sale continue? As long as interest rates are low. Investors are a real market segment that is active. Rates go up, returns go down and sales will slow. That’s the natural cycle of real estate. A lower interest rate is better than a bottom price. Count on that!
- Is our area changing for the better? Change is inevitable. Changes in Crosslake are making a statement but we will still remain the small resort-style town with amenities our residents are asking for. Pequot Lakes, Breezy Point and south will all find their new vibe and we will be a still be the regional resort area with several options for people. Fun!
- Has the dream gone away? Maybe for some buyers however, as the area develops but stays within the lakes character there will be people and families that will want to be a part of the Lakes Area.
We noted four items on the back page of this newsletter to give you an idea of the good things that are happening around the Lakes Area.
The Hwy 371 Four Lane Expansion and the Pequot Lakes Bypass are now complete. The part of Hwy 371 going into Pequot has been re-named Patriot Drive and it gives the same easy access to the many Pequot Lakes businesses by either the exit at CR 168/107 or the exit to CR 11. To celebrate completion Pequot Lakes is even hosting an “All Roads Open Celebration” October 18th from 2:00-3:30 p.m. You can go to www.pequotlakes-mn.gov for all the details.
Crosslake is bustling with new happenings! The dedication and ground breaking of the new Crosslake Community School took place in August. CCS is a public charter school and opened in 2000 at Camp Knutson as an “environmental education” school. It has now outgrown its current location next to City Hall with a total of 205 students! The Lakes Foundation is raising money for this project and there will be no new taxes for area residents. They have come up with a unique fundraising effort. It’s called “LAKE Acres” which is a program where people can buy abstract parts of the Whitefish Chain! Check it out at www.buildtheschool.org.
Crosslake Town Square is in Phase I of a whole new look and feel. Construction has begun off of Swann Drive behind the Larson Group office. There will be both 3 bedroom and 2 bedroom townhomes built directly across from the Crosswoods Golf Course. They will have high quality finishes that are projected to be in the $284,000-$399,000 price range. Further development plans for Crosslake Town Square are so exciting! Plans include an apartment complex, parks, a senior living complex, outdoor hockey rink and more. Should you have questions on the townhomes you can call our office at 218-692-6920 for further details.
The Pine River-Backus High School was also under construction this summer with the remodeling of the school’s entryway and office spaces. The canopy over the entrance was removed and the new entryway improves security at the front entrance and high school offices. It also gives a more user-friendly atmosphere and easier accessibility for people with mobility issues. The change gives a nice look and feel to the high school.
Bruce Larson & Rob Birkeland