The housing market in northern Wisconsin is showing some signs of improvement this year after a significant decline during and after the Great Recession, according to “Up North” Realtors.
“Just like everybody else, when the bubble burst (the ‘Up North’ housing market) came crashing down,” said John Misina, managing broker of Eliason Realty of the North, which mostly does business in Vilas and Oneida counties. “We’ve had a slow couple of years, but things have picked up substantially the last month or so. We’ve had more showings and more inquiries. It’s not perfect, but it’s better.”
“For our firm, it seems to be picking up quite a bit,” said Jim Gajewski, broker associate with Area North Realty in Hayward. “A lot of phone activity, a lot of Internet activity. We’ve got a lot of offers in the works. It seems like this spring has been the best in the last three years.”
The values of higher-end homes “Up North” have held up better than the values of lower-end homes, but overall, prices are down about 20 to 35 percent from the 2005-07 market peak, Misina said. Prices in the Hayward area are down about 15 to 30 percent, Gajewski said.
The number of sales is down about 40 percent from the market’s peak prior to the Great Recession, according to Misina. In the Hayward area, transaction volume is down about 50 to 75 percent, Gajewski said.
“Up North” waterfront properties priced under $350,000 are selling well right now, said Michael Mulleady, general manager for Coldwell Banker Mulleady Inc., which serves the Minoqua, Rhinelander, Manitowish Waters and Eagle River areas. However, homes priced in the $500,000 to $800,000 range are not selling. Sales for homes priced around $900,000 have improved recently, he said.
“It’s an extreme buyers market,” Mulleady said. “Generally speaking, the sellers in the market have to sell. People that don’t have to sell are not in the market right now. The buyers are not looking for a deal, they’re looking for a steal.”
Activity in the “Up North” housing market is picking up as buyers are finally starting to jump in, sensing that the market has hit bottom and it is time to take advantage, Mulleady said.
Many waterfront homes selling for under $350,000 were previously priced in the $500,000 to $600,000 range, he said. These homes typically have 2,000 square feet of space or less.
Many of the homes now listed in the $900,000 range were previously priced in the $1.3 million to $1.4 million range, Mulleady said.
The lack of buyers “Up North” in the $500,000 to $800,000 range could be a direct result of the weak housing market in southern Wisconsin. Buyers in that price range are typically snow bird retirees who sell their home in the Milwaukee or Madison area, buy a home “Up North” and take residence in the Sun Belt, Mulleady said. But many homeowners in southern Wisconsin who have seen the value of their homes decline since the Great Recession may not be willing to sell their homes until the market recovers.
“Up North” homes in the $500,000 to $800,000 range generaly have 2,500 to 5,000 square feet of space and a “couple hundred” feet of water frontage, Mulleady said.
“We’re not seeing that market as much,” he said.
The foreclosure crisis that has hammered most of the nation’s housing market since the housing bubble burst also has affected the “Up North” market. Most foreclosures “Up North” are on lower-priced homes, but a few high-end homes also have gone into foreclosure, Misina said.
However, Gajewski said he has seen an even distribution of foreclosures in all prices ranges, “from $900,000 homes to $15,000,” he said. And foreclosures have been on the rise lately, he said.
“It kind of comes in rushes,” Gajewski said. “It seems to be picking up again.”
New housing development, including speculative developments, have declined significantly “Up North,” Misina said.
As the spring and summer home buying season progresses, “Up North” Realtors hope their region’s housing market also continues to improve.
“We’re cautiously optimistic,” Misina said. “Our housing market isn’t good, but it’s not the worst, either.”
Eliason Realty of the North Blog 