Reasons to Sell Your Lake Home During a Drought

• You can easily sell your West Texas lake home during a drought due to:
  • High buyer activity
  • Low inventory
  • The desirability of retiring in Texas

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Showcasing lakes like Brownwood, Leon, and Palo Pinto, West Texas, attracts visitors from all over the country. Recently, these lake markets have expanded significantly, as many people are choosing to retire in the Lone Star State. So if you have a home on a West Texas lake, you can rest assured that you own prime real estate. However, you might be worried that West Texas lakes will lose their property values due to the recent drought. Lake levels are dropping—why should you sell your home now? Surprisingly, now is one of the best times to list your West Texas lake home! Check out these three reasons for selling your lake home during a drought.

Buyer Activity

Although many southwestern states are experiencing droughts, buyer activity has remained strong. According to Sandi Schwartz, an environmental expert and science journalist, the Southwest is seeing more buyer activity now than it did pre-drought. For example, in a recent Redfin report, studies showed that in 34 out of 129 major southwestern cities, 50% of homes underwent significant drought. However, out of those 34 cities, 25 experienced positive net inflows in the year’s second quarter.

Redfin economist Sebastian Sandoval-Olascoaga posits that people will move to drought-prone areas as long as these regions fulfill other items on their lists. He explains, “Many people take climate risk into consideration when deciding where to live, but other factors, like affordability, often take precedence given that rent costs are rising and monthly mortgage payments for homebuyers are up nearly 40% from a year ago.” Since many West Texas lakes boast more affordable prices, buyers will likely prioritize home prices over the dry climate.

Low Inventory

Despite the influx of buyers, West Texas lake markets are currently showcasing low inventory. This inventory position means that those who list their lake homes have a good chance of selling them at ideal price points. As Glenn Phillips, CEO of Lake Homes Realty, elucidates, buyers become more eager to purchase lake property when inventory is low. So, as soon as a home hits a low-inventory market, it immediately gains traction. In 2021, Phillips predicted that throughout 2022, there would continue to be a shortage of homes on the market. Due to low inventory, many buyers may not have found their dream lake home in the past year. Instead, they might be waiting for your home to hit the market—and they’re likely to pay a competitive price.

Texas Lakes Are A Top Retirement Location

According to a report by SenoirLiving.org, Texas is the second-most popular state for retirement relocation. An estimated 90,500 Texas residents age 50 or older recently moved in from another state. Texas attracts these retirees because it boasts many benefits, such as no state income, inheritance, or estate taxes.

Furthermore, Texas features an agreeable climate and mild winters. The state showcases various terrain, ranging from canyons to coasts. So, it’s perfect for those who want to travel without venturing too far from home. The Texas lakes are an incredibly picturesque place to retire, providing plenty of opportunities for relaxation, recreation, and community. Many buyers are not likely to turn down these benefits in the face of a drought with an expiration date.

SSo now you know the top reasons for selling your lake home during a drought. And once you realize you need a Texas lake expert, don’t hesitate to call Cindy Lanham!