Are We Seeing Rising Prices for Homes in the Apostle Islands?
It may be premature to forecast a resurgence in upper bracket home prices on Madeline Island (La Pointe, Wisconsin) and in Bayfield, Wisconsin, but some might say a trend is underway. Between spring of 2015 and today, there are signs that prices for homes over half a million dollars are actually rising on the south shore of Lake Superior.
Take a look at the following bar chart of upper bracket home sales in the 54850 and 54814 zip code areas (note the red arrows over the three most recent sales):
Beginning with our April 2015 sale of 1150 Big Bay Road, on Madeline Island, prices for upper bracket homes appear to be rising steadily. Several months later in 2015, our waterfront listing at 671 Main Street (LaPointe WI) sold at over $600,000 which was the first closed sale in our market area to top the $600,000 mark since our sale of 741 Main Street (LaPointe WI) in January of 2014. Upon closing, our recent pending sale of 37640 Brickyard Creek Road, in Bayfield, Wisconsin will represent a continuation of this upward trend.
Prior to 2015, our real estate market in the Apostle Islands (including the Towns of Bayfield and LaPointe, Wisconsin) was still in the early stages of recovery from the financial crisis of 2008. Following that meltdown, there was literally no activity in the upper brackets in our market area between 2007 and 2011.
I'm going to stick my neck out a bit here and call this the "maturing" of a recovering real estate market in our Apostle Islands area. This does not mean that everything that hits the market here will sell, nor does it mean that prices in all brackets are rising. Market times are still quite long in this area. The real estate market in Bayfield is still rather slow, particularly over $400,000. Add to the above the fact that there is a huge pent-up supply of future sellers out there who will be looking for someone to cash them out within the next decade and you have a less-than-perfect real estate market. But it is still encouraging to see some promising news on the horizon for sellers of upper bracket homes in the Apostle Islands region of Lake Superior.