The Market is what the Market is!!!
Yes we have seen an increase in the number of listings here in the Northwoods but the good news is spring is only a month or so away. We have seen signs of it, a few days of temperatures in the high 30's, but no complaints about winter 2007/08. Our snow fall this year has been great and we are looking for our lake levels to rise again or at least hold at their current levels and if we get some spring rain we will be dancin in the streets!
Well, now that you've got an update on the weather, let's move on to real estate. People are wondering, is this the right time to purchase a property? Many buyers feel a little uneasy about taking the plunge, they ask themselves is this the bottom, or should we wait? All we can really tell you is that we do have investors moving in and buyers who did not think they could afford an up north getaway, but are now feeling like they have a shot at it, that is all good news for our market! I can't predict where the bottom will be, but we'll know we've hit when the market starts to make its move again.
An indicator we use to determine whether the market is a buyers market or a sellers market is the number of current listings vs sold properties, using a macro view this can be very misleading. The national media typically focuses on large coastal markets, which in some areas are down as much as 40% with huge inventories, sounds like a buying opportunity there!Lets take a micro view of our market; We are dealing with recreational markets in Northern Wisconsin which have been flat with some decrease in pricing over the past 2 years, but how much?
It depends. Lake front, vacant acreage small lots to larger lots, city homes and off water homes, areas like Rhinelander and Park Falls are very flat with an increase in forclosures. This brings our forclosure rates up but really this is not a true indicator of our overall market. (Waterfront properties as a percentage of forclosures in this area are minimal) These types of towns are part of our MLS system and do factor into our numbers on a Macro scope.
Take other factors like low water levels on many of our lakes, for example the Manitowish Chain. Water level changes because of prelonged drought and uncertain DNR lake level initiatives have had a huge effect within the past 3 years a with Manitowish properties.
A summary of Minocqua Chain properties in 2005 sales of 51 properties with an average price of $606,000. Average days on days on market at that time was 84. (really good year overall our entire market area) In 2006 things started to change with 31 sales aveage price of $477,000. Average days on market 158. 2007 hoping for the up turn there were 34 sales and an average sale price of $648,000. Average days on the market 154. (price is moving up and a few more sales that's good!) Today we have 48 properties listed with an average price of $628,000.
Once again we are sometimes puzzled by the numbers but keep in mind they can be manipulated to make things look good or not so good. It is like the weather we only care about what is over our heads although the national media and pundits like to add up all the rainfall in the nation and see how it looks on a national average. If you own Florida property (and we have many clients that do) you have seen the run up and now the run down. We certainly have been in a slower market from 04-05 but is this a normal market??? Anyone purchasing a recreational or retirement investment Up North have a number of factors in mind...for 90% of our buyers it is a life style change and a way of life, they have been either planning or dreaming about for a number of years.
Imagine the water on your lake glistening like thousands of diamonds, eagles soaring, the sound of loons calling out to one another the kids and grandchildren fishing off the pier or the whole family gathered aound a warm fire, all of these images make a lasting impression on families and have for generations. Don't wait for a national media market to tell you when the best time is for creating a family legacy "Up North". If this is something you have been planning or dreaming , NOW is a fantastic time to realize that dream, with interest rates at historical low levels and plenty of inventory to choose from...let us help!
We would be happy to provide a real snap shot view of your lake or neighborhood of recent sales and available properties, all you have to do is email erik@dreamnorth.com or call 800-472-207 x 308. And "oh by the way".. if you or a someone you know is looking for realestate or needs some help in evaluating their property we would love to help...
Don't forget about using your IRA...Yes you can...contact us for details.
IRA investing in Real Estate? Yes...see this web site www.Penscotrust.com for more information. Great opportunity to diversify give me a call or email me to discuss ways in which you can find alternative investments with your self directed IRA's.
Erik Johnson, Broker Owner
CRS, GRI
DreamNorth Team
