Spring has not sprung and the ice is still getting thicker but, SOLD signs are a sprouting on the Waupaca Chain O’ Lakes Waterfront!

Is having two Chain Sales this early in the year a premonition of the type of summer Chain sellers are going to experience this year – when the ice finally sinks and the real “selling season” finally gets here?

This property just sold on Limekiln Lake – Waupaca Chain O’ Lakes after being on the market – on and off – for a very long time.

The home has a detached garage, 1,740 Sq Ft on two floors, a recently remodeled kitchen and bath, 3 bedrooms and 2 full baths. Two decks provide a great view of the lakes.

60 feet of lake frontage with and a nice lake bottom will help provide the new owners lots of summer time fun.

The out of town buyers were represented by Steve Huhta and ReMax Lyons Real Estate.

It is rare that properties sell on Waupaca Chain O’ Lakes while the ice is still on the lakes! However, this one occurred in March while the lakes were still making ice. This property had been on the market for a very long time on Columbia Lake.

The parcel has 12 feet of frontage and was last listed at $349,000.

This Waupaca Chain home has 1,842 feet of frontage, 4 bedrooms, a two car garage and faces south on Columbia Lake. The home was completely remodeled and was a full time Waupaca residence.

Steve Huhta and ReMax Lyons Real Estate represented both the buyer and the out of town Waupaca Chain O’ Lakes waterfront buyer on this property.

For a complete list of all Waupaca Chain O’ Lakes properties for sale please go to www.WaupacaChainWaterfront.com

Spring in central Wisconsin has been coming slowly, but Waupaca Chain O’ Lakes property sales are off to a very fast start!

The Remax Lyons Real Estate team – Steve Huhta and Maryann Jenner have already helped waterfront buyers close on two properties and they have two more buyers with Chain properties under contract ready to close soon. In the Remax Lyons Real Estate office one more Chain property is under contract, and rumor has it that other agencies in town have two additional properties under contract.

The increased amount of sales is unusual – buyers agreeing to buy while the ice is still on the lakes! The temperatures are cool, but chain property sales are hot Hot HOT!

Our local waterfront real estate pattern seems to be following a national trend as reported by RIS Media. The article says, in summary, that as the market continues to shift, vacation home sales are making continuous and stronger waves.

With low prices, stable prices and low mortgage rates in most parts of the country, affluent buyers—or those who have always dreamed of a cabin on a lake—are making their move and purchasing second homes in exotic locations to be used as vacation getaways.

According to the National Association of REALTORS® (NAR), sales of investment and vacation homes jumped in 2011, with the combined market share rising to the highest level since 2005!

NAR’s 2012 Investment and Vacation Home Buyers Survey, which covers existing and newly built home’s sales in 2011, shows vacation home sales rose 7 percent that year.

Some highlights of the RIS Media article go on to explain why the vacation home market is on the rebound: In 2011, there was an 8.8 percent rise in U.S. travel expenditures, and according to the October 2012 Traveler Sentiment Index™, traveler sentiment neared pre-recession levels, within 0.7 points of the October 2007 pre-recession high of 91.1.

People are getting away again, and as the economy stabilizes, many see a standing vacation spot as being a wise investment. Here are statistics on vacation-home buyers, according to the 2012 NAR survey:

• In 2011, 42 percent of vacation-home buyers paid in cash, and 39 percent purchased distressed properties.
• Vacation-home sales accounted for 11 percent of all transactions in 2011, up from 10 percent in 2010.
• The typical vacation-home buyer was 50 years old, with a median household income of $88,600.
• Purchased vacation homes were located a median of 305 miles from the buyer’s primary residence. Thirty-five percent of vacation homes were within 100 miles, and 37 percent were more than 500 miles.
• Typical buyers plan to own their recreational property for a median of 10 years.

“There are lots of investors buying rental properties and second homes right now,” says Goran Forss, a broker in Temecula, California, whose company has had a consistently strong base of investors over the past several years—approximately one-third of all buyers—and has copious amounts of vacation rentals. In Forss’ market, a myriad of investors keeps the inventory scant.

NAR’s national survey showed that 91 percent of vacation-home buyers planned to rent their new home out within the next 12 months for at least part of the season.

Of this 91 percent, 40 percent plan to rent the home between one and eight weeks of the year, possibly to make a little extra money during the time they won’t be using the property. Thirty-two percent plan to rent their properties between nine and 26 weeks per year, and 27 percent plan to rent their homes between 27 and 52 weeks per year.

“Those (vacation properties) have become more and more popular for the savvy investor and stay booked year round due to our moderate temperature and abundance of sunny days,” explains Forss. In Wisconsin however, the winter snow can be just as strong of a draw for vacationers who want to go ice fishing, snowmobiling or cross country skiing.

U.S. vacation home seekers aren’t solely staying within the country, either. The trend seems to be percolating worldwide. Shannon P. Murree, a real estate professional in Barrie, Canada, says she has seen an increase in U.S buyers looking for additional properties in her market as confidence in the economy grows.

“People are looking at (vacation homes) for their own use, and renting them out weekly during the times they won’t be using them, as well,” says Murree, who notes that she has seen an increase in this trend as of late.

When _ looking for a vacation home, it’s important to understand that lending is different for properties that are not a primary residence. _Lenders are more strict with vacation home mortgages than those for traditional homes, so _ buyers must have immaculate credit—often 720 or greater—and be up-to-date with their primary mortgage.

Additionally, many lenders have been giving out “jumbo” mortgages for vacation and investment properties. Unfortunately, new mortgage guidelines put out by the Consumer Financial Protection Bureau will go into effect in 2014 and may put an end to these popular loans. This is something to consider if you had planned to finance a second home this way.

If you’re interested in purchasing a Chain O’ Lakes property to use as a rental vacation home, even if it’s rented out part-time, remember you can trust me as the savviest agent in the area when it comes to waterfront property. My team and I have many years of experience living in and playing on the lakes year round, and we will ensure a smooth transaction, providing you with a wealth of information regarding your new investment venture! Currently we manage chain rentals for out-of-town owners, we have the number one Waupaca Chain O’ Lakes vacation rental web site.

It got cold and the wind blew Saturday nigh – and some docks on the East shore of Miner Lake – Waupaca Chain O’ Lakes – “Popped”

The Chain O’ Lakes area saw a big increase in waterfront home sales in 2012 compared to the previous year, as mentioned in a previous post here. But there has been more action than just keys being exchanged that indicates property values are on the rise. In 2012 quite a few home remodeling projects were started around the Chain. A trend like this shows the confidence neighbors have in their properties and neighborhood; they’re investing towards a lasting future in their lake home.

We’re also making room for new neighbors. Three brand new homes began construction last year. A new house was just completed on Dake Lake, and although it isn’t spring yet, a new home construction project is just sprouting out of the ground on Long Lake. On Miner Lake, a home was moved away so another new home can be built in it’s place.

One home along the Chain went missing last year–a home purchased in late 2012 was torn down. 2013 may see the construction of a new home on that now vacant lot?

It seems that optimism in people’s real estate investments is spreading across the Chain, and will likely trickle down to those many buyers who are always looking for the right time to invest. With so many new homes being built and current homes being remodeled, property values around the Chain are could be on the rise. Those “just looking” buyers are going to have to make a move if they want the most for their money, and sellers can start resting a little easier because of the confidence people have been gaining in the Waupaca Chain O’ Lakes area.

Once the ice has melted and it’s time to get on the boat again, cruise around and check out all the new home construction, landscaping jobs, and remodels. It’s always fun and inspiring to watch our area grow and change with the seasons.

This past summer was hot and dry around the Waupaca Chain O’ Lakes. As a result, it was not a great year for farmers who planted corn in our area. But, the Chain O’ Lakes property sellers had a great year, as they sprouted a record number of Sold signs from the For Sale signs they’d planted.

As we close out the year, 22 Chain properties changed hands in 2012 which compares to only 8 properties last year that were able to blossom into a sale.

During the summer of 2011, the number of properties offered for sale peaked at 54. While the current number of Chain homes for sale change weekly, it has been holding around the lower to mid-thirties lately.
Does the lower number of homes for sale compared to a higher volume of sales mean we’ve switched from a buyer’s market to a seller’s market? Which leads to the next question: are prices of waterfront properties starting to rise? Answering these questions with a solid “no” or “yes” is premature, but here is some information, analysis of trends, and expert opinion to help you decipher our current neighborhood economic movements.
Of the houses that sold for under $400,000 on the Chain this year, 9 out of 10 sold under the tax bill “fair market value.” Of the few that sold over the tax bill “fair market value,” one was a property that sold to a neighbor without the use of a Realtor’s negotiation skills.

By comparison, in those Chain properties that sold for above $400,000, 7 out of 10 sold at or above tax bill “fair market value.” (If you are counting – these numbers do not add up to 22 sold as one property sold in Camp Cleghorn, so we cannot see an individual tax bill for that property).
At first glance, one might conclude that lower priced properties may have dropped way more in value than mid and higher price Chain properties. This may be true but, it could also be true that the assessors had the properties under $400,000 considerably over assessed. However, if you assume that the assessors were consistent in how they valued properties on the Chain, the lower valued properties are clearly selling for less than seller might have expected.

Prior to the recession, virtually all Chain properties sold above, and some way above, assessed value. I remember one township assessor saying that he raised the value of all Waupaca Chain O’ Lakes properties over 30% on a reassessment just prior to the recession. If prices are in fact down on Chain values as a result of the recession they are, in my opinion, down much more on the lower priced properties than they are on mid and higher value properties. However, I also think that the assessors had lower valued Waupaca Chain O’ Lakes properties over-assessed as the result of raising all Chain properties about the same percentage on a township wide reassessment.

Chain condo sales –
There had not been a sale in the Wingspan condo development in many years. These condos all have the same floor plan and vary only based on interior improvements the owners have made over time. Each Wingspan condo has a $375,000 plus or minus a little – tax bill “fair market value.” A unit just sold at $275,000. Now the other Wingspan owners have a transaction to help them value their own units. And there is another Wingspan condo under a sales contract, so there will be more evidence as to the true fair market value of these units.
So, if we look at the condo sale and the other sales under $400,000 we can conclude that the lower end properties on the Chain have probably dropped in value more (percentage) than the middle and upper valued properties.

As the result of seeing the higher value properties on the Chain selling above the tax bill “fair market value” and some at way above this “fair market value,” we can safely conclude that the better properties on the Chain are holding their value very well.
Because there are still a fairly large number of properties for sale on the Chain, it is probably still a bit of a buyers’ market. However, sellers with higher quality properties – properties in great condition and with better water frontage – may be finding that they have an advantage and can hold more firmly in their price demands once the purchase negotiations begin.
Some folks who try to analyze Waupaca Chain O’ Lakes property sales look at the original listing price compared to the actual selling price when figuring weather values are going up or down. Personally, I don’t put much weight in in this type of analysis and here is why: Recently some sellers asked for my opinion regarding the value of their property. After looking at some comparable properties that recently sold, I concluded $750,000 would be the price a buyer would be willing to pay. The sellers then listed it for $1,250,000. It sold recently for below $800,000. So, did the buyer get a good deal or did the seller get the entire real value of the property?

This scenario is a good example of why buyers and sellers should work with an experienced waterfront property expert who is tracking and analyzing the data all the time. If you would like a complete list of all waterfront property transactions please go to www.WaupacaWaterFront.com and we will get you all the details very quickly. Or, just call or email Steve Huhta 920-889-9989 or Steve@Huhta.com

One thing that we can safely conclude from all the sign planting activity on the Chain this year is that buyers clearly have confidence in the fact that Chain properties will hold their value in the future. If this trend continues, sellers will certainly gain back some of their negotiating advantage as less properties are for sale. Values may not be rising on the Chain like they were each year prior to the recession, but they clearly are not going down on the middle and upper value range properties.
Again, 2012 was a very good year for Chain waterfront sellers looking to plant a sold sign in their yard. The question now is, will the bumper crop of sold signs around the Chain continue or will 2012 be remembered as just an unusually hot summer for sold sign growth?

We post tons of valuable Waupaca Chain O’ Lakes area news and information on our Facebook page – search Waupaca Chain O’ Lakes and look for Steve Huhta’s business page – click the like button so you will see all of our postings the moment they appear. Whenever a sale occurs on the Chain we post the data immediately on each of these sites. We welcome you to join the loop and understand what’s happening in Chain real estate.

Prior to 2012, it had been a very long time since a condo unit sold in Wingspan on Round/McCrossen Lakes but, a second unit has now sold in a matter of just a few months.

The unit that sold has 1,550 sq Ft of living space on two floors and shares over 1,200 feet of frontage spanning over McCrossen and Round Lakes.

This condo was first listed at the end of November 2012 at $289,000 and sold with the same listing price.  This was obviously a very quick waterfront property sale.

Again, 2012 was a very good year for Waupaca Chain O’ Lakes property sellers as almost 3 times as many properties sold in 2012 compared the year before.

The “fair market” tax bill assessment was $370,500 at the time of the sale.

If you would like more information about Waupaca Chain O’ Lakes properties for sale or more specific information about what Chain properties are selling for please EM or call Steve Huhta at 920-889-9989 or Steve@Huhta.com

Here are a few charts that relate to the previous post about Waupaca Chain O’ Lakes property sales:

Again, the number of properties that changed hands in 2012 was way ahead of any of the previous years.

This chart shows that Chain properties selling below $400,000 sold for only 73% on average of Tax Bill Fair Market value assessment where as in 2007 this same category of homes sold at 104% on average of there tax bill fair market value. This is obviously a big change!

By comparison, Waupaca Chain properties selling for over $400,000 still sell on average for more than the tax bill fair market assessment and very close to the percentage they sold for on average in the past.

This one is not going anywhere…. Rather, it is getting a fix,, check back for the full story but, these are neat pictures.

In less than one week from the closing of the old downtown Kwik Trip store the place is being taken apart.