The above chart shows year end home averages for Vilas and Oneida Counties for the years 2003 and 2009. It does not show volume however. I will show volume in the next newsletter. Volume has definitely increased in the last quarter of 2009.
There is some bad news along with the good news of the increased volume levels. We have seen increased activity in the foreclosure market and that did affect the overall average figures in 2009. With volume off 60% on-water from 2007, a deep discount on a home will have a bigger affect on the average figures and I think that is what we are seeing at year end here in 2009. Waterfront homes are selling at around the 2005 price level. Off water homes did not see the spike in values that on-water did and the price has not changed drastically from 2008 levels.
What does all this mean for the future? It all starts with consumer confidence and the Buyers seem to be coming back at this time. They are bargain shopping! Interest rates are still quite attractive, still hovering around 5%. Then there is the $6500 stimulus for all Buyers. I think 2010 will be a stronger year for Northwoods real estate.
Best wishes for the new year!
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