Over the last two years, we’ve been hearing a lot about how the real estate markets in the urban areas of the upper Midwest have really taken off. Prices have risen and inventory is low. We have a daughter who is shopping for a home in Stevens Point right now who is experiencing this condition first-hand! Because of that, we find that people make assumptions about our real estate market and jump to the conclusion that we’re operating in the same kind of market. Our market area, being a recreational property market, behaves much differently and that assumption couldn’t be more wrong.
We just finished analyzing the year-end numbers for 2014 and have not only compared them with 2013, but also have a 19 year history to bring into focus. After sifting through and chewing on the results (Dave is our chief sifter and chewer), we have some conclusions that make us feel pretty good about what’s going on here.
Pricing: The average sale price for properties, whether on or off water, has remained virtually stable for the last two calendar years. For us, this is really good news! Seeing big swings in average pricing, whether it be up or down, creates conditions that may not be the best in the long run. We’re in this for the long haul and want to see stability. It’s a Midwestern thing.
Number of Properties Sold: There was a slight uptick in the number of properties sold, specifically in the waterfront category. It was just enough to make the graph line on the chart look like a smiley face!
Total Dollar Volume Sold: There was a slight uptick in this category as well, as one might assume after knowing more properties sold in 2014 versus 2013.
% of List: The average sold price versus list price for both years, whether it was on water or off water was 94%. How’s that for stable?
We don’t see this changing much for 2015 and look forward to helping our customers and clients reach their goals, with as much ease as possible! If you’re looking to sell, don’t kid yourself that your property value has jumped because of the stories you hear from the traditional housing markets in urban areas. If you’re looking to buy, don’t think that you’re going to secure your dream property with a lowball offer. That’s not the way the ball is bouncing right now! Happy New Year! – Wanda Boldon