Tennessee Boasts $1.8 Billion in Lakefront Home Listings
East Tennessee’s attractive natural areas and proximity to major cities in the South is fueling a growing billion-dollar lake real estate market, though inventory lags behind demand, reports the Chattanooga Times Free Press. According to a new report from Lake Homes Realty, there are more than $1.6 billion of active lakefront property listings on 43 Tennessee lakes.
Tennessee “seemed like a great place to live”
“We wanted a relaxing place where we could boat and water ski on a lake of some size,” said Terry Bowman, an Indiana native. With her husband Barry Owens, Bowman purchased a home in Ten Mile, Tennessee, along Watts Bar reservoir. “The mountains of East Tennessee were very attractive and after buying and living in nine different homes through my life, this seemed like a great place to live,” she added.
Satisfied lake homeowners results in inventory issue
“I see a great market right now with a lot of interested buyers, but we have a major inventory problem,” said Daniel Burnside, a Chattanooga real estate agent with Lake Homes Realty. “[There isn’t] any more property and there is tremendous appeal by many people to live on a lake. Once you find your ideal home with a dock on the lake, you probably don’t want to sell,” he said.
Prices moderated by cautious lakefront buyers
The article reports that low inventory hasn’t pushed up prices. “As a whole, lake real estate buyers are not yet in any rush to pay higher prices even when supply is very limited,” noted Glenn Phillips, president of Lake Homes Realty. Lakefront buyers are said to be cautious after the last recession.
“The issue is a limited number of ‘sellable’ homes in many lake markets,” said Phillips, noting that such “sellable” homes need to be in good condition, on decent water, and not overpriced. Homes in the $175,000 to $750,000 range are expected to sell the best over the next few years. However, $1 million homes are continuing to sell, despite lower demand.