Yesterday I provided you with the statistics for active and sold waterfront properties in Itasca County, to give you an idea of how the market is faring there compared to last year. As we found, it is holding its own after the main summer months. And fall can still be a fairly active lakeshore market, depending on the weather...and peoples' moods!
Today, we will visit Wright County just to the west of the Twin Cities. Unlike Itasca County, which would be a very difficult commute from Minneapolis -- in the three hour range -- the Wright County Area lakes are a combination of year-round homes and cabins, mainly for those who work in metro area. So let's see how places like Buffalo, Maple Lake, Annandale and Howard Lake, Minnesota are doing this year.
Like yesterday, we will provide the number of Active Waterfront Properties, along with the average price range and average days on the market. Then we will look at those same categories of Sold properties compared to the ones in the same time frame last year.
Residential Properties
Active on Market
195
Average Price
$397,914
Average Days on Market
231 (total combined days if listed more than once)
Solds 1/01/10 - 9/13/10
55
Average List Price
$321,218
Average Sold Price
$301,208
Average (total) Days on Market
237
Solds 1/01/09 - 9/13/09
51
Average List Price
$360,819
Average Sold Price
$338,422
Average (total) Days on Market
231
Solds 1/01/08 - 9/13/08
53
Average List Price
$379,749
Average Sold Price
$359,774
Average (total) days on market
196
Because of the downward trend still taking place in Wright County, I decided to go back an extra year to compare 2008 as well. It is hard to tell if we are at bottom here yet or not, but we should get good indications of the market overall as we continue to delve into the stats for each county in Minnesota.
Hopefully, this will be helpful for you to get a "crystal ball view" of what might be happening in the market before it occurs, and beat everyone else to the table. Once the market hits bottom, then eveyone knows about it!
As far as Wright County Waterfront Lots, there aren't really enough lake lot sales around the Twin Cities to get a good representation of that type of property movement. Currently, there are 47 lake lots on the market in the county. There were six sales this year during the same time period as noted above, and there were five last year between those dates. For the most part, lakeshore lots will show more realistic numbers in the outer areas of the state.
Come back often as we continue our 2010 Stats Tour around Minnesota.
Tuesday, September 14, 2010
Monday, September 13, 2010
Breaking it Down
Hope you all had a good summer. I decided to take a break from the writing for a few months just to see how this market was shaking out. Some of the talking heads were saying that it was going to be a fantastic real estate year, and others thought we were in for a much deeper fall. Of course, the only way to tell for sure is to look at the market after the fact, and I think we can now start taking a little glimpse into that data.
There is no doubt that the tax credit idea did help spur sales for first time buyers last spring, but the fallout of that is probably still going on. Many of those people would have purchased anyway, and would have evened out the market some over the next several months. Instead, that market came to an abrupt halt once the credits had gone away, and led to headlines in August such as, "Metro-area Home Sales Down 42% Over Last Month."
But our focus continues to be on waterfront properties for the most part. So I am going to start putting out the real numbers -- county by county -- to give you the honest truth.
Today, I am starting with Itasca County, Minnesota, the home of Grand Rapids, Marcell, Bigfork, Coleraine, Deer River, and a few other hamlets. It is also the early home of Judy Garland, who moved away for bigger and better things before she could spend much time out on the lakes. It is a water-filled area where the Mississippi River winds through, and boasts 1007 lakes within its boundaries, according to Mary Shideler -- The Kayak Lady -- who has paddled all of them as of this year, an odyssey she began in 1996.
When you use multiple listing data to look at sales in defined areas, you are always going to have some overlap between various counties. So even though most of these properties are in Itasca County itself, some will be in Koochiching, St. Louis, Cass, and perhaps a couple others that border it. But for the most part, the idea of comparing apples to apples in terms of sales from year to year will remain true.
So here we go. As of today, September 13, 2010, here are the market statistics, broken down into residential waterfront properties and waterfront lots, separately:
Residential Properties
Active on Market
397
Average Price
$317,309
Average Days on Market
209
Solds 1/01/10 - 9/13/10
74
Average List Price
$247,187
Average Sold Price
$226,222
Average Days on Market
236
Solds 1/01/09 - 9/13/09
65
Average List Price
$249,673
Average Sold Price
$226,666
Average Days on Market
220
Lots
Active on Market
323
Average Price
$153,218
Average Days on Market
272
Solds 1/01/10 - 9/13/10
26
Average List Price
$119,675
Average Sold Price
$105,788
Average Days on Market
274
Solds 1/01/09 - 9/13/09
18
Average List Price
$127,216
Average Sold Price
$108,888
Average Days on Market
347
So how does this look overall? We have been having a fairly steady drop in prices for several years, and this year -- although not great -- prices seem to be holding over last year. That should signal the bottom of the dip for Itasca County waterfront properties, so now we just have to wait and see how fast the rebound occurs. Most likely, it will start bringing some people back into the market that were worried about further drops, but it will still be a long process to bring things back close to where they were.
Watch for breakdowns on other counties around the state, as we try to get a handle on where this market is going next.
There is no doubt that the tax credit idea did help spur sales for first time buyers last spring, but the fallout of that is probably still going on. Many of those people would have purchased anyway, and would have evened out the market some over the next several months. Instead, that market came to an abrupt halt once the credits had gone away, and led to headlines in August such as, "Metro-area Home Sales Down 42% Over Last Month."
But our focus continues to be on waterfront properties for the most part. So I am going to start putting out the real numbers -- county by county -- to give you the honest truth.
Today, I am starting with Itasca County, Minnesota, the home of Grand Rapids, Marcell, Bigfork, Coleraine, Deer River, and a few other hamlets. It is also the early home of Judy Garland, who moved away for bigger and better things before she could spend much time out on the lakes. It is a water-filled area where the Mississippi River winds through, and boasts 1007 lakes within its boundaries, according to Mary Shideler -- The Kayak Lady -- who has paddled all of them as of this year, an odyssey she began in 1996.
When you use multiple listing data to look at sales in defined areas, you are always going to have some overlap between various counties. So even though most of these properties are in Itasca County itself, some will be in Koochiching, St. Louis, Cass, and perhaps a couple others that border it. But for the most part, the idea of comparing apples to apples in terms of sales from year to year will remain true.
So here we go. As of today, September 13, 2010, here are the market statistics, broken down into residential waterfront properties and waterfront lots, separately:
Residential Properties
Active on Market
397
Average Price
$317,309
Average Days on Market
209
Solds 1/01/10 - 9/13/10
74
Average List Price
$247,187
Average Sold Price
$226,222
Average Days on Market
236
Solds 1/01/09 - 9/13/09
65
Average List Price
$249,673
Average Sold Price
$226,666
Average Days on Market
220
Lots
Active on Market
323
Average Price
$153,218
Average Days on Market
272
Solds 1/01/10 - 9/13/10
26
Average List Price
$119,675
Average Sold Price
$105,788
Average Days on Market
274
Solds 1/01/09 - 9/13/09
18
Average List Price
$127,216
Average Sold Price
$108,888
Average Days on Market
347
So how does this look overall? We have been having a fairly steady drop in prices for several years, and this year -- although not great -- prices seem to be holding over last year. That should signal the bottom of the dip for Itasca County waterfront properties, so now we just have to wait and see how fast the rebound occurs. Most likely, it will start bringing some people back into the market that were worried about further drops, but it will still be a long process to bring things back close to where they were.
Watch for breakdowns on other counties around the state, as we try to get a handle on where this market is going next.
Wednesday, May 5, 2010
What's That Ringing I Hear?
Walking around the office during the past week, there was this ongoing, unfamiliar sound -- or at least one that I hadn't heard for some time. Then I realized it was the telephones, which during the past couple of years I was thinking of putting on Ebay due to lack of use.
In addition, there were smiles on the agents' faces...almost like it was the Christmas season. But I looked out the window and saw that there was no snow, so I figured maybe it was just some kind of weird dream.
What a change from a year ago! No more negative real estate articles in the newspapers, lots of calls for showings on listings, and quite a few sales coming across my desk to review. I believe this market may actually have some legs.
From other reports around the state -- and across the country -- activity seems to be up in general. Even after the tax credit went away last week, the momentum seems to be getting stronger instead of fizzling out. And even on higher priced lake properties, a fair amount of transactions are taking place.
Time will tell if this is real or imagined. But there is no doubt that agents are getting a lot of buyers coming back into the market after sitting on the sidelines for a year or two. Many of our agents have more than a hundred buyers, each, who are again returning emails and calls after taking a hiatus. And quite a few of them are feeling a little more urgency, since it looks like prices may be turning back up again...instead of going the other way. The combination of substantial drops in prices and low interest rates -- plus the pent up demand of buyers who have been waiting it out -- may be the ticket to even a faster turnaround than was predicted.
We probably don't want to "count our chickens" -- unless we're really bored -- but, personally, this feels more like the real estate business I remember way back when. I'm just not sure I'll be able to handle all this exuberation day after day...or all the noise!
In addition, there were smiles on the agents' faces...almost like it was the Christmas season. But I looked out the window and saw that there was no snow, so I figured maybe it was just some kind of weird dream.
What a change from a year ago! No more negative real estate articles in the newspapers, lots of calls for showings on listings, and quite a few sales coming across my desk to review. I believe this market may actually have some legs.
From other reports around the state -- and across the country -- activity seems to be up in general. Even after the tax credit went away last week, the momentum seems to be getting stronger instead of fizzling out. And even on higher priced lake properties, a fair amount of transactions are taking place.
Time will tell if this is real or imagined. But there is no doubt that agents are getting a lot of buyers coming back into the market after sitting on the sidelines for a year or two. Many of our agents have more than a hundred buyers, each, who are again returning emails and calls after taking a hiatus. And quite a few of them are feeling a little more urgency, since it looks like prices may be turning back up again...instead of going the other way. The combination of substantial drops in prices and low interest rates -- plus the pent up demand of buyers who have been waiting it out -- may be the ticket to even a faster turnaround than was predicted.
We probably don't want to "count our chickens" -- unless we're really bored -- but, personally, this feels more like the real estate business I remember way back when. I'm just not sure I'll be able to handle all this exuberation day after day...or all the noise!
Sunday, March 21, 2010
A Sign of Life
After several years of nearly nonexistent spring markets -- due to both weather and markets trending in the wrong direction -- it feels like there is a little bit of life out there this year. It isn't a surprise that this awakening is beginning to take place, with a combination of depleted snow, low interest rates, and pent-up demand.
Although there is still a lot of inventory available, it is becoming quite obvious that waterfront properties in good condition and priced accordingly -- especially those with sandy shoreline and attractive settings -- are catching the attention of more buyers earlier than normal. The real benefit to buyers is that, unlike many years, sellers who are serious about selling are not playing the "let's see what we can get" game of pricing their lake places higher for the spring market. With slow sales since 2006, those who want to sell are realizing that they need to be attractive in both condition and price for a successful sale to happen. And with a limited season, you can't wait until July to bring the price down...or it is just too late!
The one thing that I've really noticed is how much of a divide there currently is in good lake properties over the not-so-good ones. There is always a lot of junk on the market in any type of real estate, but now, more than ever, those ugly ducklings really stand out. And typically, those are the ones that seem most unrealistic in their pricing.
So if you have been holding off for a couple years while the market has been declining, I think it has finally declined. There are some extraordinary deals out there, both in properties that have dropped in price during the last year, and in some of the ones that are just coming on the market.
Prices generally begin to jump up along with buyer activity. So if you want the best deal, just beat the rest of them to the "closing" table! And with a possible early ice-out, you just might get an entire season of enjoyment at the lake.
Although there is still a lot of inventory available, it is becoming quite obvious that waterfront properties in good condition and priced accordingly -- especially those with sandy shoreline and attractive settings -- are catching the attention of more buyers earlier than normal. The real benefit to buyers is that, unlike many years, sellers who are serious about selling are not playing the "let's see what we can get" game of pricing their lake places higher for the spring market. With slow sales since 2006, those who want to sell are realizing that they need to be attractive in both condition and price for a successful sale to happen. And with a limited season, you can't wait until July to bring the price down...or it is just too late!
The one thing that I've really noticed is how much of a divide there currently is in good lake properties over the not-so-good ones. There is always a lot of junk on the market in any type of real estate, but now, more than ever, those ugly ducklings really stand out. And typically, those are the ones that seem most unrealistic in their pricing.
So if you have been holding off for a couple years while the market has been declining, I think it has finally declined. There are some extraordinary deals out there, both in properties that have dropped in price during the last year, and in some of the ones that are just coming on the market.
Prices generally begin to jump up along with buyer activity. So if you want the best deal, just beat the rest of them to the "closing" table! And with a possible early ice-out, you just might get an entire season of enjoyment at the lake.
Tuesday, February 9, 2010
Waterfront Rentals...for the Entire Summer!
In past years, finding a lake place to rent for the summer season in Minnesota or Wisconsin was somewhat challenging. There were plenty of lakefront homes at affordable rental rates during the off months, but most everyone up north buys on the water to enjoy it in its liquid form. So unless the property was purchased with the intent of it being a rental in the first place -- and generally at higher weekly or nightly rates -- finding one of these for the best three months of the year was quite difficult!
Recently, however, things may have changed somewhat. The real estate downturn made it difficult for some potential sellers to move on with their lives during the last few years, and some of them have turned to renting until the lakeshore market picks up again. However, most are not interested in only renting for a few months, since it is quite a bit more difficult to find good renters in the off-season. And obviously, the going price is quite a bit lower. But if you are willing to sign a year-long lease, you may be able to find some reasonable deals on the northern waters. At least for a while!
One thing they say about real estate is that the market softens slowly (think of the steady downward trend over the last few years), but it comes back quickly. Most real estate gurus are now predicting that it is now ready for its accent back up...and that may happen fairly fast! Most indicators are now showing widespread signs of this taking place, from vastly increased web traffic on real estate sites, to greater activity at open houses. And when buyers start seeing others jumping back in, it tends to start a feeding frenzy for fear of missing out.
At this point in time, you may still find some of these lakeshore homes and cabins available to rent until the sellers get a good sense that a rebound is taking place. After that, many of them are going to want to move those properties as soon as possible. But you should also remember that if you are caught in a lease for the next year, and your real intent is to buy a lake place, you may miss out on getting in before the prices head back up.
By the way, we do get a lot of requests from lake buyers who ask about possible rentals. Right now we have people looking on Rainy Lake and Mille Lacs for these types of long term rentals. If you have a lake property you are considering renting out, please let us know and we will pass it on to these prospects.
Recently, however, things may have changed somewhat. The real estate downturn made it difficult for some potential sellers to move on with their lives during the last few years, and some of them have turned to renting until the lakeshore market picks up again. However, most are not interested in only renting for a few months, since it is quite a bit more difficult to find good renters in the off-season. And obviously, the going price is quite a bit lower. But if you are willing to sign a year-long lease, you may be able to find some reasonable deals on the northern waters. At least for a while!
One thing they say about real estate is that the market softens slowly (think of the steady downward trend over the last few years), but it comes back quickly. Most real estate gurus are now predicting that it is now ready for its accent back up...and that may happen fairly fast! Most indicators are now showing widespread signs of this taking place, from vastly increased web traffic on real estate sites, to greater activity at open houses. And when buyers start seeing others jumping back in, it tends to start a feeding frenzy for fear of missing out.
At this point in time, you may still find some of these lakeshore homes and cabins available to rent until the sellers get a good sense that a rebound is taking place. After that, many of them are going to want to move those properties as soon as possible. But you should also remember that if you are caught in a lease for the next year, and your real intent is to buy a lake place, you may miss out on getting in before the prices head back up.
By the way, we do get a lot of requests from lake buyers who ask about possible rentals. Right now we have people looking on Rainy Lake and Mille Lacs for these types of long term rentals. If you have a lake property you are considering renting out, please let us know and we will pass it on to these prospects.
Friday, January 8, 2010
A Glance at 2010
With another year behind us, it's always interesting to guess what the coming year holds. If we aren't beaten down enough from several years of falling real estate prices, we can always turn on the History Channel to find out just when the world is going to end so that we can formulate a plan to have just enough savings to hold us over until then. Soon, I'm sure they'll have the number of days left right on the TV -- just like in the Iran Hostage Crisis (only in reverse order) -- so that we won't have to add them all up on our own.
But then again, what if they're wrong? Then what? We'll wake up the next day only to find out we're broke...and now how are we going to buy that lake place we were thinking of a few years back?
Yes, it's all this constant guessing that keeps life interesting. So I'll make a couple guesses myself.
I'm guessing that the people who bought lake properties last year were pretty smart, because they probably bought at about the bottom of the dip.
I'm guessing that the market isn't going to jump up real fast, but I do think it has begun to turn around.
I'm guessing that there will be a bunch more smart buyers who pick up some really good lake properties at very low prices early this year.
I'm guessing that the stock market will go up, then it will go down, then it will go up, then it will go down again...and so forth.
I'm guessing that it is pretty hard to get more than about 3% interest on a cd these days. And they aren't all that fun to play with.
I'm guessing that if you buy a lake place this year, you will get a lot more enjoyment using it than you will with your cd. And I think it will bring you a better return over time as well.
Oh yeah...one more guess: I'm guessing that you and your cabin will still be around in 2013, as long as you stay in good health and don't get run over by a bus or anything like that.
But then again, what if they're wrong? Then what? We'll wake up the next day only to find out we're broke...and now how are we going to buy that lake place we were thinking of a few years back?
Yes, it's all this constant guessing that keeps life interesting. So I'll make a couple guesses myself.
I'm guessing that the people who bought lake properties last year were pretty smart, because they probably bought at about the bottom of the dip.
I'm guessing that the market isn't going to jump up real fast, but I do think it has begun to turn around.
I'm guessing that there will be a bunch more smart buyers who pick up some really good lake properties at very low prices early this year.
I'm guessing that the stock market will go up, then it will go down, then it will go up, then it will go down again...and so forth.
I'm guessing that it is pretty hard to get more than about 3% interest on a cd these days. And they aren't all that fun to play with.
I'm guessing that if you buy a lake place this year, you will get a lot more enjoyment using it than you will with your cd. And I think it will bring you a better return over time as well.
Oh yeah...one more guess: I'm guessing that you and your cabin will still be around in 2013, as long as you stay in good health and don't get run over by a bus or anything like that.
Thursday, November 19, 2009
Better Late than Never
Sorry about the long delay since my last post. October was such a dreary, rainy, cool month up north that I just didn't have it in me to write an uplifting column, and these days I try to stay away from writing negative ones. On top of that, turning the clock back an hour only added to the misery. And when you feel like going to bed at 6:00 because it has already been dark for awhile, that really cuts down on production.
But the worst of the ugliness is almost over. Soon the snow will be falling and give reason to be outside shoveling or plowing, and a good blanket of white stuff seems to brighten everything up for a little while. At least until we get sick of it in early February, and long for ugliness again until the greenery of May...or June!
But you are probably more interested in real estate than weather reports if you have tuned into this website. So here is my report -- and prediction -- for this year and next:
As I said earlier this year, the bottom hit a while back. That doesn't mean that everything popped up in price, or that there was a huge increase in lakeshore buyers all of a sudden. Things like that take some time, but I think that the momentum is picking up even now during this typically slow time of year.
From all the agents I've talked to across Minnesota and Wisconsin, they all seem the believe the last half of 2009 was a whole lot stronger than the first half. We are still seeing a good number of buyers calling to look at lake properties even as December looms, and that is not the typical waterfront real estate climate for this time of year. Normally, most of the phone calls during these later months are from a contingent of well trained and hard-skinned inquisitors who ask how much the seller will take before any questions relating to the property itself.
I think the momentum will continue and increase throughout 2010. There is no doubt that people are still losing jobs, but others seem to be finding them. It could be we are just in a "cleaning out" phase of certain industries; others may be starting to show an upswing.
With the incredibly low interest rates, huge corrections in prices, and investments sitting under mattresses or in cds not doing all that well, real estate -- and especially waterfront real estate -- may be the next big thing. And besides the great value, it may just add a little pleasure to your life.
Of course, you could pick up a gold bar for a mere $445,000 that also might go up in price. They are quite a bit easier to maintain, but I heard they are really hard to ride on behind the boat.
But the worst of the ugliness is almost over. Soon the snow will be falling and give reason to be outside shoveling or plowing, and a good blanket of white stuff seems to brighten everything up for a little while. At least until we get sick of it in early February, and long for ugliness again until the greenery of May...or June!
But you are probably more interested in real estate than weather reports if you have tuned into this website. So here is my report -- and prediction -- for this year and next:
As I said earlier this year, the bottom hit a while back. That doesn't mean that everything popped up in price, or that there was a huge increase in lakeshore buyers all of a sudden. Things like that take some time, but I think that the momentum is picking up even now during this typically slow time of year.
From all the agents I've talked to across Minnesota and Wisconsin, they all seem the believe the last half of 2009 was a whole lot stronger than the first half. We are still seeing a good number of buyers calling to look at lake properties even as December looms, and that is not the typical waterfront real estate climate for this time of year. Normally, most of the phone calls during these later months are from a contingent of well trained and hard-skinned inquisitors who ask how much the seller will take before any questions relating to the property itself.
I think the momentum will continue and increase throughout 2010. There is no doubt that people are still losing jobs, but others seem to be finding them. It could be we are just in a "cleaning out" phase of certain industries; others may be starting to show an upswing.
With the incredibly low interest rates, huge corrections in prices, and investments sitting under mattresses or in cds not doing all that well, real estate -- and especially waterfront real estate -- may be the next big thing. And besides the great value, it may just add a little pleasure to your life.
Of course, you could pick up a gold bar for a mere $445,000 that also might go up in price. They are quite a bit easier to maintain, but I heard they are really hard to ride on behind the boat.
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