Area Real Estate Market Floods as Lakes Drain
Canyon Lake Realtor Sashia Diamond says the Guadalupe-Blanco River Authority’s (GBRA) decision to systematically drain lakes Gonzales, Meadow, Placid and McQueeney on Sept. 16 could flood Canyon Lake’s real estate market.
Consumer interest in Canyon Lake properties was already on the rise this summer as prospective buyers turned their attention from Lake Dunlap real estate after that lake’s 100-year-old spillgate collapsed in mid-May, draining the lake and leaving property-owners pointing fingers at the state agency.
On Aug. 15, GBRA announced that third-party engineering assessments determined a drawdown of its remaining Guadalupe valley lakes was the only available option for minimizing the risks associated with the aging dams.
“We are going to see a flood of people coming to shop real estate on Canyon Lake once ‘lakefront’ properties cease to exist on empty GBRA reservoirs,” said Diamond, who works for Alabama-based Lakehomes.com. “Development around the lake has increased noticeably over the last three years, and we will likely see even more new builds and subdivisions popping up in an attempt to keep up with demand.”
According to information provided by LakeHomes.com, this fall nearby lakes Placid, Meadow Lane and McQueeney have more than 100 properties for sale along their shores and in surrounding areas. An additional 25 properties are for sale on what remains of Lake Dunlap. These 125 listings total nearly $90 million in value.
But Realtor Tara Biesboer, who specializes in lake properties, said Lake Dunlap homeowners aren’t throwing in the towel yet.
“There hasn’t been much change on Lake Dunlap since May,” she said. “I have seen lake home prices drop by $50,000 here and there, but that’s really on a case-by-case basis. Area homeowners aren’t ready to give up on saving their lake.”
Diamond said homes on nearby Lake McQueeney are coming off the market as “for-sale” properties and are being relisted as rental homes instead.
LakesHomes.com Chief Executive Officer Glenn S. Philips warns property owners against panicking.
“Scarcity breeds demand, but the market will level itself,” he said. “There will most likely be a boom-and-bust cycle, but it will level. The numbers clearly say that concerns have not manifested themselves yet. We should keep a watch on this unique situation.”