This chart looks at the average home sale prices in Vilas and Oneida Counties. The on-water and off-water home markets are quite a bit different so I break them down into individual segments.
While unit sales are up approximately 30% from 2009, the average sales prices have not similarly rebounded. Many theories can be presented but the reality is this. We here in the Northwoods do not do much in the way of volume even in a good year. When a home sells for over $1M, it really affects the average price. The highest priced home sale this year was $795,000 for a home on Fence Lake. Of the 312 home sales in Vilas and Oneida Counties this year, only 12 have sold for over $500,000. To make matters worse, there are 317 active listings priced above $500,000 in Vilas and Oneida Counties. This portion of the lake home segment has been hurt much harder than the rest of the market.
The good news is that this market is poised for a rebound. There are excellent buys in this price range and interest rates are below 5%. I remain optimistic that this segment will recognize the value and the opportunities that are available. I predict that we will end the year at approximately $350K for lakefront homes in Vilas and $325K for Oneida Counties.