Julie Sells Dreams in Wisconsin's beautiful Northwood's: November 2011

Bank Owned/Short Sales and how they affect the Vilas and Oneida WI Real Estate Markets as of 11-16-2011

The BIGGEST question I am asked by Buyer’s is: “How can you help me find that great bank owned purchase?” The biggest question I am asked by Seller’s is: “How are bank owned sales affecting my market niche?”

There is always a lot of interest about foreclosures and short sales especially when it comes to our water front market.  The fact of the matter is that there simply are not that many lake homes that get foreclosed.  The chart above shows non-bank owned vs. bank owned sales for the Northwoods MLS.  The total numbers are this:  Thus far, there have been 975 unit sales in Vilas and Oneida Counties.  Of those, 117 were foreclosures or short sales (12% of the market).  Of those 117, only 25 were on water (2.5%).  Further breaking that number down, only 5 sold for above $250K.  I call this the premium lake home market and these 5 units represent 0.5% of the market.

When I look at the total year of 2010, I saw 1144 total unit sales with 123 bank and short sales (10.7%).  There were 25 units sold in 2010 that were on water (2.1%) and 11 homes sold for above $250K (0.9%).

What does this all mean?  It looks as if the number of foreclosures is increasing as a percentage of sales.  The reality is that the raw number of sales appears to be more of the problem (975 vs. 1144).  We still have 45 days left in CY2011 so we may make up the 169 unit shortfall in unit sales.  The number of foreclosures seems to be rather steady.  We certainly are not seeing a spike up or down in the number of foreclosures and short sales.

If you are looking for a “steal” on water, they do exist.  They simply are not ALWAYS bank owned properties.  There are many sellers out there that are highly motivated and those are the homes that are moving at this time.  This is great news for buyers.  It is not the best of news for sellers.  So, again get your ducks in a row and be prepared to pull the trigger so to speak when something becomes available or is REDUCED into your price range because when they do become available they are often highly sought after:)

Bank Owned/Short Sales and how they affect the Vilas and Oneida WI Real Estate Markets as of 11-16-2011.

Julie Paez - REALTOR -  Coldwell Banker Mulleady REALTORS, October 7, 2011 Market Statistic for Vilas and Oneida Counties in Northern Wisconsin

In a repeat performance to last month’s sales figures; it isn’t terrific but it is a nice trend.  The red line represents the number of homes sold by month in Vilas and Oneida Counties.  In September, there were 90 homes sold in Oneida and Vilas Counties.  In 2010, 93 homes sold and in September of 2009, 78 homes sold.  In August, there were 96 homes sold.  That compares with 94 homes sold in 2010 and 84 homes sold in 2009.  These numbers are not super but the red line is becoming a bit more consistent and I believe we are on track to have a better October than last year.

Another trend we are seeing is the reduced number of listings.  In 2007 and 2008, there really was a lot of inventory.  We sold a lot of homes but the rate at which we sell homes (called the saturation rate) was quite poor.  We still are far from healthy but we appear to be heading in the right direction and Seller’s that really have no motivation to sell are slowly not returning their homes to the market.

What can one do as a Seller in a market so heavily favoring the Buyer? 

• The most obvious is to reduce the asking price.  I know how painful that can be and it is not always the best solution.  I am always telling you that “it’s a price war and a beauty contest and you have to win both”. 
• If you are already priced competitively (I would suggest actually visiting competitive listings) or allowing me to set up a manual search for you so you can actively see your competition and what they are doing with pricing daily. You will get listings like a Buyer does and this really keeps you up to date with the current market. 
• Next, you can consider how you look to the Buyer… or staging.  Staging is something that is commonly done in more urban markets.  It is not very common here at this time but there are people who can help.  Stagers can make suggestions from paint and decorating tips all the way to bringing in pieces of furniture to present your home in the best possible light.  I have taken several staging classes and am always ready to provide additional homework for my SellersJ

Mother Nature has blessed us again with spectacular color.  The fall season never disappoints here in the Northwood’s!  Come up and enjoy th colors in the beautiful northern Wisconsin counties of Vilas and Oneida!

                    The chart below shows Historic Mortgage Rates and Historic recessions and it is a great example of why we should be buying real estate in today's market.    

I said before that these are extraordinary times. This chart shows the bellweather since 1970 and there are several points I would like to make.  

• First I wish to show here is how low the rate is relative to history!  It is under 4% at present!  Why aren’t people buying!  The chart also shows that technically we are not in a recession (gray areas).  The Federal Reserve Economic Data of St. Louis provided the chart and surely they know if we are in a recession or not.

• Second-   It shows the recession of 2008-2009 and the post 9-11 reccession.  It shows the mortgage rate peaks of 1982 that were over 17%.  Those were tough times to be selling real estate.  It also shows the oil embargo induced recession of 1974.

Considering that mortgage money is available and is at historic lows and that there are many motivated sellers out there right now, why are there not more buyers?  Many people are out of work or are underemployed and in no position to be buyers.  However, there are many who are economically sound and who could be making huge potential investment gains by buying real estate at this time.  I truly believe that many buyers are convinced by the never ending negative press that real estate is horrible and why would anyone ever consider purchasing real estate at this time.  Traditional news channels have not been kind to real estate or any type of investment to speak of.  They badger the government because we are running out of Medicare yet offer no real long term investment plan for the average citizen.  This chart and the current state of the real estate market – in my opinion – offer’s a fantastic investment plan: purchase real estate for rental purposes and diversify your portfolio.  Any good account can tell you the tax advantages and any good REALTOR can get you set up on a search for rental potentials.

If you tire with renting then simply follow the other old rule:  buy low and sell high.  There is no simpler axiom and one that holds true no matter what sort of economy we are in.  

Real estate has always recovered.  It is not a matter of if.  It is a matter of when.  So, the truth about the market is, that it is the absolute ideal time to be a buyer.  I think the more positive people can be about real estate, the better off we all will be. As always – call me with ANY questions, check out my website at www.eagleriverhomefinder.com, my blogsite at www.juliesellswisconsin.com and feel free to pass this on!

Real es             The chart below shows Historic Mortgage Rates and Historic recessions and it is a great example of why we should be buying real estate in today's market.