Posted: Sun, 31 Jul 2011 05:09 PM - 16,999 Readers

By: Jacqueline Ingles

When Randy Simpson bought his cliffside home on the Pedernales River 23 years ago, the river was running high and it seemed like a sound investment.

Fast forward more than two decades, the river is almost bone dry as drought takes over Central Texas.

"The water used to go up to that Oak tree," explained Simpson as he pointed high up on bluff.

The Pedernales River is down to a trickle and that means there is no water running through it in Spicewood, leaving boat docks beached in the river's bed.  Some of the docks on stilts have even collapsed and there is even a pricey sailboat that is aground.

Many of Simpson's neighbors are testing the waters and attempting to sell their waterfront property--even the sale signs advertise waterfront--even though there is no water right now.

"I know the economy is hurting prices some.  Also, between that and the water, you are taking a pretty stiff hit if you try sell right now," Simpson explained.

Simpson would also like to sell but is going to hold out for rain.

But, the news isn't all bad for all waterfront homeowners.

M.E. Cook who owns Bee Cave Realty told KXAN, with other lakes and river down, this is driving the prices of property on already pricey Lake Austin up.  She said this is because Lake Austin has a more consistent water level.

"I think people are asking more and I think buyers are beginning to be pretty selective in how they evaluate that value of property that has good open waterfront," explained Cook.

Cook said Lake Austin has seen roughly 18 significant sales in 2011--meaning homes costing $1,000,000 or more have sold.

On Lake Travis, that number is down to four.

"People are really questioning whether long-term are we going to be able to sustain the water levels in Lake Travis that we see here at Lake Austin," Cook added.

Cook said the drought is creating a tricky situation for realtors because they cannot guarantee boat docks will be useable in future years.

"It is important we show the what the conditions are today and what can happen," Cook said.

On both Lake Travis and Lake Buchanan, only one public boat ramp remains open on each.

"I think buyers are pretty afraid right now of making an investment," Cook said.