The big stories for 2011 regarding real estate values and activity at Lake of the Woods were: 
Number of Homes for Sale | Number of Homes Sold - On average, there were 7 homes available for sale at any given point in time in 2011; whereas, in 2010 there were 15. So, there were 53.3% fewer homes listed for sale in 2011; a dramatic difference. Notwithstanding there were significantly less homes for sale, the number of homes sold in 2011, at 18, was the same as in 2010. This is strong evidence that Lake of the Woods is a very desirable community and that homes are priced right. Prices – The average sold price per square foot actually went up 2.9%; $114,000 in 2011, $110,000 in 2010. The median sold price went up ever so slightly, just $1,000 or 0.4%; $234,000 in 2011, $233,000 in 2010. Median price is generally considered a more reliable barometer of price valuation than average price per square foot. Accordingly, relying at a nominal 2011 median price increase of only 0.4%, any reasonable construction leads to the finding that prices have not so much increased, rather, they have stabilized. Months of Inventory - The months of inventory, available supply of homes for sale, based on closed sales, was at a historic low in 2011. On average there was only a 3.5 month supply of homes for sale at the Lakes. 6 months is generally considered a balanced market between buyers and sellers. In a typical market, a 3.5 month supply would favor sellers and result in prices increases. However, this is not a typical market. Nevertheless, as indicated above, there was a very modest uptick in sold prices. Average Days on the Market | Spread Between Selling Price & Original List Price --- For homes which sold in 2011, there was, on average, only a 6% difference between the original list price and the actual sold price. This is a very good thing. It indicates that at Lake of the Woods, successful sellers and buyers are seeing home values through similar lenses; expectations and reality are in alignment, creating a stable and balanced market. Sellers often think that they need to list high in order to leave room to negotiate and get the price they want and/or need. But, it doesn’t work that way. As a general rule, buyers don’t begin to seriously consider a property and negotiate until the list price is within 10% of the actual selling price. It appears that homeowners at Lake of the Woods “get it”. The difference between the selling price and the original list price was only 6%. These sellers understand that we don’t set the price … the market does. A property will not sell for more than it’s worth. Buyers know what that is, the information is available for all to see and decipher on the internet --- which, by the way, is where 94% of all buyers begin their search.
- There were significantly less homes available for sale
- Nevertheless, the number of homes sold remained the same.
- Prices have stabilized.
- Right priced homes --- there was less than a 10% difference between original list price and sold price.
Number of Homes for Sale | Number of Homes Sold - On average, there were 7 homes available for sale at any given point in time in 2011; whereas, in 2010 there were 15. So, there were 53.3% fewer homes listed for sale in 2011; a dramatic difference. Notwithstanding there were significantly less homes for sale, the number of homes sold in 2011, at 18, was the same as in 2010. This is strong evidence that Lake of the Woods is a very desirable community and that homes are priced right. Prices – The average sold price per square foot actually went up 2.9%; $114,000 in 2011, $110,000 in 2010. The median sold price went up ever so slightly, just $1,000 or 0.4%; $234,000 in 2011, $233,000 in 2010. Median price is generally considered a more reliable barometer of price valuation than average price per square foot. Accordingly, relying at a nominal 2011 median price increase of only 0.4%, any reasonable construction leads to the finding that prices have not so much increased, rather, they have stabilized. Months of Inventory - The months of inventory, available supply of homes for sale, based on closed sales, was at a historic low in 2011. On average there was only a 3.5 month supply of homes for sale at the Lakes. 6 months is generally considered a balanced market between buyers and sellers. In a typical market, a 3.5 month supply would favor sellers and result in prices increases. However, this is not a typical market. Nevertheless, as indicated above, there was a very modest uptick in sold prices. Average Days on the Market | Spread Between Selling Price & Original List Price --- For homes which sold in 2011, there was, on average, only a 6% difference between the original list price and the actual sold price. This is a very good thing. It indicates that at Lake of the Woods, successful sellers and buyers are seeing home values through similar lenses; expectations and reality are in alignment, creating a stable and balanced market. Sellers often think that they need to list high in order to leave room to negotiate and get the price they want and/or need. But, it doesn’t work that way. As a general rule, buyers don’t begin to seriously consider a property and negotiate until the list price is within 10% of the actual selling price. It appears that homeowners at Lake of the Woods “get it”. The difference between the selling price and the original list price was only 6%. These sellers understand that we don’t set the price … the market does. A property will not sell for more than it’s worth. Buyers know what that is, the information is available for all to see and decipher on the internet --- which, by the way, is where 94% of all buyers begin their search.
