Posts in Market Trends
Wisconsin Realtors Association
Press Release and Report
MADISON, Wis. –Wisconsin existing home sales jumped 9.2 percent in April 2013 compared to April 2012, representing 22 straight months of positive sales growth in the state. Median prices climbed by a solid margin, growing 7.8 percent over the past year to $138,000, according to the most recent statistical report released by the WRA.
For more of the official press release, click here.
In our local market, the small smaple size can lead to some skewed figures. We saw April slow in Vilas County but jump ahead in Oneida County.
CountyApril 2013
Year-over-Year
# Transactions
April 2013
Year-over-Year
Median Price
We believe the cold and snow were major contributors to the soft sales during April. Last year we had an early ice-out and nicer temperatures, but this year we were still snowshoeing!
... sings Bob Dylan and they certainly are in the real estate market. As early as 2010, we predicted that around the spring of 2012 we would be seeing a turn-around in the real estate market. Last Spring, in our newsletter, we noted that volume was starting to improve but prices were actually still going down. We also stated, "For the first time in 5 years, I am saying, we have hit the bottom and we are starting the recovery." As you can see from the national trends in the graphs below, the inventory of homes for sale has fallen significantly over the past two years. You can also see, nationally, the prices have finally started coming back. Monthly Inventory of Homes for Sale 10.0 9.0 8.0 7.0 6.0 5.0 4.0 NAt 17013 Eliason Realty has been seeing similar trends. Eliason Realty saw a 60% increase in sales volume in 2012 over 2011. That is compared with a 27% increase for the entire MLS. We have also seen a significant decrease in our volume of listings. In fact, based on the early 2013 indications, we are going to be short on the inventory needed to meet the demand that appears to be on the horizon for the rest of the year. With that in mind, the Northwoods could be entering the price recovery we have been waiting for. (You will see from the graphs on page 2 that although volume has begun to spike, prices simply level off.) We typically don't want to put too much weight on one month, but historically slow January was anything but. According to the \X/RA, sales in Wisconsin were up 18.3% over January 2012 and median home prices increased 3.4% over that same period. If you have been thinking of selling your property, but thought the market was not strong enough yet, you may very well want to consider taking advantage of the current trend.
Substantial housing gains were achieved in Vilas and Oneida Counties during 2012. We experienced greater sales volume than anytime in the last five years with number of homes sold reaching or exceeding the peak 2006-07 unit sales figures.
The median sales price for a home has stayed relatively flat in Vilas County over the last 5 years, while Oneida County has fluctuated and grown some over the last 5 years. Neither county has reached the high median sales price we experienced in 2005, 2006 and 2007. Median sales price reflects the price range where most sales activity is occuring, where buyers show confidence and ability to purchase.
Oneida County Housing Statistics - thru 2012Vilas County Housing Statistics thru 2012
By: National Association of Realtors
On Jan. 1 both the Senate and House passed H.R. 8 legislation to avert the “fiscal cliff.” The bill was signed into law by President Barack Obama on Jan. 2.
Below is a summary of real estate related provisions in the bill:
Real Estate Tax Extenders Mortgage Cancellation Relief is extended for one year to Jan. 1, 2014 Deduction for Mortgage Insurance Premiums for filers making below $110,000 is extended through 2013 and made retroactive to cover 2012 15-year straight-line cost recovery for qualified leasehold improvements on commercial properties is extended through 2013 and made retroactive to cover 2012 10 percent tax credit (up to $500) for homeowners for energy improvements to existing homes is extended through 2013 and made retroactive to cover 2012 Permanent Repeal of Pease Limitations for 99% of TaxpayersUnder the agreement so called “Pease Limitations” that reduce the value of itemized deductions are permanently repealed for most taxpayers but will be reinstituted for high income filers. These limitations will only apply to individuals earning more than $250,000 and joint filers earning above $300,000. These thresholds have been increased and are indexed for inflation and will rise over time. Under the formula, the amount of adjusted gross income above the threshold is multiplied by 3 percent. That amount is then used to reduce the total value of the filer’s itemized deductions. The total amount of reduction cannot exceed 80 percent of the filer’s itemized deductions.
These limits were first enacted in 1990 (named for the Ohio Congressman Don Pease who came up with the idea) and continued throughout the Clinton years. They were gradually phased out as a result of the 2001 tax cuts and were completely eliminated in 2010-2012. Had we gone over the fiscal cliff, Pease limitations would have been reinstituted on all filers starting at $174,450 of adjusted gross income.
Capital GainsCapital Gains rate stays at 15 percent for those in the top rate of $400,000 (individual) and $450,000 (joint) return. After that, any gains above those amounts will be taxed at 20 percent. The $250,000/$500,000 exclusion for sale of principal residence remains in place.
Housing: Year End Reports Reveal Market Coming Back by THE KCM CREW on JANUARY 2, 2013 · 0 COMMENTS Every year-end housing report revealed that the real estate market is recovering quite nicely. Here is a quick synopsis of each: Existing Home Sales Report Total existing-home sales rose 5.9 percent in November over last month Sales are 14.5 percent higher than November 2011 Sales are at the highest level since November 2009 The national median existing-home price was $180,600 in November, up 10.1 percent from November 2011 Total housing inventory at the end of November fell to a 4.8-month supply; it was 5.3 months in October, and is the lowest housing supply since September of 2005 when it was 4.6 months Pending Sales Report Pending home sales increased in November for the third straight month and reached the highest level in two-and-a-half years The index is at the highest level since April 2010 when buyers were rushing to beat the deadline for the home buyer tax credit With the exception of several months affected by tax stimulus, the last time there was a higher reading was in February 2007 On a year-over-year basis, pending home sales have risen for 19 consecutive months New Home Sales Report Sales of new homes rose 4.4% in November to a two-and-a-half-year high This is the highest level since April 2010, when a temporary tax credit boosted demand. Sales are now 15.3% higher compared to one year ago Case Shiller Home Price Index Home prices rose 4.3% in the 12 months ending in October In nineteen of the 20 cities covered, annual returns in October were higher than September
Every year-end housing report revealed that the real estate market is recovering quite nicely. Here is a quick synopsis of each:
Existing Home Sales Report Total existing-home sales rose 5.9 percent in November over last month Sales are 14.5 percent higherthan November 2011 Sales are at the highest level since November 2009 The national median existing-home price was $180,600 in November, up 10.1 percent from November 2011 Total housing inventory at the end of November fell to a 4.8-month supply; it was 5.3 months in October, and is the lowest housing supply since September of 2005 when it was 4.6 months Pending Sales Report Pending home sales increased in November for the third straight month and reached the highest level in two-and-a-half years The index is at the highest level since April 2010 when buyers were rushing to beat the deadline for the home buyer tax credit With the exception of several months affected by tax stimulus, the last time there was a higher reading was in February 2007 On a year-over-year basis, pending home sales have risen for 19 consecutive months New Home Sales Report Sales of new homes rose 4.4% in November to a two-and-a-half-year high This is the highest level since April 2010, when a temporary tax credit boosted demand.
Housing sales across the Northwoods this fall continue to show strength in number of units sold as well as median home price. Below are tables for Oneida County Housing Statistics and Vilas County Housing Statistics as reported by the Wisconsin Realtor Assocation for through October 2012.
NEWS RELEASES Pending Home Sales Rise in October Media Contact: Walter Molony / 202-383-1177 / Email
NEWS RELEASES
Pending Home Sales Rise in October
Media Contact: Walter Molony / 202-383-1177
WASHINGTON (November 29, 2012) - Pending home sales rose strongly in October with mixed regional results, according to the National Association of Realtors®.
The Pending Home Sales Index,* a forward-looking indicator based on contract signings, increased 5.2 percent to 104.8 in October from an upwardly revised 99.6 in September and is 13.2 percent above October 2011 when it was 92.6. The data reflect contracts but not closings.
Lawrence Yun , NAR chief economist, said buyers are responding to favorable market conditions. "We've had very good housing affordability conditions for quite some time, but we're seeing more impact now from steady job creation, and rising consumer confidence about home buying now that home prices have clearly turned positive."
Outside of a few spikes during the tax credit period, pending home sales are at the highest level since March 2007 when the index also reached 104.8. On a year-over-year basis, pending home sales have risen for 18 consecutive months.
Yun noted there are clear regional patterns. "Contract activity surged in the Midwest and is showing very healthy gains in the South, but was down slightly in both the Northeast and West," he said.
"The Northeast saw some impact from Hurricane Sandy, but limited inventory in the West is keeping a lid on the market. All regions are up from a year ago, with double-digit gains in every region but the West," Yun said.
The PHSI in the Northeast slipped 0.1 percent to 79.2 in October but is 13.3 percent above a year ago. In the Midwest the index jumped 15.6 percent to 104.4 in October and is 20.0 percent above October 2011.
The 2012 figures show the percent change in equalized valuation Vilas County experienced between the 2010 and 2011 real estate valuations. The equalized value of residential real estate in Vilas County dropped 5% last year (based on the comparison of equalized values as of Jan 1, 2011 and Jan 1, 2012), the largest decline in recent history.
The first half of 2012 has included heavier demand for real estate in our area (and many areas across the country), suggesting that we may be bouncing around at the bottom. As real estate sales volume grows, helping prices to stabilize.
See the August 15, 2012 Press Release by the Wisconsin Department of Revenue. http://www.revenue.wi.gov/news/20120815_01.pdf
Eliason Realty of the North, Inc.
Eagle River, St Germain, Vilas County, WI -- www.EliasonRealty.com
Our agents headed out to preview two of our new listings today:
McKinley Blvd Home on the Eagle River Chain -
Artfully and masterfully finished home on the Eagle River Chain, located on McKinley Blvd., across from the Eagle River Golf Course. Please inquire for further details on this new exclusive listing!
Just a few blocks from the Catfish Lake boat landing, giving you access to the Eagle River Chain. 4 bedroom home has lots of room for a growing family.The main level has a large rm, beamed ceiling, a brick f/p that uses wood or gas, and patio doors leading to an outside deck, which is also accessible from the master bedroom. Every room has lots of light with the large picture window in the living rm/master bd. The master suite features recessed lighting, a full bath and walkin closet. Theres another bedroom on the main floor, a dining and family room combination, the kitchen and a full bath. Upstairs you will find 2 more bedrooms and a full bath. The lower level has a finished family rm and laundry center. Exterior is cedar sided, there are 2 garages, one which has an attic/storage area above, and a separate electric service. If that's not enough, the 4 bedroom septic is brand new, there's central air and a blacktop drive. Screened porch with hot tub. 4.42 acres.
Home sales rise in Vilas, Oneida during March
By Gary Ridderbusch
News-Review Editor
Existing home sales were up significantly statewide and locally in March, with home sales growing 91% in Oneida County and 21% in Vilas County over the levels of March 2011, according to a report from the Wisconsin REALTORS® Association (WRA).
Home prices in March also rose in the two counties compared to March 2011, with Oneida County sales up 16% to $152,500 and Vilas County sales up 15% to $150,000.
“We are definitely seeing increased traffic,” said Peggy Johnson-Wiessner, president of the Northwoods Association of Realtors. “Sale were up considerably in March.”
Statewide, March home sales increased 25% over the levels of March 2011 and the median prices rose slightly for the first time since the end of 2010, up 0.4% to $123,500 compared to the same month last year.
“We certainly had a mild winter, and that may account for some of the strength in home sales last month, but it’s important to note that we’ve seen very strong growth in home sales over the last nine months,” said Rob Keefe, chairman of the WRA board of directors.
Oneida County reported its sales of existing homes increased from 23 during March last year to 44 this year. Vilas County increased from 24 to 29 sales.
The median price for March sales increased from $131,500 to $152,500 in Oneida County during March and in Vilas County the median price went from $130,500 to $150,000.
Johnson-Wiessner said she expects the median prices will continue to increase as the huge number of existing properties sell. Many of the available properties were foreclosures, which brought prices down.
“As we whittle down those properties on the market, the prices will continue to go up,” said Johnson-Wiessner.
Have We Hit The Bottom?
To say that the Real Estate Market in the Northwoods has been heating up over the past couple months is kind of like saying Michael Jordan was pretty good in the fourth quarter. That is an understatement! For us Realtors who have been working through the toughest real estate market since the great depression, the past several months have been a very refreshing change. There were some signs even at the end of 2011. November and December were strong months based on the time of year. We have all noticed for many months that the calls have increased, web traffic has picked up, and responses to e-mails and mailings (like this one) are much greater.
Yet nobody wants to jump the gun and call a bottom. We have all been burned before thinking the bottom was just around the corner. Besides, there are still many bank owned properties out there and it sounds like more in the pipeline. Yet, let’s look at some of the numbers. . .
Sales (units sold) over the first quarter of 2012 are through the roof. They are better than they have been in over 7 years for single family homes. The average sales price is up for the first time since 2008. Nationally, the Pending Home Sales Index is now 12.8 percent higher than March of 2011. (if you would like to see charts with first quarter comparisons by property type over the past 7 years, contact a real estate agent.)
Good numbers. The type of numbers we have been waiting for. Although, looking at these numbers a little closer and we see that there really is only one segment of the market that is actually having the strong rebound these numbers suggest. That is on water, single family homes. The units sold are up almost 170% from last years’ first quarter and this is the best first quarter for units sold in over 12 years. Average price sold is up more marginally, 5.8% and are still down 31% from their 2008 1st quarter peak.
So you notice units sold are through the roof but prices aren’t really moving. Without prices moving, how can we really call this a bottom or the start of a rebound? If you have read my previous Newsletters, Market Updates, blogs or e-mails, you might recall what we said about the eventual recovery. Prices are a trailing indicator.
