With Vacation Homes, Expect Time on Market to be Longer

By
Real Estate Broker/Owner with Madeline Island Realty 50317-90
https://activerain.com/droplet/4PMS

With Vacation Homes, Expect Time on Market to be Longer

 

Every so often, a prospective buyer points to the "Days on Market" number on the MLS data sheet and asks, "why has this property been on the market for such a long time?"  I believe that many of these would-be buyers are looking for another way to ask, "what's wrong with this house?"

 

But market times can be much longer in a vacation home/recreational area, particularly when tourist activity is unquestionably seasonal. With few exceptions, in our Apostle Islands real estate market (in northwest Wisconsin), our tourist season is six months long, with the remaining winter months being far less populated.

 

By mid-November, tourist traffic to and from Bayfield, Wisconsin and Madeline Island slows dramatically. We still get visits during late autumn by a few die-hard vacation home shoppers looking for an "end-of-the-season" bargain. But weather is the deciding factor in determining  when showings cease (and when they resume in late spring).

 

When we communicate with Madeline Island buyers in midwinter and try to set up a showing, many of those buyers reply with, "call me when the ice road goes out and the ferry starts running again".  During times when the windsled is the only available option to travel between Bayfield and LaPointe, a large percentage of Madeline Island visitors choose to opt out of the bumpy, noisy ride across the ice.

 

Most of Madeline Island's local residents keep a car on both sides of the two-plus miles of icy Lake Superior's Chequamegon Bay during winter. Tourists don't have that option. The logistics of getting a car over to the Island for a midwinter showing can be daunting. And we have no taxi service or car rental service on the Island either.

 

"Days on Market" statistics on MLS are perceived by most home buyers as a measure of buyer interest and also an indicator of possible overpricing. But when such a statistic is skewed by an area's seasonal nature, as well as by weather and geography, it's no longer an accurate or useful measuring stick.

 

So our advice is, take "Days on Market" statistics with more than a grain of salt. Some of our best home sales, especially in the upper price brackets, have occurred after well over a year on the market.

 

 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Home Buying
Location:
Wisconsin
Groups:
WaterFront Homes
Vacation and Second homes
Resort and Second Properties (RSPS)
WATERFRONT REAL ESTATE
Things to Do/Places to Visit
Tags:
lake superior
madeline island
chequamegon bay
la pointe
northwest wisconsin
bayfield wisconsin
apostle islands real estate
wind sled

Spam prevention
Show All Comments
Rainmaker
3,106,865
Kristin Johnston - REALTOR®
RE/MAX Realty Center - Waukesha, WI
Giving Back With Each Home Sold!

Makes sense...I guess it also depends on price/marketing/area the regulars

Mar 14, 2016 12:37 AM #1
Rainer
89,843
Dana Tapia
Re/Max of Orange Beach - Orange Beach, AL
Gulf Coast Real Estate Professionals

We experience the exact same thing here, Eric.  Orange Beach and Gulf Shores are vacation destinations, and sales are definitely seasonal.

Mar 14, 2016 10:24 AM #2
Rainmaker
563,389
Eric Kodner
Madeline Island Realty - La Pointe, WI
CRS, Madeline Island Realty, LaPointe, WI 54850 -

Krinstin Johnston - My issue with attributing long market times to price and marketing is that the actual demand for second homes, especially in the rural northern United States, is relatively scarce. When you start with a very unique property for sale in a market like ours, your prospect base is finite. In a thin market, it's also true that buyers make themselves aware of whatever is available, regardless of whether it is marketed properly or not.

Mar 14, 2016 08:16 PM #3
Rainmaker
563,389
Eric Kodner
Madeline Island Realty - La Pointe, WI
CRS, Madeline Island Realty, LaPointe, WI 54850 -

Dana & Lisa - And if you add a less-than-temperate seasonal climate like ours in northwest Wisconsin, with maybe seven or eight months with decent temperatures and four months of snow and ice, it makes selling a second home even more challenging!

Mar 14, 2016 08:19 PM #4
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
563,389

Eric Kodner

CRS, Madeline Island Realty, LaPointe, WI 54850 -
Ask me a question about Madeline Island Real Estate
*
*
*
*
Spam prevention