The unit sales for July are better than 2010 but still lackluster. There were 89 homes sold in Oneida and Vilas Counties. That compares to 86 units sold in June and 72 units that were sold in 2010. July historically was a peak month in more “normal” years. When you look at 2006 and 2007, we had sales of 201 and 213 units sold. Was that “normal” or are we now “normal”? July 2008 saw 119 units. There were 77 homes sold in 2009 and 72 homes in 2010. So, 89 homes is a step in the right direction. But we are still selling less than half the number of homes sold that we saw in the mid 00’s.
The number of showings has improved. It was very slow in June. July started off slow but really picked up toward the end of the month. What is driving interest? There are some tremendous values out there and 30 year mortgages are under 4.5%. There are some very motivated sellers out there. Wise buyers recognize value and are taking advantage of the perfect storm of great values and cheap money. Hopefully, we will continue this upward trend into the fall.
One area of concern is appraisals. Fannie/Freddie are always trying to “improve” things. They are attempting to standardize the appraisal procedure. Standardization may be a good thing for urban markets but for rural markets, it may make it a lot harder to get a conventional mortgage. The process is called Universal Appraisal Dataset (UAD) and my bet is that it will be controversial. It goes into place September 1, 2011.
August is spectacular here in the Northwoods. Warm days and cool nights make for the perfect climate. Please get out there and enjoy it!