The number of Waupaca Chain O' Lakes property transactions for 2016 is way up from 2015 while inventory of Chain properties for sale is way, Way, WAY down. Obviously, 2016 was and 2017 should be a great time to be a Chain property seller as buyers may now be struggling to find multiple choices. And, many Chain properties that had been on the market for a long period, finally sold last year or at the start of 2017.
As you can see form the chart below, 31 properties on the Chain sold last year compared to 21 sales in 2015 – a 41% increase. And, back in 2007, the last year before the real estate recession, 15 properties on the Chain sold.
In mid-March 2017, there are only 23 properties for sale on the Chain which compares to 54 properties listed at the middle of the recession. And, of the 23 currently for sale, three are over $1,000,000 and three more are currently “under contract” waiting to close. So, the “average” Chain buyer only has 17 total properties to look at.
Prior to the big “sold” wave in 2016 and after the recession years, there were usually about 30 to 35 homes on the Chain for sale at any given time. The new reality: “Inventory is Crazy Low”.
Today, both Chain buyers and sellers might have the same question: Are prices going up on waterfront properties?
This is a hard one to answer analytically! But, here are some thoughts:
In mid 2014 a very nice Chain property sold in the lower $800,000 range and then, just sold again in 2016 in the higher $800,000s. At the other end of the value range, a nice year-round house on Bass Lake, which sold in the mid $200,000 range in 2012, changed owners for in the mid $300,000 range in 2016. Clearly, these sales show “analytically” that prices are moving up, which would be logical, given that inventory is crazy low and the number of transactions is way up.
It is also interesting, “analytically,” to look at the number of properties that sold in 2016 and, so far in 2017, that were on the market for a very long time. However, a few of these properties – that had been on the market for a long period, sold way under their “fair market” assessed valuation.
A Chain year around home on Bass Lake sold in the high $300,000 range and had an assessed fair market value of $636,500. The property had been on the market 2010 and was offered at $810,000 back then.
A Taylor Lake cottage near the boat landing that was on the market since 2008, finally sold last year in the lower $200,000 range but, had an assessment of $238,000.
Conversely, a property on Rainbow Lake sold rather quickly last year for just slightly over $1,000,000 and had an assessed fair market value of just $586,000.
The graph above shows rather clearly and “analytically” that values on the lower end of Chain property values are rising. Lesser expensive Chain homes appear to be rising in value as more of them are selling higher than their assessed fair market value now, than in the past.
Higher value homes on the Chain have consistently sold above their assessed fair market value and continue to do so as illustrated below.
And now, the final testament regarding how Chain properties are selling: Back in the real estate recession days, very, very few waterfront houses sold prior to the ice going out. As of NCAA March Madness time, three Chain houses have new owners so far in 2017 while 3 more are under contract now waiting to close.