Door County Real Estate
Market Update: July, 2022
Have the winds of change started a gentle breeze in the Door County real estate market in July of 2022?
Contracts Opening Up: The first thing we've seen are offers that have fallen apart with no back-up offers that have come back as "Active" in the MLS, with requests from the listing agents to please help them get back under contract. We've seen that four times in the last six weeks on a very visible scale--properties without secondary (back-up) Offers---and we haven't seen much of that in two years. So I do believe that is a breeze from the winds of change.
We're still building on the Bay, where you'll experience gentle waterfront breezes (not winds of change). Waterfront Du Nord Homes for Sale
Interest rates: Well, we've all seen them rise, but the past few weeks we've seen them fall, too. We've also seen lenders get extremely creative and extremely competitive, offering products that are still attractive for Buyers that want or need financing. These winds of change have been predicted since last year, so we've had time to batten down the hatches for this breezy turbulence.
Bump Clauses: A bump clause means that an Offer is written so attractively that it may contain no contingencies (and we've seen thousands of those in the past 2-3 years). Well, right now, I have my first property with a bump clause in ages, because the Offer did have contingencies, that can be "bumped" by another Offer. The language in Wisconsin gives the current Buyers a certain number of days/hours to remove the contingencies that are in the portion of the bump clause. So we haven't seen this for a while, but right now I'm aware of two in our Door County MLS (and I have one of them). I see this as a breeze in the winds of change.
Building is still ongoing, with some building costs actually scaling down.
Still available is our listing at 10553 S. Highland Road, Sister Bay, WI 54234
New Construction, Walk Downtown
Contingencies: Rather than the contingency-free contracts that I mention from the past two years, we are starting to see some contingencies again, including some with home inspections, some with septic and well testing, and some with actual financing contingencies (rather than behind-the-scenes financing, which was pretty common over the past three years). This is a wind of change that is becoming rather breezy (I believe it's becoming the new normal again, but it completely depends on the property).
More Door County Properties on Market: Yep, the super-attractive properties are still getting multiple Offers and going under contract that way, but we're also seeing properties sitting for longer, and that has been going on for a few months now. So this is GREAT news for Door County property buyers, as you aren't wasting your time coming up to find there's not inventory--the old fashioned "property tours" are become a real thing again. I expect this wind of change to keep blowing throughout the rest of this year.
PRICE REDUCTIONS: In 2022, I've reduced prices on 5 different properties for various reasons (and some of these reductions are coming very shortly after listing). Right now, the market is shifting here, and if you don't get an Offer in a short amount of time--it's time to reduce the price until you are at market--even if properties are selling for higher. This is a wind of change I know will continue, as it always does in a "normal" real estate market.
So the Door County breezes are still gentle and balmy, but they are breezes in the winds of change that we did not have in 2019, 2020 and 2021 when the market was going steadily higher and higher. Some blame the stock market, some blame interest rates, some blame turbulence in the news and issues around the world, but we've always had these things. The real estate market is a wild ride--it goes up, it goes down, and it's always a roller coaster. The market is simply shifting, and I've been predicting this since late last autumn. Is the market slow here? ABSOLUTEY NOT. We absolutely have more Buyers than inventory, especially under $500,000 and under $300,000. But I believe that the market is definitely changing.
I'd love to hear from other agents and Brokers around the country about what your own markets are doing, especially in areas where you have active second home markets (not necessarily primary homes). Is it still crazy, or do you see winds of change?
Door County Buyers, if you'd like to search Door County listing inventory and the entire MLS, or plan a property tour, visit me at moredoorcounty.com today. Door County Sellers, contact me today for a discussion on our changing market and how to still sell your home for the most amount of money in the least amount of time. In the meantime, let's hang on and enjoy the ride!