In the shadow of towering mansions in the Sidney on Lanier neighborhood is a quaint two bedroom, one bath lake cottage that David Dell and his wife Caroline recently purchased.
It will be a second home for the Johns Creek family, Dell said as he loaded the last owner's leftovers — a green vinyl chair, gold floral curtains, an old chest of drawers — into his truck for a trip to the dump.
"A good value was 100 percent of the equation, absolutely 100 percent" David said as he worked near the shore and the house's lake dock. "... There were other (homes) that were a lot nicer as far as newer or more quality but they were going to be more expensive."
Homes like the Dells,' lake cottages under half a million dollars, are in high demand as lake season nears. According to numbers from The Norton Agency, a local real estate firm, if no more homes in that price range with private docks were to go on the market, the current stock would sell out in a relatively short five months.
The same figure for homes over $1 million? Sixteen years.
"We're really seeing a lot of buyers scoop up the lower end lake homes pretty much as fast as they can," said Sheila Davis, a lake specialist for The Norton Agency. "I've sold through half of my inventory in the first quarter, so I've had to go out and knock on doors to get more inventory. It's been very fast paced for the first quarter."
Lake home prices peaked in 2007, selling at an average of $655,000. Today, they're selling at an average of $465,000.
But the increased demand seen in the last few months for homes under half a million has started to stabilize prices in that range. And overall, the lake market is beginning to creep toward recovery, according to The Norton Agency's Frank Norton.
Soon, the stabilization at lower prices will ripple through the rest of the lake market, with demand for homes between $500,000 and $650,000 expected to increase by next year, Norton said. Most buyers in that price range are looking for second homes.
But the stabilization of lake homes over $1 million, normally primary residences, is another question.
But the 16 year supply at that price has been widely caused by delayed, not dropped, spending.
"Right now those people with that kind of buying power have put off their buying decisions," Norton said. "...Over a million, those tend to be permanent residents. We're not concerned with that. We think that's momentary."
Davis said the focus on value has caused many lake buyers to raise their standards. While buyers in the past would purchase a less desirable home on a beautiful lot with plans for major renovations or rebuilding, move-in ready properties are now of higher value.
"Where as before they just wanted a great lot, it didn't matter, money was no object for a lot of them, now they're demanding a great house, great water, a great lot," she said. "They want it all at a great price."
The Dells actually bought two lake homes because the owner would only sell his properties in a package deal. They plan to fix up one house and have already listed the other for sale. While the second home is actually bigger and a bit nicer, Dell said as he worked in the front yard last week, they settled on keeping the lot closer to the lake.
Looking down the street, he points out a large brick house at the water's edge.
"You could build something like that and then all the sudden you've got a million dollar house," he said. "You can't change the property. You can only change the house."
While prices and demand have both shifted over the last few years, the emphasis on location hasn't, Norton said, and homes with long lake views and easy water access will always be the most coveted.
And as metro Atlanta and its business community continues to creep north, the higher priced homes will grow in demand, Norton said.
"In 20 years Atlanta will grow to us and Lake Lanier will be in the heart of Atlanta, Ga., which means that we're seeing millionaire rows developed around Lake Lanier," Norton said. "We're going to continue to have business executives locating on Lake Lanier."