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What has the market actually been doing?  Here are the statistics of the 1st Quarter 2006 compared to the 1st Quarter 2007.  These are based upon the Northwest Wisconsin Realtor MLS.  There certainly have been non-MLS sales. However these MLS statistics do provide a good window into the local market.

Waterfront residences in Washburn County:

2006 the median sale price was $270,000 and the average sale price was  $346,221.  There were a total of 22 closed sales.

2007 the median sale price was $267,500 and the average price was $254,778.  There were a total of 9 closed sales.

Waterfront residences in Burnett County:

2006 median sale price was $201,000 and the average price $234,788  There were a total of 24 closed sales.

2007 median sale price was was $216,500 and the average sale price was $221,438.  There were a total of 16 sales.

Residential (off-water) in Washburn County:

2006 the median sale price was $79,950 and the average sale price was $99.794.  The total number of closed sales was 18.

2007 the median sale price was $107,250 and the average sale price was 109,763.  The total number of closes sales was 22.

Residential (off-water) in Burnett County:

2006 the median sale price was $116,740 and the average sale price was $112,263.  The total number of closed sales was 23.

2007 the median sale price was $69,000 and the average sale price was $78,693.  The total number of closed sales was 28.

So what can we deduce from these figures?  The median and average sale prices for waterfront homes has not changed dramatically.  However the number of closed sales has gone down significantly.  This could mean a number of things, but most likely it shows that demand was weak or that listed sale prices were too high to attract buyers.  Remember these are primarily second homes and the typical buyer is a discretionary buyer.

The residential (non-waterfront) market in Washburn county actually showed strength in the number of closings and the increase in values.  But the residential (non-waterfront) market in Burnett County showed price weakeness even though the number of closings was up.  At this point any conclusions as to why are difficult to ascertain since no specific trend is evident when we look at both Washburn and Burnett counties.  We will probably need another quarter to determine clear market trends. 

However one might be able to suggest that the discretionary waterfront home buyer is not as interested as last year.  That could spell trouble in the future. There is already an over supply of waterfront homes on the market.  This needs to be paid close attention to by sellers that are seeking to attract buyers.

I am always baffled by how real estate agents price homes.  I wonder if real estate agents actually look at the solds.  Here is a perfect example of the lack of market awareness that exists among real estate agents in Burnett and Washburn Counties.  I just did a MLS search of how many homes sold in Washburn and Burnett Counties from 500,000 to 1,400,000.  In the past year there were only eight sales of such homes on the MLS.  There were probably some other FSBO's but needless to say most of the homes that sell in that bracket will be sold by agents.  But there are 39 listings on the MLS!  39!!!!  Of course that doesn't include all the FSBO's that are for sale either.

So what should an agent tell a client that lists a house between 500,000 and 1,400,000?  Answer:  The chance of you selling it is slim.

If that is the answer then why do agents consistently over price homes? Answer:  To get the listing.

What should agents be doing?  Telling people that the market is over supplied and there aren't the buyers you think.  The reality is that if you really want to sell your house you are probably going to have to get realistic about the market.  Otherwise don't list it.