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Real Estate Statistic & List to Sale Price Ratios

by Connie Erickson
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When I talk housing statistics, I commonly refer to the "list to sale price ratio".  Why is this so important?  The list/sale price ratio tells us a lot about the market conditions.  For instance, a few years back, when the market was strong, we saw most properties selling at 95% to 100% of list price.  When this percentage began to fall, it was a clear indicator of falling values.  A smart REALTOR, who continuously watches housing trends and stays on top of the list/sale price ratios, will be able to provide the best advice to both Seller and Buyer clients.  With Seller clients, we know pricing is the key to selling.  If I see list/sale price ratio dropping, I know it is time to look at the pricing of my listing inventory and make recommendations to my Seller clients to better position them in the market we are given.

I do caution Buyers from using the list/sale price ratio as their sole source of establishing a price to offer on a property.  The current average list/sale price ratio for properties sold in Northern Door County is 88.52%. Knowing the trend, I had my Seller client’s price ahead of the curve. Because of this, my average list/sale price ratio so far this year is 93.95%. This means I am netting my Sellers 5.43% more than the market is giving AND we are selling faster with less complication. For information on complications that occur with contracts, see my blog, "Housing Trends & Contract Failures".

Housing Trends & Contract Failures

by Connie Erickson
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According to a recent report on National Housing Trends put out by the National Association of REALTORS (NAR), purchase contract cancellations caused the slip in residential home sales reported in June.  Lawrence Yun, NAR chief economist, said, "Home sales had been trending up without a tax stimulus, but a variety of issues are weighing on the market including an unusual spike in contract cancellations in the past month."   Yun further explained, it is unclear all the reasons why for the contract cancellations, but "problems including tight credit and low appraisals" are contributing factors.  (REALTOR.org. Washington, DC, July 20, 2011).

While I agree with Mr. Yun, the other less apparent reason for purchase contract cancellations is the uneducated participants involved in the transaction.  Now, more than ever, it is vital that you work with a REALTOR who is educated on the market in which they represent.  The best way to find that REALTOR, is to look for the REALTOR with the highest sales volume.  Experience goes along with high sales volume.  Nationally, the average REALTOR sells only 7 properties per year. 

Here’s a thought for you………… If you’re told that you need surgery, would you choose a surgeon who has performed the surgery 7 times or one who has performed the surgery hundreds of times?  I know that I’d choose the latter.

When you’re interviewing a REALTOR to represent you, ask how many properties they have sold in the last 5 years.  Then ask them to show you the sales.  I can almost guarantee you, by selecting the REALTOR with the largest sales volume, your transaction will make it to the closing table and it WILL close.

DOOR COUNTY HOUSING STATS

by Connie Erickson
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The second quarter housing market stats for Door County are out. Door County’s real estate housing market is on par with that of 2010. The only big difference is the vacant inland land sales in Northern Door. Northern Door vacant inland land sales were down by nearly one-half so far this year (18 compared to 35 in 2010). The number of commercial properties on the market for sale in Northern Door is down by over one-third (22 this year compared to 79 last year). The average list price to sale price ratio for all properties sold in Northern Door was 88.52%. My average so far this year is 93.95%. Knowing the market does make a difference. Call me anytime to talk real estate and Door County’s current housing market!

DOOR COUNTY HOUSING STATS

Quick Door County Real Estate Market Review

by Connie Erickson

 

Quick Market Comparison for Northern Door County for Jan 1, 2011 - June 8, 2011*

Liberty Grove, Sister Bay, Ephraim, Gibraltar, Baileys Harbor, Egg Harbor, Jacksonport, Sevastopol

 
Residential Waterfront 2010 2011  
Number of Home Sales 9 8    
Average Sales Price $544,389 $667,863    
Average Days on Market 352 332    
Number of Homes on Market 99 117    
Months of Inventory 55 Months 73 Months    

 

Residential Inland 2010 2011  
Number of Home Sales 22 29    
Average Sales Price $261,809 $260,503    
Average Days on Market 341 253    
Number of Homes on Market 265 279    
Months of Inventory 60 Months 48 Months    

 

Vacant Waterfront 2010 2011  
Number of Land Sales 1 1    
Average Sales Price $245,000 $35,000    
Average Days on Market 1658 235    
Number of Listings on Market 46 49    
Months of Inventory 230 Months 245 Months    

 

Vacant Inland 2010 2011  
Number of Land Sales 27 11    
Average Sales Price $79,826 $85,182    
Average Days on Market 401 639    
Number of Listings on Market 541 558    
Months of Inventory 100 Months 253 Months    

 

Commercial 2010 2011  
Number of Commercial Sales 5 7    
Average Sales Price $196,100 $294,500    
Average Days on Market 458 466    
Number of Listings on Market 75 70    
Months of Inventory 75 Months 50 Months    

 

Residential Condominium 2010 2011  
Number of Condo Sales 26 24    
Average Sales Price $289,188 $310,707    
Average Days on Market 533 537    
Number of Condos on Market 318 280    
Months of Inventory 61 Months 58 Months    

 

Hotel Condominium 2010 2011  
Number of Condo Sales 10 8    
Average Sales Price $82,120 $70,438    
Average Days on Market 363 3324    
Number of Condos on Market 167 136    
Months of Inventory 83 Months 85 Months    

 

*This represenation was prepared by Connie Erickson, Door County Realty, Inc. from the MLS statistics on 6/8/2011 and is based on data supplied by the Door County Board of REALTORS Multiple Listing Service. Neither the Board nor its MLS guarantees or is in any way responsible for its accuracy. Data maintained by the Board or its MLS may not reflect all real estate activity in the market. All REALTOR member agencies report all their sales to the MLS unless directed otherwise by a seller. Therefore, there may be some sales not included in these statistics. Private sales (those with no REALTOR involvement) are not included in these statistics.

Yes, You Can Finance Vacant Land!

by Connie Erickson
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YES, YOU CAN FINANCE VACANT LAND!

There are lenders who prefer not to finance vacant land, however, Robin Sodd at North Shore Bank in Sister Bay will!  Their current lot loan program requires a minimum of 20% down.  The loan is a 3 year adjustable rate mortgage (ARM) at 3.50%.  The loan can be amortized up to 15 years if under $100,000.  The interest rate of 3.50% can adjust a maximum of 2% per year after the 3rd year and has a lifetime cap of 6%, so the interest rate will not exceed 9.50%.  (Note: These terms are as of May 11, 2011 and are subject to change.  See lender for APR.)

A letter from the Village, Town, or County Zoning Department (whichever applies) indicating the property is "buildable" is required.  In addition, a soil test confirming the type of septic system the property will support is also required.  If you do not plan to build right away, Robin said the soil test could possibly be waived.   A current survey of the property may be required.

For questions pertaining to vacant land loans, contact Robin Sodd at:  [email protected]

Big Zoning Changes Affect Shoreland Owners!

by Connie Erickson
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There are new rules coming that will affect shorefront land owners!

All properties that fall within shoreland zoning jurisdiction will be subject to the new rules. The new NR115 is in effect now, however counties have until February of 2012 to have an ordinance in place. The new ordinance could be in place anywhere from November 2011 to that February 2012. There may possibly be an extension from the State to that deadline. 

The following is my understanding of of the new rule after listening to a presentation given by Kay Miller of the Door County Zoning Department:

1.  There will be no clear cutting on a shorefront parcel, nor is there currently.  The rules will allow tree cutting/trimming of 30% of the lot or 200' whichever is less for viewing/access corridor. No additional cutting is allowed.

                
NOT ACCEPTABLE CLEARING      ACCEPTABLE CLEARING

2. The height restriction will be 35’ above grade. The Door County Zoning Ordinance (DCZO) already has a 35' height restriction and a 28’ height restriction on lots less than 90' wide.

3. The biggest eye opener for me is the impervious restrictions which currently equals not more than 45% for most of the shoreland zoning districts under the DCZO.  Impervious means anything that is not green, so the current rules say that you can use 45% of the property to build, put in driveways, patios, etc., the remainder must remain "green."  The new rule says that you can only have 15% of the lot in impervious area.  "Green" means anything that is green:  vegetation, garden, trees, grass.  One can go as high as 30% of impervious area with mitigation, and the new rules will never allow any more than 30%.  This would apply to any proposed projects.  If you are over the allowable "Impervious Surface Ratio" you may keep what you have until some proposed change triggers action. Mitigation will require an agreement to be recorded on the deed.

4. There will be new rules regarding set back averaging.  The building set back requirement is 75' from the Ordinary High Water Mark (OHWM).   Under current rules, this 75' set back can be lessened should there be an existing dwelling on either side of you, but within 100' of your building site, that is located less than 75' from the OHWM.  This means you could have a home on one side and a vacant lot on the other side.   The new averaging procedure requires that there be dwellings on both sides and within 100' of your building site, in order to use the averaging procedure.

If you are considering...
-purchasing waterfront land and building, you may want to ACT NOW as the new rules may limit what you have in mind! 
-adding on to your existing waterfront home/cottage/structure, you may want to ACT NOW!
-making any type of changes whatsoever, you may want to ACT NOW!

As always, speak to the Zoning Department and a builder to see how these changes will affect you now or in the future.

To find out more about this, I encourage you to go to:  view the Door County Zoning Ordinance or call the Door County Zoning Department at 920.746.2323 and ask for Kay Miller or the appropriate zoning administrator for the town you are requesting information.

If you have a family member or friend who is planning on building on a shorefront/lakefront lot or expanding their current home or cottage, send this to them...they'll be glad you did!

Home Sale Statistics

by Connie Erickson
google map to real pro systems 

The Nation Association of REALTORS, in their April monthly Wisconsin Housing Report, reported sales of existing homes fell 18.5% in March compared to the same time last year. One has to be cautious when looking at these statistics because the stats are being compared with the same time last year when the home buyer tax credit was offered. This really is not an apples to apples comparison.

Existing home prices in the Northeast dropped 11.2%. It is important to remember that real estate markets are local.

The unemployment figures in Door County for the month of March improved slightly, but will improve largely as the summer approaches with the seasonal activity of the vacation market. Those who are buying recognize the opportunity to capitalize on the excellent interest rates and the fact that our market sale prices have decreased approximately 5 to 10%.

My personal activity is greater than the years’ before, and I anticipate a much better year in 2011 than 2010. While I remain cautiously optimistic, if one is priced correctly and teamed with a REALTOR with an aggressive marketing program, those combinations will obtain the Contract for Sale. The next and final step is getting it closed. So when you are looking for a REALTOR to select, ask the REALTOR how many Contracts (accepted Offers) they have had this year AND how many of those contracts closed. My contract to contract closed ratio, year to date is 100%.

PIER REGISTRATION DEADLINE APRIL 1, 2011

by Connie Erickson
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Pier Registration Deadline Is April 1, 2011

Waterfront property owners with larger piers must register their piers with the DNR by April 1, 2011 to ensure their piers will be "grandfathered" from new size limits adopted by the State of Wisconsin in 2004.

Generally, a pier will need to be registered if it:

(a) is wider than 6 ft, but less than 8 ft in width

(b) has a platform at the end of the pier that has a surface area of less than 300 ft (w/ a max. width of 10 feet)

and/or

(c) more than 2 boat slips for the first 50 feet of shoreline frontage and 1 boat slip for each additional 50 feet of shoreline frontage.

To register a pier, a waterfront property owner must complete and mail a registration form to the DNR. To obtain a copy of the registration form and to find out more information about which piers need to be registered, please visit the DNR's website at: 

Waterway & Wetland Permits: Piers, Docks and Wharves.

DOOR COUNTY MARKET CONDITIONS UPDATE

by Connie Erickson
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So far this year, Door County’s Northern Door real estate market is showing a slight decline compared to last year.  As I look at the sales statistics for the period of January 1 through March 17, there were 38 closed sales reported to the Door County Multiple Listing Service in 2010 and 28 closed sales reported this year.  On a whole, the number of reported sales is less than last year, however, inland home sales are nearly double; 7 in 2011 vs. 13 reported this year.  The stats also indicate the list price to sale price ratio is up slightly for inland homes.  Last year, during these first three months, the sales reported were at 89.96% of list price.  This year, the ratio is up to 91.73%.  This does not mean the values are up, it merely indicates that the listing prices are closer to what Buyers are willing to pay.

I will be updating my market stats after the first quarter stats are in.  Watch early April for the updated report on my web site.

As you know, I LOVE TALKING REAL ESTATE…So if you ever have questions about Door County’s real estate market, do not hesitate to call me.Smile

WELLS IN DOOR COUNTY

by Connie Erickson
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Municipal sewer and water are available in the Village of Sister Bay and in the City of Sturgeon Bay.  Private wells are required in the rural areas of Door County as well in the towns and villages that offer municipal sewer only.   I recently had the opportunity to ask one of Door County’s most reputable well drillers, Euclid Well Drilling, common questions on wells that I receive when selling real estate.

 

 

Q:  What does a well cost?

A:  On average, a complete new well and pressure system runs approximately $8,000.00.

Q:  How deep are wells in Door County? 

A:  The average depth is 240’.  However, each area can be different…from 100’ deep in Little Sturgeon to over 300’ deep in the Monument Point area.

Q:  Are there areas in Door County that require deeper wells than other areas?

A:  The Department of Natural Resources requires different amounts of casing in different areas.

Q:  How long does a well last? 

A:  Wells should last many, many years.  It is the pressure system that wears out.  The pumps last anywhere from 10 to 20 years.

Q:  What is “blue shale”?  How does it affect wells?  Where is it found?

A:  Blue shale is soft rock.  We normally put our casing below the blue shale since it is soft and will flake off and actually make the water cloudy.  It can collapse and fall in on the pump.  It is usually found near the shorelines.

 

Mark and Cindy Euclid of Euclid Well Drilling can be contacted by email at:  [email protected]

Displaying blog entries 31-40 of 46

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Connie Erickson
Door County Realty, Shorewest, REALTORS®
10580 Country Walk Dr., #12
Sister Bay WI 54234
920-868-3245

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