Pete Rondello Sr

Sales statistics from the Greater Northwoods MLS through the month of June, 2009 showed 43 waterfront homes sold since the 1st of January of this year for Oneida County, and 44 for Vilas County. For the same period in 2005, (one of the peak years of real estate activity in the state), there were 119 sold in Oneida County, and 114 in Vilas. These are the two counties we serve, and we keep track of activity in the market here. We thought you’d like to know the latest statistics.

Average sale prices have dropped from the low 400ks to $328,738.00 in Oneida County, and $366,847.00 in Vilas.

While activity has been slowly improving over the last 10 weeks, there is still a large inventory of unsold property, which is causing extended marketing times, reduced supply-vs.-demand values in many sectors of the market, regular reductions of asking prices by sellers, and “low ball” offers from those buyers who have re-entered the market.

Still to be sold: 670 waterfront homes in Oneida County, and 716 in Vilas County.

We expect a continued slow and steady strengthening of sales, but also expect the market recovery—”rebound” in sold units, median sale price, and property values—to be one of a protracted time frame.

Enjoy the SUMMER! - Team Rondello

Sales statistics for the Greater Northwoods MLS showed 40 waterfront homes sold in Oneida County in 2009, through June 15^th. For that same period in 2005, (one of the peak years of real estate activity in the state), there were 119 sold. The average sale price in 2009 is $328,738.00. There are 670 active waterfront residential listings on the market today in Oneida County.

Vilas County sales for the same period: 48 waterfront homes sold in 2009. (114 in 2005) The average sale price in 2009 is $366,847.00. There are 716 active waterfront residential listing on the market today in Vilas County.

While activity has been slowly getting stronger in the past two months, there is still a large inventory of unsold property, which is causing extended marketing times, reduced supply-vs-demand values in many sectors of the market, regular reduction of asking prices by sellers, and “low ball” offers from those buyers who have re-entered the market.

We expect a continued slow and steady strengthening of sales in the two counties we serve, but also expect the market recovery - “rebound” in sold units, median sale price, and property values - to be one of a protracted time frame.

Happy 4th of July!

Waterfront homes make up the bread-and-butter of our market here in the vacationland of Northern Wisconsin. To date, the sale of these homes has not warmed up; in fact, closed sales continue to slip from previous lows. We do have some indication of an increase in buyer traffic and new offers, but the statistics shown here represent the results of the past six months, a very slow time in this market.

Closed sales of residential waterfront homes for the past 6 months, being December 1st, 2008 through May 31st, 2009:

Vilas County: 31 units, with 27 of those under $500,000.00

Oneida County: 30 units, with 22 of those under $300,000.00

Average sale prices in Vilas county used to be in the low $400K's. This latest trending towards fewer and cheaper lake homes is indicative of the bargain hunting that is pervasive in the market.

There are 637 waterfront homes for sale as of this writing in Vilas County, and 605 in Oneida County. We need to see a much more aggressive position in the market to move this large inventory.

And, how was YOUR week?

In my last posts, I mentioned that I thought the bottom had just passed us by. At least here in Northern WI. The way things have been going the past 2 - 3 weeks, that seems to be reality. At least, I'm hoping this isn't a short ride with a NEW bottom.

The phone has been ringing pretty steadily; I have several nice new listings; several buyer appointments for the next few weeks, and this morning, two nice offers came in on my listed properties. Just like May used to be. Well, almost ... but better than 2008 for sure.

It does seem like a localized situation, however, as many of my comrades are still saying that they are getting NO new business.

That's OK. I will be moving forward with positive energy, as always, and focusing on red carpet service for my clients and customers, and looking forward to the continuing upward swing of the "property pendulum".

Vilas County Register of Deeds office has just released April 2009 records for real estate sales in the county. For this past month, the number of transactions is down -21% from the same month in 2008. Transfer tax is down -32% for the same period. That reduced transfer tax means that the properties that are selling are lower-priced properties compared with 2008. No surprise there.

The decline in transaction numbers is not unexpected; these would be the closings from offers written in January - March, which was the slowest period that I can recall in the nearly 20 years I've enjoyed selling property in Northern Wisconsin.

Since early April, we have seen a noticeable increase in the buyer traffic to our firm, and especially our team. We have written 6 offers in as many weeks, and have gotten all but one accepted. These closing will occur in May, June, and beyond, and I expect to see that we have passed "THE BOTTOM" as the figures for the next months are released.

Mortgage amounts are UP +20% from last year; due entirely to refinancing by those who are keeping their properties, but taking advantage of some once-in-a-lifetime interest rates. As of this writing, these rates are beginning to "tick upward"; we did see a low of 4.5% offered on 15 year fixed rate mortgages last month in this market.

The re-fi boom is costing us appraiser time and lender focus. Our only quagmire at this time is getting purchase mortgages through the pipeline. In most cases, we are working on a 60 - day window; in extreme government-backed situations, it is taking several MONTHS to get to closing.