Washington is among the top states in the country for lakefront real estate, according to a report from Lake Homes Realty. But one of the state’s lake markets — Lake Washington — is full of “phantom inventory,” defined as listings that aren’t sellable at their current prices.

Lake Homes Realty’s Winter 2024 Lake Real Estate Market Report indicates that there are 1,190 lake properties (including homes and lots) for sale on the Puget Sound, making it the lake market with the fifth-most listings in the country. Those properties have a combined listing value of over $1.1 billion, making the Puget Sound the second-largest lake market in the country.

In contrast, Lake Washington has far fewer homes on the market — it doesn’t rank in the top 10 lake markets nationwide for new listings. The area’s lake listings, however, have a combined listing value of over $1 billion and an average price of $3,940,000, making it the most expensive lake market in Washington and the second most expensive in the country. Lake Washington also has the most expensive lake lots in the country, with an average listing price of $5.9 million.

Compare those prices to the next-highest lake home prices in Washington: Lake Sammamish, which has an average list price of $2,509,858. That’s about $1.4 million less expensive than the listings on Lake Washington.

An even broader price disparity is seen with Washington’s lake lots: The second-most expensive lots in the state are found on Lake Chelan, with an average list price of $1,255,511. That’s nearly $4.7 million less than the average lot price on Lake Washington.

So, while the data says that Lake Washington had 265 lake listings for sale at the end of 2024 — the second-highest lake inventory in the state, behind the Puget Sound — a majority of those “phantom listings” are priced too high for prospective buyers.

Lake Homes Realty posits that a high number of lake homes across the country sat on the market last year due to overpricing — but appropriately priced lake homes are likely to sell quickly, usually at or above list price.

Glenn Phillips, CEO of Lake Homes Realty, says 2025 will be the year “buyers and sellers meet in the middle,” however, clearing that phantom inventory.

“The turning point is here,” Phillips said in a press release. “We’re seeing sellers who understand the need for realistic pricing and buyers who are eager to act. This balance is breathing life back into the market.”