The Wall Street Journal recently reported that the supply of homes for sale in October has declined in most markets, that is a positive sign for sellers; usually the reverse is true. Inventories do remain above year-earlier levels but the latest data confirms that the surplus is on the decline. Part of the decline may be do to the fact that some sellers are taking their homes off the market and waiting to re-enter when pricing is more in line with their expectations.
For the most part we know that home ownership is a safe and secure way to invest and to build long-term wealth. According to statistics in a recent National Assn. of Realtors publication the price of homes bought ten years ago has increased 88 percent. The number of households is expected to increase 15 percent during the next 10 years thus creating a continued high demand for homes.
The large inventory probably won’t last long, housing prices are forecasted to post positive gains, interest rates are comparable to 40-year lows and even our former Federal Reserve Chair, Alan Greenspan, said that housing prospects are looking up and that most of the negatives are probably behind us. Sounds like it may be a great time to buy a home.
Have a wonderful Thanksgiving holiday!
Enjoy, Life Is Good!
Gary A. Nathan
Thursday, November 16, 2006
Thursday, November 09, 2006
How is Lake Frontage valued?
How is Lake Frontage valued?
A lake property is valued based on 4 primary factors: The first is the primary frontage – this is straight line frontage (not meandering) that is necessary for a build-able lot on the lake the lot is located on. The second factor is the “excess frontage”. Excess frontage is the straight line frontage that cannot be used as a separate build-able lot. The third factor is any improvements (i.e. home, garage, outbuildings). The 4th factor is additional acreage that is above average for the lake the property is located on (i.e. if the average lake parcel is 1.5 acres, a property with 4.5 acres would have extra value in the additional 3 acres over and above the norm for the lake).
One of the myths of lake frontage value is that each foot is worth the same. Market data has consistently shown that value of excess frontage is approximately 40% of the value of primary frontage – this is why township assessors use this formula to apply market and taxable values to lake properties. Here is an example based on $4,500/ foot frontage on Round Lake (that is what exceptional frontage on Round Lake has sold for over the past year). Let’s say there are two new very desirable lake lots for sale on Round Lake. One has 199’ of straight line frontage, the other has 200’. The one with 199’ is valued at $628,200 and the one with ONE EXTRA FOOT is valued at $900,000 – a $271,800 difference for one extra foot of frontage. The reason is that the 200’ lot can be subdivided into two build-able lots (this example assumes this lot has enough square footage to divide it into two lots), and the 199’ lot cannot be divided into two build-able lake lots no matter how many square feet it has. This is information every lake property owner needs to know especially those who are in the process of determining a list price for their lake property and/or those who are looking to purchase new lake property.
Different lakes in our County have different classifications resulting in different minimum lot sizes, required lake front footage, lot line setbacks, etc… – this will be discussed in a future blog entry.
Life is Good...Enjoy!
A lake property is valued based on 4 primary factors: The first is the primary frontage – this is straight line frontage (not meandering) that is necessary for a build-able lot on the lake the lot is located on. The second factor is the “excess frontage”. Excess frontage is the straight line frontage that cannot be used as a separate build-able lot. The third factor is any improvements (i.e. home, garage, outbuildings). The 4th factor is additional acreage that is above average for the lake the property is located on (i.e. if the average lake parcel is 1.5 acres, a property with 4.5 acres would have extra value in the additional 3 acres over and above the norm for the lake).
One of the myths of lake frontage value is that each foot is worth the same. Market data has consistently shown that value of excess frontage is approximately 40% of the value of primary frontage – this is why township assessors use this formula to apply market and taxable values to lake properties. Here is an example based on $4,500/ foot frontage on Round Lake (that is what exceptional frontage on Round Lake has sold for over the past year). Let’s say there are two new very desirable lake lots for sale on Round Lake. One has 199’ of straight line frontage, the other has 200’. The one with 199’ is valued at $628,200 and the one with ONE EXTRA FOOT is valued at $900,000 – a $271,800 difference for one extra foot of frontage. The reason is that the 200’ lot can be subdivided into two build-able lots (this example assumes this lot has enough square footage to divide it into two lots), and the 199’ lot cannot be divided into two build-able lake lots no matter how many square feet it has. This is information every lake property owner needs to know especially those who are in the process of determining a list price for their lake property and/or those who are looking to purchase new lake property.
Different lakes in our County have different classifications resulting in different minimum lot sizes, required lake front footage, lot line setbacks, etc… – this will be discussed in a future blog entry.
Life is Good...Enjoy!
Thursday, November 02, 2006
Memories
This past week I was reading the Historical Vignettes section of our infamous ‘Visitor”, Hayward’s original Visitor Magazine; the piece was a wonderful recap of the stories of the Chicago Club and Lakeshore Fishing Club. It was full of the memories of national regattas, dances, moon reflections on the lake, fishing and the guides who made those trips adventurous. There were anecdotes of the dreams, plans and ambitious building projects of the several owners and accounts of the guides, vacationing guests, parents, children and grandchildren. One guide said “The best part of my job was meeting all the interesting people and exchanging stories with the guests as well as the other guides”.
The best part of my work is meeting the many interesting people who want to be a part of this north woods experience; making their own memories and sharing those with family and friends.
Have a great weekend, make it memorable!
Enjoy, Life Is Good!
Gary A. Nathan
The best part of my work is meeting the many interesting people who want to be a part of this north woods experience; making their own memories and sharing those with family and friends.
Have a great weekend, make it memorable!
Enjoy, Life Is Good!
Gary A. Nathan
Thursday, October 26, 2006
No Guarantees
Investment in real estate is much like the stock market and many other investments, there are no guarantees of return. If you have had the privilege of making any investments lately you know there are a plethora of disclosures to read and sign. They all make you aware of the fact that you are making the decision to buy and/or invest on the basis of your own free will, no one encouraged you to invest and that no one is standing over you with an axe in hand.
Some stocks do well and some are a nightmare; the old “you win some and you lose some”. For some of us the losing was pretty painful. The upside to real estate, at least in our area, is that there has been little downside. True, if you overpaid you may get beat up. While there are no guarantees with real estate you at least get to enjoy living in it, walking on it or at the very least you get to look at it. I can’t say that I spend much time doing the same with my meager stock portfolio. Your thoughts?
Have a great weekend, I am traveling to warm North Dakota and western Minnesota to visit family. The national holiday is coming soon to northern Wisconsin…..the pursuit of the elusive 30-point buck!
Enjoy, Life Is Good!
Gary A.
Some stocks do well and some are a nightmare; the old “you win some and you lose some”. For some of us the losing was pretty painful. The upside to real estate, at least in our area, is that there has been little downside. True, if you overpaid you may get beat up. While there are no guarantees with real estate you at least get to enjoy living in it, walking on it or at the very least you get to look at it. I can’t say that I spend much time doing the same with my meager stock portfolio. Your thoughts?
Have a great weekend, I am traveling to warm North Dakota and western Minnesota to visit family. The national holiday is coming soon to northern Wisconsin…..the pursuit of the elusive 30-point buck!
Enjoy, Life Is Good!
Gary A.
Saturday, October 21, 2006
SOLID GROUND
SOLID GROUND
The housing market does appear to be on solid ground and the October forecasts from many different sources report that the recent cooling will have less than expected negative impact on the economy as a whole. August sales were definitely lower from a year earlier and there is a pretty large inventory.
Personally I think the media tends to report the extreme which has a negative affect on both buyers and sellers.
We consumers continue to spend and the falling energy prices and recent Dow Jones run has certainly triggered smiles.
Locally we just keep chugging along and much of the above translates into continued buyer interest; the forecast for the rest of the year and the first half of next year looks to be very good.
My advice to buyers is to not postpone their prospecting for that dream cabin, home or land. Historically speaking inventories are strong, mortgage rates are good and sellers are in the mood to sell.
Have a wonderful weekend……….
Enjoy, Life Is Good!
Gary A. Nathan
Woodland Developments & Realty
15617 Railroad Street, Hayward, WI 54843
715-634-2110
FAX 715-634-2884
nathan@woodlanddevrealty.com
The housing market does appear to be on solid ground and the October forecasts from many different sources report that the recent cooling will have less than expected negative impact on the economy as a whole. August sales were definitely lower from a year earlier and there is a pretty large inventory.
Personally I think the media tends to report the extreme which has a negative affect on both buyers and sellers.
We consumers continue to spend and the falling energy prices and recent Dow Jones run has certainly triggered smiles.
Locally we just keep chugging along and much of the above translates into continued buyer interest; the forecast for the rest of the year and the first half of next year looks to be very good.
My advice to buyers is to not postpone their prospecting for that dream cabin, home or land. Historically speaking inventories are strong, mortgage rates are good and sellers are in the mood to sell.
Have a wonderful weekend……….
Enjoy, Life Is Good!
Gary A. Nathan
Woodland Developments & Realty
15617 Railroad Street, Hayward, WI 54843
715-634-2110
FAX 715-634-2884
nathan@woodlanddevrealty.com
Friday, September 29, 2006
A Great Opportunity
A Great Opportunity
We have all read and heard about the soft market and how “it is no longer a seller’s market” and home sales have fallen as well as new home starts. So if it isn’t a seller’s market it must be a buyer’s market. This may be the perfect time for buyers to take advantage of the large inventory of properties; it is certainly true that the inventory of lake homes and off-water homes is above last year’s level.
There are some other factors for buyers to take into consideration, there is an apparent lowering of prices on some homes coupled with mortgage rates at a stall and appearing to fall a little. Sellers are also offering interest rate buy-downs, sharing of closing costs, pricing incentives and even gifts like home warranties, house cleaning for six months and fishing boats. I personally like the fishing boat idea.
The good news for buyers is that all this may translate into being able to afford a house now that may have been a future dream as well as a large inventory from which to choose. Prices may not go any lower in the future but in most areas, particularly our area, properties are still appreciating at no less than 4-6 percent. Overall the next six months just may provide some great opportunities. My advice to sellers is to get dressed for the dance; translated that means get your property looking great.
The air is crisp and fresh in the mornings and the fall colors are at near peak so plan to spend some time in the Hayward area soon.
Have a great weekend and
Enjoy, Life is Good!
Gary A. Nathan
We have all read and heard about the soft market and how “it is no longer a seller’s market” and home sales have fallen as well as new home starts. So if it isn’t a seller’s market it must be a buyer’s market. This may be the perfect time for buyers to take advantage of the large inventory of properties; it is certainly true that the inventory of lake homes and off-water homes is above last year’s level.
There are some other factors for buyers to take into consideration, there is an apparent lowering of prices on some homes coupled with mortgage rates at a stall and appearing to fall a little. Sellers are also offering interest rate buy-downs, sharing of closing costs, pricing incentives and even gifts like home warranties, house cleaning for six months and fishing boats. I personally like the fishing boat idea.
The good news for buyers is that all this may translate into being able to afford a house now that may have been a future dream as well as a large inventory from which to choose. Prices may not go any lower in the future but in most areas, particularly our area, properties are still appreciating at no less than 4-6 percent. Overall the next six months just may provide some great opportunities. My advice to sellers is to get dressed for the dance; translated that means get your property looking great.
The air is crisp and fresh in the mornings and the fall colors are at near peak so plan to spend some time in the Hayward area soon.
Have a great weekend and
Enjoy, Life is Good!
Gary A. Nathan
Thursday, September 21, 2006
Wealth…no small potatoes!
Wealth…no small potatoes!
This past week a friend of mine forwarded some information regarding a report on Wealth Transfer Analysis in Wisconsin. The overall publication was put out in 1999 by John Havens and Paul Schervish with Boston College. It is a pretty remarkable study and indicates that over the next 50 years there will be more than $41 trillion of US wealth transferred from the current generation to the next.
In Wisconsin estimates provide that there is about $543 billion in wealth with a projected 10 year wealth transfer of $105 billion. In Sawyer County the analysis indicates that current net worth is $1.93 billion (year 2000). Over the next 50 years the estimated inter-generational transfer of wealth will be $2.3 billion. When we look at the estimates for this decade the wealth transfer is estimated at $0.39 billion. No small potatoes!
The interesting part of this analysis is that if just 5% of the wealth could be captured into community endowments there would be nearly $20 million realized in this decade alone. Think of how that might translate into community betterment.
The entire report was prepared by the Rural Policy Research Institute, Nebraska Center and was commissioned and is supported by the Donor’s Forum of Wisconsin.
Don’t forget that this weekend is Fall Fest in Hayward with lots of arts, crafts, food, music and happenings going on, so come on up north and enjoy the beautiful fall colors. My guess is we are half-way into peak colors and the weather is always splendid.
Have a great weekend and….
Enjoy, Life is Good!
Gary A. Nathan
This past week a friend of mine forwarded some information regarding a report on Wealth Transfer Analysis in Wisconsin. The overall publication was put out in 1999 by John Havens and Paul Schervish with Boston College. It is a pretty remarkable study and indicates that over the next 50 years there will be more than $41 trillion of US wealth transferred from the current generation to the next.
In Wisconsin estimates provide that there is about $543 billion in wealth with a projected 10 year wealth transfer of $105 billion. In Sawyer County the analysis indicates that current net worth is $1.93 billion (year 2000). Over the next 50 years the estimated inter-generational transfer of wealth will be $2.3 billion. When we look at the estimates for this decade the wealth transfer is estimated at $0.39 billion. No small potatoes!
The interesting part of this analysis is that if just 5% of the wealth could be captured into community endowments there would be nearly $20 million realized in this decade alone. Think of how that might translate into community betterment.
The entire report was prepared by the Rural Policy Research Institute, Nebraska Center and was commissioned and is supported by the Donor’s Forum of Wisconsin.
Don’t forget that this weekend is Fall Fest in Hayward with lots of arts, crafts, food, music and happenings going on, so come on up north and enjoy the beautiful fall colors. My guess is we are half-way into peak colors and the weather is always splendid.
Have a great weekend and….
Enjoy, Life is Good!
Gary A. Nathan
Thursday, September 14, 2006
Healthy but Slower
Healthy but Slower
The overall market locally continues to be healthy but sales have slowed; part of the slowdown is due to the fact that schools are back in session and this is traditionally a quieter period. However, history also shows that from late September to hunting season (a national holiday in the north woods of Wisconsin that occurs in late November) the market is pretty active.
The Sawyer County Record recently reported that demand for rural land and lakeshore property led the full market value of private property in Sawyer County. The figures reported by the Wisconsin Bureau of Assessments said that property values increased by 11.29 per cent over last year. Not bad when compared with many other investment opportunities.
The good part is that growth in equalized values does not necessarily translate into higher taxes, that according to Wisconsin Dept. of Revenue Secretary, Michael L. Morgan. He went on to say that Wisconsin homeowners will continue to reap the benefit of a strong Wisconsin economy and that home ownership remains a worthwhile investment.
I would agree with Mr. Morgan and add that our area is especially blessed because of the thousands of acres of water and woods. The market is slower but real estate in general is healthy in the north woods.
This weekend is the Chequamegon Fat Tire Race Festival, it features 2500 cyclists and the event has earned the title of “Nations Most Popular Off Road Bicycle Adventure”. Come on up to Hayward and enjoy a great weekend, the forecast is for sunny skies and warm temperatures. You guessed it; yours truly will be on the lake, beginning tonight, for some great floating and sunset views.
Enjoy, Life is Good!
Gary A. Nathan
Woodland Developments & Realty
The overall market locally continues to be healthy but sales have slowed; part of the slowdown is due to the fact that schools are back in session and this is traditionally a quieter period. However, history also shows that from late September to hunting season (a national holiday in the north woods of Wisconsin that occurs in late November) the market is pretty active.
The Sawyer County Record recently reported that demand for rural land and lakeshore property led the full market value of private property in Sawyer County. The figures reported by the Wisconsin Bureau of Assessments said that property values increased by 11.29 per cent over last year. Not bad when compared with many other investment opportunities.
The good part is that growth in equalized values does not necessarily translate into higher taxes, that according to Wisconsin Dept. of Revenue Secretary, Michael L. Morgan. He went on to say that Wisconsin homeowners will continue to reap the benefit of a strong Wisconsin economy and that home ownership remains a worthwhile investment.
I would agree with Mr. Morgan and add that our area is especially blessed because of the thousands of acres of water and woods. The market is slower but real estate in general is healthy in the north woods.
This weekend is the Chequamegon Fat Tire Race Festival, it features 2500 cyclists and the event has earned the title of “Nations Most Popular Off Road Bicycle Adventure”. Come on up to Hayward and enjoy a great weekend, the forecast is for sunny skies and warm temperatures. You guessed it; yours truly will be on the lake, beginning tonight, for some great floating and sunset views.
Enjoy, Life is Good!
Gary A. Nathan
Woodland Developments & Realty
Thursday, September 07, 2006
Another Perspective
I was just reading a few days ago in the Wall St. Journal about how investors on Wall St. are starting to invest again in Real Estate via REIT's and new home-builder securities. The rationale is we are most likely at the bottom of the market from a securities investment standpoint and that there is (probably) only upside remaining from these investments. The latest month to month data has new and existing home sales down 4% across most major markets. Many of the buyers I am working with have told me that the reason they are still buying lake property up here while their home markets are relatively soft real estate wise is the increased security of a real estate investment in our market vs. their home market. It seems that the ones with real estate dollars to spend are not willing to spend it on their existing or new home (still wondering if the bottom of the market has occured), however, they don't seem to mind spending it up here because they feel it is more secure (and, historical data illustrates that this is correct). So, perhaps less real estate dollars are being spent, however, when they are, they are being spent up here because of our historical stability and the fact that the buyer's can actually enjoy their real estate investment if made up here!
Chris McGrath
Chris McGrath
Thursday, August 31, 2006
What’s Happening in Real Estate?
What’s Happening in Real Estate?
That is a question we hear from both Buyers and Sellers who are asking about the current real estate market, and as one might expect we get all kinds of opinions from those same folks.
The answer depends upon whether we are talking about the national, regional or local market. It took nine months for the national media to report the housing slowdown that started in the summer of 2005; the popping of the residential housing bubble is not exactly new news and yet that is what many customers talk about.
In many of the hot markets it was the “investors” who drove the pricing and once they moved out of those areas the supply and demand for houses became more balanced. To a lesser degree we find that to be true in our local market however we do not experience the roller coaster type ride. Locally I continue to be very optimistic.
Buyers will always be fearful they are paying too much and sellers will be fearful they are leaving too much money on the table. What’s happening is that buyers are more careful in their search and discovery process, and are more patient as they go through the due diligence to be sure the property meets their needs and expectations. Sellers need to price their properties appropriately, provide loads of information to simplify the process for the buyers and stage their property in the best possible manner.
What’s happening locally is that we are blessed with thousands and thousands of acres of lakes, woods and fresh air which attract many great folks to the area. If you happen to be visiting this weekend, don’t miss the Rib and Brew Fest on Sunday in downtown Hayward. Forecast is for beautiful fall temperatures in the 70’s and a slight chance of wonderful rainfall. Have a great weekend!
Life Is Good, Enjoy!
Gary A. Nathan
That is a question we hear from both Buyers and Sellers who are asking about the current real estate market, and as one might expect we get all kinds of opinions from those same folks.
The answer depends upon whether we are talking about the national, regional or local market. It took nine months for the national media to report the housing slowdown that started in the summer of 2005; the popping of the residential housing bubble is not exactly new news and yet that is what many customers talk about.
In many of the hot markets it was the “investors” who drove the pricing and once they moved out of those areas the supply and demand for houses became more balanced. To a lesser degree we find that to be true in our local market however we do not experience the roller coaster type ride. Locally I continue to be very optimistic.
Buyers will always be fearful they are paying too much and sellers will be fearful they are leaving too much money on the table. What’s happening is that buyers are more careful in their search and discovery process, and are more patient as they go through the due diligence to be sure the property meets their needs and expectations. Sellers need to price their properties appropriately, provide loads of information to simplify the process for the buyers and stage their property in the best possible manner.
What’s happening locally is that we are blessed with thousands and thousands of acres of lakes, woods and fresh air which attract many great folks to the area. If you happen to be visiting this weekend, don’t miss the Rib and Brew Fest on Sunday in downtown Hayward. Forecast is for beautiful fall temperatures in the 70’s and a slight chance of wonderful rainfall. Have a great weekend!
Life Is Good, Enjoy!
Gary A. Nathan
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