My last blog post focused on some of the issues we are facing in our current real estate market. This year it seems that many of our incoming calls are asking about short sales, foreclosures, and overall "good deals." And after talking to other waterfront agents around the country, I found this was not an anomaly, but quite common in their real estate markets as well.
But while it is a great time for financially strong buyers to purchase lake properties -- or any home -- it is a very difficult time for those who need to sell. And although lakeshore owners were somewhat insulated from these problems not too long ago, it is now spreading to higher-priced homes and lakeshore properties along with all others.
With that in mind, I wanted to do a much better job for both lakeshore buyers and sellers by getting my CDPE designation (Certified Distressed Property Expert), and launching Lakeshort.com. The site provides a vast amount of information relating to these complicated situations for sellers in financial stress, and some guidance to help in the day to day decisions that tend to become overwhelming during these difficult days.
The CDPE designation gives agents an in depth knowledge of the many issues relating to our current real estate market, and a thorough understanding of how to work with banks to achieve a much higher success rate in these transactions. In fact, although the national average for getting a short sale put together and closed is only 24%, CDPEs are successful 80-90% of the time due to their training. And when sellers don't have a lot of time on their side, it is critically important to get it right the first time around!
Whether you have questions about buying or selling distressed properties, I hope that my specialized knowledge in waterfront real estate will provide a better basis for me to assist you with your needs.
Dan Anderson
Broker / CDPE
Monday, October 25, 2010
Tuesday, October 19, 2010
Distressed Lake Properties
Each day we are bombarded by news from a wide array of sources, so certain stories seem to come at us over and over -- on television, the newspaper, radio, or the Internet. One of the hottest stories today is focused on distressed real estate, and the growing number of foreclosures and short sales. Most likely, that is going to be a big story for some time yet.
Lakefront foreclosures and short sales have been a little slower in coming because many owners have still been able to afford them, but even that is changing as a large number of professionals and small business owners have been affected by job loss or lack of business. That trend will certainly bring many more waterfront properties to the market that look like great values, but just be careful to think about your main reasons for purchasing on water before you jump in. And be aware that there are also a lot of very good values on the market that are not distressed, so keep an eye open for all the available properties that fit your needs.
Not too many years ago we saw prices escalating at such a high level that most people felt the waterfront market would get away from them if they didn't find something quickly. Nearly any lakeshore property was attractive to someone, no matter the type of lake or shoreline. Even novice developers could make a quick buck by purchasing chunks of land on some of the most marginal lakes, and then turning them it into somewhat affordable lake lots. People obviously weren't thinking clearly!
Throughout my time in the waterfront real estate business, I have always done my best to help my clients find lake properties that had the best chance of appreciation, based on the wish lists of thousands of buyers I had worked with over the years. If 80% of the buyers want clean lakes with full recreational opportunities, along with fairly level lots and hard-bottom shoreline, then it only makes sense that those types of properties should have the best staying power when it comes to value. Unfortunately for sellers, because of the economic downfall we've happened upon, even those lake homes and cabins have had heavy hits on their prices, and there are incredible values available on those types of properties as well.
But in time things will turn around. And when prices begin to inch upward again, it will still be the lakeshore real estate with the most highly desireable characteristics that attract the greatest numbers of buyers. If we still believe in supply and demand, it only makes sense that the prices on those properties will shoot up the fastest when that market re-entry begins.
So during this time of foreclosures, short sales and overall real estate prices at some of the best levels in many years, make sure you think about that as you go about your search. Perhaps a lot of the most distressed lake properties today started off looking like bargains several years ago, but they may also be the ones that have a hard time gaining much value in the future.
Lakefront foreclosures and short sales have been a little slower in coming because many owners have still been able to afford them, but even that is changing as a large number of professionals and small business owners have been affected by job loss or lack of business. That trend will certainly bring many more waterfront properties to the market that look like great values, but just be careful to think about your main reasons for purchasing on water before you jump in. And be aware that there are also a lot of very good values on the market that are not distressed, so keep an eye open for all the available properties that fit your needs.
Not too many years ago we saw prices escalating at such a high level that most people felt the waterfront market would get away from them if they didn't find something quickly. Nearly any lakeshore property was attractive to someone, no matter the type of lake or shoreline. Even novice developers could make a quick buck by purchasing chunks of land on some of the most marginal lakes, and then turning them it into somewhat affordable lake lots. People obviously weren't thinking clearly!
Throughout my time in the waterfront real estate business, I have always done my best to help my clients find lake properties that had the best chance of appreciation, based on the wish lists of thousands of buyers I had worked with over the years. If 80% of the buyers want clean lakes with full recreational opportunities, along with fairly level lots and hard-bottom shoreline, then it only makes sense that those types of properties should have the best staying power when it comes to value. Unfortunately for sellers, because of the economic downfall we've happened upon, even those lake homes and cabins have had heavy hits on their prices, and there are incredible values available on those types of properties as well.
But in time things will turn around. And when prices begin to inch upward again, it will still be the lakeshore real estate with the most highly desireable characteristics that attract the greatest numbers of buyers. If we still believe in supply and demand, it only makes sense that the prices on those properties will shoot up the fastest when that market re-entry begins.
So during this time of foreclosures, short sales and overall real estate prices at some of the best levels in many years, make sure you think about that as you go about your search. Perhaps a lot of the most distressed lake properties today started off looking like bargains several years ago, but they may also be the ones that have a hard time gaining much value in the future.
Thursday, October 7, 2010
Lakeshore Buyers - and Sellers - Experiment
In this age of social networking, viral marketing, and unlimited information at our fingertips, it seems we are also drowing in technological clutter, creating a tough time for those of us in the fifty plus range. As much as we know we should keep up with the latest trends in marketing and online interaction, our brains seem to have a steeper learning curve as we pile more things on top of our life-long educations already stored there. But many of us are trying hard to catch on by becoming friends -- with as many people who want us as friends (not our kids of course) -- on Facebook.
In general, people who have spent a good number of years at the "College of Hard Knocks" believed that the expertise they were learning there, in their chosen profession, was enough to carry them through. After all, our parents seemed to do OK with that specialized knowledge during their careers...didn't they? But as one colleague put it, "We seem to have to keep reinventing ourselves continuously now."
The real estate industry is a prime example of this. It seems that most real estate agents and brokers have now been left in a vast quagmire of uncertainty, not knowing how to find qualified buyers for their listings. The days of sitting in the local real estate office waiting for walk-ins or sign calls are long gone. And if you can't stick a big, bright stop sign out on the information highway -- or at least a yellow flashing light -- most buyers are going to zip right past you.
We at Lakehomes.com Realty are no different than the rest. Although we have been fortunate enough to have a specialized niche that many others don't, and a very strong Internet presence for many years, we also have to change with the times...or the times will change us. Even with more than two decades experience as waterfront specialists ourselves, many highly skilled agents in our company, and some of the largest waterfront websites online, we still have to keep our business fresh by exploring new marketing ideas.
With the the vast amount of information available out there, I'm sure that a lot of waterfront buyers might stop by our website for a cup of coffee, only to go get their donut at another website -- or maybe four or five donuts on multiple sites, until they become confused as to where the best bakery is. And I'm sure the same thing happens to us in reverse, just because no one wants to take a chance on missing out on the "best donuts" available.
I do the same thing when I'm shopping for products online, because it is just TOO easy! But then I realize I just wasted two hours, and maybe saved seven dollars...before shipping. That's about when I wish there was someone online with a stop sign and a road map that had sent me to that best deal without all that surfing -- or told me that they were all pretty good deals. Kind of a whack on the side of the head to wake me up a bit and remind me how valuable my time is!
Like all real estate brokers, we'd like to think we have both the best coffee and the best donuts, and that waterfront buyers and sellers will know that once they get to our site, avoiding more taste tests further on down the virtual highway. But sometimes we may just have to work on our recipe a little to make sure.
Besides Lakehomes.com, we own multiple other waterfont websites like LakehomesUSA.com, and we have incredible abilities to get the word out to tens of thousands of water-related buyers and sellers with the touch of a button. As we look at how Facebook, Twitter and other social networking sites have changed how people communicate and do business, even those of us who have been a little slower to embrace these new methods of immediate interaction need to get on the bandwagon.
So here is my experiment that anyone who wants to can take part in...buyers or sellers. And please let me know if you think this is a good or bad recipe so I can change the ingredients if necessary. You can even let us know if you like the idea on our new Lakehomes.com Facebook Page, or just leave a comment on this blog.
We want to give you a personal roadmap based on your needs. As a waterfront buyer, you most likely have a wish list that combines many factors, including size of home or cabin, price range, lot size, lake quality and size, and many other features you might not have even thought about yet. As a seller, you know the best qualities of your propery better than anyone, and why someone else would want those same things. And some of you sellers get a little ticked off when real estate agents don't try to get those points across to potential buyers. We think it's time to try a little harder to match the right buyers and sellers...beyond just doing the same old thing.
With up to 50,000 views or more each day on Lakehomes.com -- and many more than that on LakehomesUSA -- there is no doubt that we attract a lot of highly targeted buyers in search of just the right waterfront home, cabin or lot. The problem is, if you're one of those buyers, no one really knows about you or how to help you the best (although some of you want it that way). But when you think about it, you're driving all over this virtual highway wasting gas and countless hours of your time, when you could have someone giving you a highly detailed road map to point out a much more exact destination.
I can't even begin to tell you how many lake homes that buyers choose to look at from the Internet that are entirely disappointments once they get there. Most buyers don't realize that Realtors have much more detailed information available on the actual MLS than what is displayed publicly, so they can generally knock out a lot of marginal properties rather quickly. And it always seems like the photos look a little better online than the property does in real life...with that bright blue house only 25 feet away. I wonder why the camera didn't pick that up?
So we think it's a great time to see how powerful this whole networking thing has become, by not only creatively advertising listings -- but advertising the buyers' needs as well. You could probably try to do the same thing yourself, but I think the real strength is in the combination of our highly targeted sites combined with this new wave of exponential communication growth.
Even though marketing has gotten much more complicated in how you go about it, the basic premise hasn't changed. It is still a matter of exposing your product to the most qualified prospects. And whether you are a potential waterfront buyer or seller, those prospects are already on our sites looking for just the right property...or looking at comparable properties in an effort to price theirs accordingly. Why not get to them first, and in a multitude of ways that your competition can't?
If you want to take part in this experiment, as either a buyer or seller, just fill out our contact form and let us know your needs so that we can create your personal roadmap. And since everyone's situation will require a different recipe for success, the more ingredients you can provide, the better.
Like any good experiment, it is important to publish the results. Please stay tuned on Facebook for those updates.
In general, people who have spent a good number of years at the "College of Hard Knocks" believed that the expertise they were learning there, in their chosen profession, was enough to carry them through. After all, our parents seemed to do OK with that specialized knowledge during their careers...didn't they? But as one colleague put it, "We seem to have to keep reinventing ourselves continuously now."
The real estate industry is a prime example of this. It seems that most real estate agents and brokers have now been left in a vast quagmire of uncertainty, not knowing how to find qualified buyers for their listings. The days of sitting in the local real estate office waiting for walk-ins or sign calls are long gone. And if you can't stick a big, bright stop sign out on the information highway -- or at least a yellow flashing light -- most buyers are going to zip right past you.
We at Lakehomes.com Realty are no different than the rest. Although we have been fortunate enough to have a specialized niche that many others don't, and a very strong Internet presence for many years, we also have to change with the times...or the times will change us. Even with more than two decades experience as waterfront specialists ourselves, many highly skilled agents in our company, and some of the largest waterfront websites online, we still have to keep our business fresh by exploring new marketing ideas.
With the the vast amount of information available out there, I'm sure that a lot of waterfront buyers might stop by our website for a cup of coffee, only to go get their donut at another website -- or maybe four or five donuts on multiple sites, until they become confused as to where the best bakery is. And I'm sure the same thing happens to us in reverse, just because no one wants to take a chance on missing out on the "best donuts" available.
I do the same thing when I'm shopping for products online, because it is just TOO easy! But then I realize I just wasted two hours, and maybe saved seven dollars...before shipping. That's about when I wish there was someone online with a stop sign and a road map that had sent me to that best deal without all that surfing -- or told me that they were all pretty good deals. Kind of a whack on the side of the head to wake me up a bit and remind me how valuable my time is!
Like all real estate brokers, we'd like to think we have both the best coffee and the best donuts, and that waterfront buyers and sellers will know that once they get to our site, avoiding more taste tests further on down the virtual highway. But sometimes we may just have to work on our recipe a little to make sure.
Besides Lakehomes.com, we own multiple other waterfont websites like LakehomesUSA.com, and we have incredible abilities to get the word out to tens of thousands of water-related buyers and sellers with the touch of a button. As we look at how Facebook, Twitter and other social networking sites have changed how people communicate and do business, even those of us who have been a little slower to embrace these new methods of immediate interaction need to get on the bandwagon.
So here is my experiment that anyone who wants to can take part in...buyers or sellers. And please let me know if you think this is a good or bad recipe so I can change the ingredients if necessary. You can even let us know if you like the idea on our new Lakehomes.com Facebook Page, or just leave a comment on this blog.
We want to give you a personal roadmap based on your needs. As a waterfront buyer, you most likely have a wish list that combines many factors, including size of home or cabin, price range, lot size, lake quality and size, and many other features you might not have even thought about yet. As a seller, you know the best qualities of your propery better than anyone, and why someone else would want those same things. And some of you sellers get a little ticked off when real estate agents don't try to get those points across to potential buyers. We think it's time to try a little harder to match the right buyers and sellers...beyond just doing the same old thing.
With up to 50,000 views or more each day on Lakehomes.com -- and many more than that on LakehomesUSA -- there is no doubt that we attract a lot of highly targeted buyers in search of just the right waterfront home, cabin or lot. The problem is, if you're one of those buyers, no one really knows about you or how to help you the best (although some of you want it that way). But when you think about it, you're driving all over this virtual highway wasting gas and countless hours of your time, when you could have someone giving you a highly detailed road map to point out a much more exact destination.
I can't even begin to tell you how many lake homes that buyers choose to look at from the Internet that are entirely disappointments once they get there. Most buyers don't realize that Realtors have much more detailed information available on the actual MLS than what is displayed publicly, so they can generally knock out a lot of marginal properties rather quickly. And it always seems like the photos look a little better online than the property does in real life...with that bright blue house only 25 feet away. I wonder why the camera didn't pick that up?
So we think it's a great time to see how powerful this whole networking thing has become, by not only creatively advertising listings -- but advertising the buyers' needs as well. You could probably try to do the same thing yourself, but I think the real strength is in the combination of our highly targeted sites combined with this new wave of exponential communication growth.
Even though marketing has gotten much more complicated in how you go about it, the basic premise hasn't changed. It is still a matter of exposing your product to the most qualified prospects. And whether you are a potential waterfront buyer or seller, those prospects are already on our sites looking for just the right property...or looking at comparable properties in an effort to price theirs accordingly. Why not get to them first, and in a multitude of ways that your competition can't?
If you want to take part in this experiment, as either a buyer or seller, just fill out our contact form and let us know your needs so that we can create your personal roadmap. And since everyone's situation will require a different recipe for success, the more ingredients you can provide, the better.
Like any good experiment, it is important to publish the results. Please stay tuned on Facebook for those updates.
Thursday, September 16, 2010
Breaking it Down (Part 3) Pine County
Today we'll head over to the other side of the Twin Cities, and north a bit. Pine County, Minnesota is generally in the 1-1.5 hour range north of St. Paul, up Interstate 35. Pine City -- bordered by Cross Lake and Pokegama Lake -- is at the southern end of the county, and Sturgeon Lake, along with it's namesake body of water, is on the north end.
You will find a bit of a crossover in the Duluth MLS in the northern part of the county, so some of the listings will only show up there. But for today's purposes, we will use data from the Northstar MLS from the Twin Cities, which will have most of the county's listings.
Just as we did in Wright County, we are only going to be showing statistics for the residential properties, as there are only 17 lake lots currently on the market, and there were only two of those sales last year. As I mentioned before, there really aren't enough lake lot sales near the metro area to get good figures on these, or ideas of value, so I will only use full stats in outlying areas.
So here is the data for the last three years:
Residential Lakefront Properties
Active on Market
62
Average Price
$269,782
Average (total) Days on Market
301
Solds 1/01/10 - 9/15/10
22
Average List Price
$216,450
Average Sold Price
$204,457
Average (total) Days on Market
174
Solds 1/01/09 - 9/15/09
26
Average List Price
$242,746
Average Sold Price
$223,179
Average (total) Days on Market
249
Solds 1/01/08 - 9/15/08
27
Average List Price
264,526
Average Sold Price
$242,539
Average (total) Days on Market
238
After looking at this data, it seems that the both the average list price and sale price in Pine County has come down signicantly this year, which also may be lowering the average days on the market. Perhaps those prices are getting to a point where buyers are seeing them as good values now and moving on them faster.
We will continue to keep looking around Minnesota and Western Wisconsin in the days to come, in search of the best opportunities in this market.
You will find a bit of a crossover in the Duluth MLS in the northern part of the county, so some of the listings will only show up there. But for today's purposes, we will use data from the Northstar MLS from the Twin Cities, which will have most of the county's listings.
Just as we did in Wright County, we are only going to be showing statistics for the residential properties, as there are only 17 lake lots currently on the market, and there were only two of those sales last year. As I mentioned before, there really aren't enough lake lot sales near the metro area to get good figures on these, or ideas of value, so I will only use full stats in outlying areas.
So here is the data for the last three years:
Residential Lakefront Properties
Active on Market
62
Average Price
$269,782
Average (total) Days on Market
301
Solds 1/01/10 - 9/15/10
22
Average List Price
$216,450
Average Sold Price
$204,457
Average (total) Days on Market
174
Solds 1/01/09 - 9/15/09
26
Average List Price
$242,746
Average Sold Price
$223,179
Average (total) Days on Market
249
Solds 1/01/08 - 9/15/08
27
Average List Price
264,526
Average Sold Price
$242,539
Average (total) Days on Market
238
After looking at this data, it seems that the both the average list price and sale price in Pine County has come down signicantly this year, which also may be lowering the average days on the market. Perhaps those prices are getting to a point where buyers are seeing them as good values now and moving on them faster.
We will continue to keep looking around Minnesota and Western Wisconsin in the days to come, in search of the best opportunities in this market.
Tuesday, September 14, 2010
Breaking it Down (Part 2) Wright County
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.
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.
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!
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