As the new year dawns, the lake real estate market finds itself at a crucial juncture. Following years of highs and lows marked by pandemic-fueled demand, inflationary pressures, and fluctuating interest rates, 2025 is shaping up to be a year of clarity and balance—a turning point that promises renewed opportunities for both buyers and sellers.
For much of 2024, the market was caught in a stalemate. Buyers, hesitant in the face of rising interest rates, held out for deals that seemed increasingly elusive. Sellers, emboldened by the booming market of previous years, clung to prices that no longer aligned with reality. The result? Transactions slowed, inventory stagnated, and dreams of lakefront living felt just out of reach.
But the winds are shifting.
From Stalemate to Opportunity: The Market Shifts
As 2025 begins, sellers are coming to terms with the new normal, adjusting prices to reflect current market realities. Buyers, meanwhile, are regaining confidence, motivated by stable pricing and a renewed desire to invest in lifestyle properties. This alignment signals the end of the stalemate and the beginning of a more dynamic market.
We are expecting to see at least a 15% year-over-year rise in transactions compared to 2024, with several key factors driving this forecast.
First, with the 2024 election and holiday distractions behind us, both owners and buyers of discretionary properties like lake homes will refocus their attention on real estate in 2025.
Second, demand for appropriately priced lake homes has remained strong and will continue to do so. Buyers are simply looking for more property options at what they consider practical prices.
Finally, more owners will be ready to complete a sale, shifting from the “overly aspirational” pricing of 2024 to more realistic expectations. As these sellers become more practical, the compounding factors of market conditions, interest, and buyer readiness will encourage many to finally get serious about selling—especially after waiting, sometimes for years, for the right moment.
Additionally, the “Ds”—death, debt, divorce, downsizing, and other lifestyle changes—will continue to play a pivotal role in motivating sellers. These factors, compounded over years, are expected to drive new listings that better match buyer expectations.
“The turning point is here,” says Glenn S. Phillips, CEO of Lake Homes Realty. “We’re seeing sellers who understand the need for realistic pricing and buyers who are eager to act. This balance is breathing life back into the market.”
Clearing the “Phantom Inventory”
In 2024, we saw a noticeable increase in lake properties listed for sale, but this surge doesn’t reflect a healthier market. While demand for lake real estate remained strong and practical, many homes sat stagnant due to overpricing.
Phillips refers to these properties as “Phantom Inventory” – homes that are listed but not sellable at their current price. Our data shows that appropriately priced lake properties still sell quickly, often at or slightly above the list price.
However, those overvalued properties contributed to the growth of Phantom Inventory, creating a stalemate in transactions throughout the year.
“Our data shows that appropriately priced lake properties sell quickly and close to the asking price, sometimes even above,” said Phillips. “2025 will be the year when buyers and sellers meet in the middle, turning phantom inventory into real opportunity.”
This winter offers a broader selection of properties. The Winter 2024 Lake Real Estate Market Report by Lake Homes Realty indicates there are now 94,887 lake home and lot listings, an increase of 6,662 from the 88,225 listings available in Winter 2023. But that’s not all—the total market value of these listings now stands at $50.65 billion, highlighting a strengthening market with significant investment potential. This marks a positive shift from the $48.02 billion reported in Winter 2023. With more options and a rising market, this winter offers an ideal opportunity for buyers to discover their dream lakefront property.
Top Lake Real Estate Markets Nationwide
This winter, Lake Norman leads with the most extensive selection of properties, boasting a total value of $1.18 billion in lakefront, lake view, and lake access properties across North Carolina, according to Lake Homes Realty’s Winter 2024 Lake Real Estate Market Report.
Following Lake Norman, homebuyers seeking lakefront living have numerous options across the country. Other top contenders include:
- Puget Sound, Washington
- Lake Tahoe, Nevada
- Lake Washington, Washington
- Lake Michigan, Illinois
According to the quarterly report, fifteen states serviced by Lake Homes Realty had over one billion dollars in lake home and lot real estate listings.
Texas continues to set the standard with a massive $9.67 billion in lake property listings, followed by Florida at $5.8 billion and Washington at $3.5 billion. Other states that surpass the $1 billion mark include:
- North Carolina ($2.964 billion)
- Michigan ($2.820 billion)
- Tennessee ($2.656 billion)
- Georgia ($2.656 billion)
- Minnesota ($2.361 billion)
- Missouri ($1.669 billion)
- South Carolina ($1.593 billion)
- Alabama ($1.592 billion)
- Arkansas ($1.557 billion)
- Illinois ($1.287 billion)
- New York ($1.251 billion)
- Idaho ($1.046 billion)
When it comes to volume, Texas leads the way with 17,740 lake home and lot listings. Florida follows closely with 11,156 listings, and Tennessee holds third place with 6,419. The next states with the most listings include:
- North Carolina (4,712)
- Georgia (4,673)
- Arkansas (4,543)
- Missouri (4,482)
As for the most luxurious lakes, Florida, Washington, Vermont, and Nevada dominate the scene. Lake Vedra in Florida tops the chart with an average price of $5.962 million, closely followed by Lake Tahoe in Nevada at $4.241 million.
Other high-end lakes include:
- Lake Washington in Washington ($3.940 million)
- Lake Champlain in Vermont’s Addison area ($3.470 million)
- Lake Butler in Florida ($3.321 million)
Across all lake properties listed on LakeHomes.com, the average price is a more accessible $533,865.
Top 10 States for Lake Property Listings
- Texas – 17,740
- Florida – 11,156
- Tennessee – 6,419
- North Carolina – 4,712
- Georgia- 4,673
- Arkansas – 4,543
- Missouri – 4,482
- Michigan – 4,254
- Minnesota – 3,985
- Alabama – 3,764
Top 5 Most Expensive Lakes for Home Listings (Average Price)
- Lake Vedra, FL – Avg. of $4,613,740
- Lake Tahoe, NV– Avg. of $4,241,278
- Lake Washington, WA – Avg. of $3,940,586
- Lake Champlain – Addison Area, VT – Avg. of $3,470,336
- Lake Butler, FL – Avg. of $3,321,225
Top 5 Lakes for Number of Home and Lot Listings
- Lake of The Ozarks, MO – 1,649
- Lewisville Lake, TX – 1,370
- Table Rock Lake, AR/MO – 1,244
- Lake Norman, NC – 1,226
- Puget Sound, WA – 1,190
The Winter 2024 Lake Real Estate Market Report shares a summary of data collected from 168 Multiple Listing Services (MLS) areas in the 38 states served by Lake Homes Realty. It is, to its knowledge, not available from any other source. Thirty-five of these states are covered in this report. States that are not included in this report have data that has not yet been evaluated.