While home unit sales have been fading in the last quarter of 2010, home values are doing better! The curves below represent average home sales prices from 2003 to the present and I have separated on-water homes from off-water homes. One will note that the off-water homes have remained more stable than the on-water homes.
In Oneida County, lake homes have stabilized and are selling in the 2005-2006 price levels. Some of the spike in values that we saw in 2007 and 2008 has not been recovered but it is nice to see some stability. In Vilas County, there is better news in that average price levels appear to be rising. Vilas is also selling the 2005-2006 price levels.
Everything is getting better right? I wish I could say that all segments of the market are rising. The premium price levels are still stagnant. Only 45 of the 296 lake homes that have sold did so for over $500K. 13 sold for over $750K and only 3 sold for over $1M. In years 2005 through 2008, 50 homes sold for over $1M so we normally are looking at 10 units a year in the upper price bracket. Drops such as this have a significant effect on the average price values. Hopefully, this market will show some life in 2011 and that will help buoy average price values of all homes.
One storm cloud formed in the past week. Interest rates shot up almost a full point in the last 5 days. There is no one explanation but uncertainty over the debt sent the bond markets into hypermode. I am hoping that the market overreacted and will drop back to those very attractive rates of the fall (around 4.25% for a 30 year mortgage).