Economics of lake real estate
With all the recent rain that we had back in May, have the new lake levels had any impact in lake property values? Trying to sell a property on Lake Travis was a challenge when the lake levels were so low and most properties had dry docks! The recent rains have changed all of this and sales are on the rise.
According to the Lower Colorado River Authority, during the 30-day period from May 26 to June 24, the water in Lake Travis rose about 23 feet to a storage level of 84 percent of its capacity.
Rising lake levels accounted for the pending sale of at least one Hudson Bend waterfront property, said the owner’s Realtor, Alex Landry of Keller Williams-Lake Travis.
The Lake Travis home had been for sale for a couple of years during the region’s drought, she said. Prospective buyers told Landry they loved the photos of the home but were dismayed when they saw it had a dry dock, she said.
“People would ask, ‘Is the water ever coming back?,’” Landry said. “When there was no water [in Lake Travis], even for those homes with [a good] price value, we still had trouble getting people in.
“As soon as it started raining, there was a huge uptick in showings.”
She said the home is under contract following negotiations with multiple buyers.
Other local real estate agents say they are not quite as certain that the dollar signs on waterfront properties will follow the increase of recent lake levels.
Economics of lake real estate
In September 2011 the Lake Travis Coalition—including Austin, Briarcliff, the Hurst Creek Municipal Utility District, Lake Travis Chamber of Commerce, Lakeway, Lago Vista and Spicewood—released its Lake Travis Economic Impact Report that assessed the financial effect low lake levels have on the region. The report, prepared by consulting firm RCLCO, found a correlation between lake levels and property values, with Lake Travis offering $8.4 billion in assessed property value at the time.
“A full Lake Travis generates revenue from property, sales, hotel and mixed-beverage taxes that buys ambulances, maintains schools and provides state government with needed funding,” the report stated. “When lake levels remain below 660 feet, visitations decline and businesses contract.”
However, not all experts agree that waterfront property values rise and fall with the lake level.
