Price Changes Changing in Alexandria, MN

If you have talked to me anytime between now and last summer or if you visit this site frequently, you will have heard my thoughts about end of declining real estate prices in the Alexandria Lakes Area. Part of my opinion was backed by pending or closed sales and some of it was less concrete such as increases in web-site traffic resulting from organic searches (for example: lake carlos real estate for sale). Or, increases in inquiries from people that at some point in our verbal or email conversations would tell me "we are kind of waiting to see if prices decline more".

The real estate sales that occurred in the last quarter was all I needed to secure my confidence but it was the last trend of waiting that solidified it. Everyone tries (and fails) to call the bottom in a declining stock market and it is no different with lakefront and residential real estate. Because of the masses waiting, there usually is a pretty good jump when the direction in prices start rising as suddenly there is a big increase in demand as most everyone realized they missed the bottom. The graph below further illustrates the change in the real estate market of the Greater Alexandria Area. What it displays is the average changes of list prices by sellers. The changes started getting smaller in March of 2009 and has plateaued over the past two months. In March, I think you will see the green line in this graph continue north because of improving sales and although spring seller confidence appears to have been absent in 2008, it does appear to have reappeared in2009 and I think it will be present in 2010.

Two on Lake Ida Since 2005

Betsy Ross Road is at the northwest side of Lake Ida and there is a bare lot that is over an acre that has been for sale since September of 2005. Over the years there have been price changes, in both directions, and last week the price was lowered and the new list price is also a new low in regards to the ask price.

A few miles south of this lot is another 1 acre plus lot that has shared access to Ida. Its address is Ida View Court and is owned by a local bank. Prior to the bank taking possession it had been for sale in the MLS since 2005 with a starting price of $168,900.

Irene, Rachel, Latoka and Vermont

• Two bare lots on Lake Irene have lower ask prices. Lots in this development have sold in the $180k's.
• On Rachel Lake a cottage with a private setting and level lakeshore has been lowered in price to $159,900.
• A Lake Vermont property that was on the market in 2008 but had been off the market since January 1st, 2009 is back on the market. The list price previously was $363k and is now listed at $288k.
• A Lake Latoka home that I mentioned on January 13th has an accepted Purchase Agreement.

I suspect that I'll be reporting another accepted Purchase Agreement (Lake Le Homme Dieu) by the end of the weekend. There is still time but not much.

Le Homme Dieu, Andrew and Lobster

• The Wharf has had it's doors closed for years with many different tales floating around what was going to happen to the formerly popular spot. It now is on the market in Alexandria's MLS.
• A 3 bedroom/3 bath home with 150 feet of frontage on Lake Andrew has an accepted Purchase Agreement.
• Lobster Lake (Beauty Point) has a new listing in the MLS.
• And finally, the biggest news and opportunity is a $100,000 price reduction on a Lake Le Homme Dieu home.

Southeast Lake Carlos

If you are reading this in Minnesota or another frozen state, I hope this video shot last summer along the shores of southeast Lake Carlos helps transport yourself out of the cold weather for a moment. Note: I have the video set to playback in HD so if you end up with a disrupted playback just look in the lower right hand corned for 720p and change it to 360p or 480p.

HUD Makes Good Faith Estimates Believable

If you'll be buying a house this year, you can expect to have a better sense of what your closing costs will be. The Department of Housing and Urban Development has made significant changes to the Good Faith Estimate.

via www.npr.org

New Lakefront Listings and a Price Reduction

• New bare lot listing on Eagle Lake. Well, kind of new. It is new to the Alexandria MLS but was listed in the Fergus Falls MLS until April of 2009.
• New Lake Miltona townhome listing. Well, kind of new. It was on the market last year from March to November but the new listing does have a price that is $30,000 lower (was $130,000 lower last night as the listing brokerage entered the price incorrectly but caught the error this morning).
• Price reduction on a Lake Geneva Estates townhome. Listed in the MLS on 11/3/2009, the owner lowered the ask price by $5,500.

Mortgage News

Liz Koehler at Wells Fargo Private Mortgage Banking just sent me her weekly update. In it Liz says: Higher than expected inflation news from the UK and India this morning again highlights the need to seize the incredible low rate opportunity we have today. Whether purchasing or refinancing, the time for clients to act is now...

[read the full report]

Two More Lake Home Sales

Add two more pending lake home sales to 2010's docket. A home on the east side of Lake Carlos that has been on the market since March of 2008 when it was listed at $585,000 finally has an accepted Purchase Agreement. The list price at the time of acceptance? $395,000.

The other lake property is on Lake Andrew and also had been on the market for even longer. It was listed in 2007 at $441,000 but didn't have as many price reductions. At the time of the accepted Purchase Agreement the list price was $371,000.

*Note: Both of these Purchase Agreements are contingent on inspection.

Crestwood Drive on Lake L'homme Dieu in Alexandria

The owner of a Crestwood Drive property on Lake Le Homme Dieu has dropped the ask price on a property (again) with 100 feet of high quality lakeshore and a home of approximately 2000 square feet. As you look at the lake, the property on the right has an estimated market value (EMV) of $778,400 and the property on the left has an EMV $531,900. The current list price of this property is $416,900.