Pete Rondello Sr

The March real estate market has “come in like a lamb” … with few inquiries and offers. This week, Team Rondello will attend and exhibit at the Milwaukee Journal / Sentinel Sport Show at State Fair Park in Milwaukee. It will be very interesting (and telling) to see the overall activity and turnout for this event; to measure the interest in real estate by the number of attendees who visit our booth, and also to hear their comments. We remain hopeful that some of the new administrations policies will “trickle up” to help real estate sellers and buyers here in the North. The 1^st time buyer tax credit will have a minor effect, as most homes here are secondary recreational properties. As I write this, the temperature is well below zero; a warming trend is forecast for late in the week, and this warmer weather should start getting folks thinking of spring, summer, and fun on the lakes. We are working each day to serve our clients and reach the most available customers.

An extended spate of below zero weather is finally coming to an end. Wind chill values have been as low as -50F during the last half of January, and at the start of this month. Market activity is sluggish and frustrating. The phones are quiet; Internet traffic has slowed, and walk-in inquiries have all but stopped. Those buyers who are looking and making offers are finding that getting a mortgage may be a long-term project, with some lenders now asking for 60 – 75 days for a commitment letter. The game has changed considerably from the “boom days” of three years ago. Even in comparison to 2008 sales figures, 2009 is starting off at a -60% pace relative to closed sales, with only 83 properties closed in the entire MLS last month. Team Rondello had two of those, which puts us ahead of most. In a month, we’ll be exhibiting at the Milwaukee Journal / Sentinel Sport Show, a traditional venue for spring and summer buyers. It will be most interesting to see how the show traffic compares to other years.

I was driving along the other day ... and I was thinking about how the whole real estate business seems like a Tilt-A-Whirl ride. At least up here in the Northwoods of Wisconsin.

Thankfully, there is SOME business to be had for those who are working it hard. But nowhere near like it used to be.

Remember when the ride was going "Full TILT", and the bright red cars were spinning around, and we were waving to each other and laughing? It was so much fun that our tummies even tickled. We'd hold the bar, and hope for a really long and fast spin, while the music played and the lights were bright, and we could smell cotton candy in the air.

There were lots of people on the ride, and even more wanted to get on. People waved from the railing to us, and we could see our friends on the Ferris Wheel too, as they rode up-up-up to the top! Whee!!!

But then that guy in the grease-stained t shirt with the pack of smokes in his top pocket started to pull back on that big lever that goes right through the floor of the ride, and the platform began to slow down.

We didn't notice at first, because we were still spinning pretty hard, and our tummy was more tickled than ever! We started to lean into the corners of the round caged car to get a little more spin.

Back went the lever even more ...

And we could start to feel things really going slower now. "No! Not yet! One more ride!" we yelled to the t-shirt man.

Now, the lever is all the way back. The leather strap is holding it in place, and the old tractor motor is idling off to the side of the blue platform. The squeal of the brakes can be heard, and our car has frozen in place. The platform is no longer undulating and turning, and the red cars have stopped. We have to get off the ride.

Up goes the bar, and we step across the shiny round tracks to the exit, taking one last look at the man with the greasy shirt.

"You can go again", he says ... "but you have to buy another ticket, and wait your turn. The motor got pretty hot from the last ride, so I have to slow 'er down a bit this go 'round. In fact, I gotta take a break. The ride'll start up in a bit after she cools off some".

I'm off to see the lady in the ticket booth. Hope I have enough money left to get a ticket for the next ride. Wanna join me?

The after-holiday surge that we’re used to experiencing has started; albeit not to the level of years past, but we HAVE seen some positive activity in the market since the 1^st of the year. Last week, Team Rondello conducted four showings and received two offers. One for a vacant acreage parcel and one for a commercial property. In both cases, the offers were well below asking price, and in both cases, the offers have failed to be accepted. Sellers are holding relatively firm to their asking prices, and the buyers we’re seeing are taking full advantage of the buyer’s market and trying ANY offer on ANY property. In some cases, they are successful. We are seeing more foreclosure properties entering the inventory stream, including several lakefront recreational homes, which is a change from 2008. We’ll see how these affect prices of that overall market segment, which has held values best of all during the current trend.

We’re preparing for metro-area sport shows, redesigning web sites, and tweaking marketing plans to adjust to this scenario, and remain positive that good things are ahead in 2009.

Happy 2009!

We’re eager to begin a new year, and a new marketing season for our properties.

In 2009, we will attend the Milwaukee Sports Show, and roll out several new lake-specific web sites, all designed to bring more traffic and buyers to our listed properties.

We’ll continue to optimize our Team web site, and add new links to already successful referral sites, Chambers of Commerce, industry forums and blogs, and social networks. This will generate more views and enthusiasm for our client’s properties, and great exposure for us.

Our firm will publish new “Hot Sheets” which feature newer listings, and distribute those to our Buyer’s Guide pick-up points located throughout the Northwoods. These will augment our full-color “Northwoods Lifestyle” magazine, which is printed three times per year.

Particular categories of our listings will benefit from paid internet ad space on successful web sites like www.lakehouse.com, www.bizbuysell.com, www.loopnet, www.costar.com, www.realtor.com, www.zillow.com, www.trulia.ocm, and several others. For some properties, we will obtain and market a domain name and unique web site for just that offering!

It’s no secret that 2008 was a challenging year for real estate sales, not only nationwide, but certainly in our area. Those who did sell their property in this past year were among very few that were able to accomplish this. Financing, inventory, the economy, the election, jobs, and many other factors contributed to a tough market. Here are the 2008 statistics for Vilas and Oneida Counties:

Vilas Oneida

Waterfront Home sales,

Units: 2008 / 2007 103/225 138/190 Average price: -5.3%

Vilas Oneida

Off-water Home sales,

Units: 2008 / 2007 129/169 261/311 Average price: -14%

Lots and Acreage

Units: 2008 / 2007 167/254 192/374 Average price: +6.6%

Northern Wisconsin MLS figures, effective 1/2/2009

Values have held nicely given the loss of market demand!

The Northwoods has had a slower recovery than the rest of the state, due in part to the nature of our customers; they must use discretionary or “extra” funds to make recreational purchases. Some areas of Wisconsin are seeing a faster turn-around in the market, but these places are largely areas of primary homes. Our time is coming!

In 2009, we look for lowering mortgage rates, stabilizing economic trends, a more positive attitude among the recreational property buyers, and a strong inventory to appeal to our customers.

We will continue to implement new marketing tools and work with proven techniques to maximize results for our clients. Team Rondello is in it “for the long haul” and is prepared to go the distance to bring positive results.

Best wishes for the New Year!

Please visit our web site at any time:

www.TeamRondello.com