Lakeshore awash in sales of pricey homes

Sunday, July 23, 2006
By Myron Kukla
The Grand Rapids Press

If you're still dreaming about buying a $1 million home overlooking Lake Michigan, it's time for a reality check.

Beginning prices these days for Lake Michigan waterfront homes in Allegan and Ottawa counties start well above that.

"The $1 million homes aren't out there any more and, if any come on the market, they sell quickly," said Summit Properties Associate Broker Beth Foley, whose company specializes in waterfront properties.

Between Saugatuck and Grand Haven recently, eight waterfront homes were listed at $2 million and above, said Foley, a 20-year veteran of lakefront real estate sales.

Two other small cottages on small lots were listed at $750,000 each. Farther north, in Muskegon County, just two Big Lake properties are listed below the million-dollar mark.

"People put big prices on them, and the buyers are paying the asking price," said Foley noting many old cottages being bought are torn down and replaced with $2 million to $3 million year-round homes. It's called land recycling.

Lake Michigan property has been climbing by 12 to 15 percent annually since 2000, and Foley said the majority of buyers are coming from Chicago and as far away as California, where houses miles from the water often sell for $1 million or more.

"It makes Lake Michigan property look like a bargain," Foley said.

Holland's Greenridge Realty broker Graham Duryee said prices rise the farther south you go.

"It's Chicago buyers," said Duryee, who like Foley and Gleason are members of the West Michigan Lakeshore Association of Realtors, which covers the coast from Glenn to Whitehall.

Realtors, home builders and buyers agree on one thing when it comes to lakefront property. God isn't making any more of it.

"I specialize in building waterfront homes. It's the only place I feel confident in building and knowing I'll have a buyer," said Tony Zahn, president of Zahn Builders Inc.

He said that while home sales on the water have been soaring, the rest of the residential market around the Holland area has been flat, primarily because of corporate layoffs.

Inland lakefront properties such as those on Holland's Lake Macatawa, still can be bought for $500,000 to $800,000.

"Muskegon is also very attractive for waterfront buyers at Vida Nova, which offers 40 new residential units on Lake Muskegon, priced from $300,000 to $400,000," Zahn said. The $15 million development overlooks the lake, a channel and a private boardwalk.

Spring Lake Realtor Mark Gleason said condo properties with water views still can be found in Grand Haven and Muskegon at affordable prices.

"There's some very good deals out there right now on Muskegon Lake for three-bedroom (condominium units) for $300,000 to $400,000 overlooking the lake," Gleason said.

That used to be the price of lakefront cottages a dozen years ago. Not any more.