Pending Reassessment in Town of Egg Harbor, Wisconsin

Pending reassessment for the Town of Egg Harbor do to decline in property values.

 

Listen to my latest blog for details!

 

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Good News for the Housing Market

My friend, Laura Seefeldt, Johnson Bank, shared the following good new with me today. Even with the stock market news, there is some good news for the housing market!!!

"On The heels of yesterdays 500+ drop in the DOW, unemployment figures were released this morning with surprisingly good results. 117,000 new jobs were created in the private sector last month, much better than expected.　The result was a lowering of the unemployment rate to 9.1% from the previous months 9.2%.　 So the roller coaster continues and I thought I would share a rate sheet today to give you an idea where rates stand. Historically low!!"

Home loan interest rates are still VERY APPEALING... 15 year fixed at 3.4% with jumbo loan rates on 15 year fixed at 3.875%!　 THIS IS GOOD NEWS FOR THE HOUSING MARKET...NOW IS THE TIME TO BUY!

Real Estate Statistics & List to Sale Price Ratios

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

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 guaranty 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 REAL ESTATE MARKET UPDATE

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

As of June 8, 2011, the number of inland home sales in Northern Door County was up by 24% with the average sale price remaining about the same as in 2010 ($260,000). Waterfront home sales were down slightly, but the average sales price was up from $544,389 in 2010 to $667,863 this year. Residential condominium sales remained nearly the same and the average sales price was $310,707 (up from $289,188). SEE DETAILED INFORMATION HERE!

*This representation 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!

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: rsodd@northshorebank.com

BIG Zoning Changes Affect Shoreland Owners!

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!