2008 Market results... An overview

As we enter the New Year with hope and optimism; one can’t help but to pause to reflect on 2008. A year that saw a historical Presidential election; almost unprecedented economic turmoil and a housing market spinning out of control, or so the national media would have you believe. Now, I am not suggesting there are not areas of the country that have been hit hard nor am I suggesting our markets were all roses. However, the national outlets would have you believe there is one market, a national market in which cities and regions are inter changeable and that simply is not the case.

Within the Rhinelander area market(1) there are three very distinct markets with distinctly different trends. Homes within the city limits of Rhinelander(2) have remained remarkably consistent over the years with the median home values(3) appreciating a modest 2.8% annually based on the past eight years. This segment of the market however, did not escape the economic turmoil of 2008 completely unscathed; median home values experienced the first decrease in eight years dropping slightly by 3.1% to $82,400.

Off-water country homes(4) have realized an average annual appreciation of 7% resulting in a median home value of $156,500. Unfortunately, after seven straight years of appreciation, the last two being double digit, this segment of our market experienced a decrease in median home values of 25.2% to $117,000.

Water front homes(5) continued to perform well, in spite of the 2008 economy realizing an increase of 19% in median home values to $298,900 by the end of the year. This segment of the market has a significant amount of vacation/investment homes which are owned by a populous relatively unaffected by general economic influences.


For additional information including tables and graphs please contact me at mcfarlandp@firstweber.com.



(1) Rhinelander market, for this article, is defined as; City of Rhinelander; Crescent; Newbold; Pelican; Pine Lake; Stella and Woodboro townships.
(2) City homes include single family detached residence regardless of site influences. Does not include; vacant lots, condos, mobile homes, duplex or other multifamily dwellings.
(3) Median home values; defined as the median sales price of homes in the defined categories
(4) Off-water country homes include single family detached homes located in the above mentioned townships with no frontage on a river or lake. Does not include; vacant land, condos, mobile homes, duplex or other multi-family dwellings
(5) Water front homes include; single family dwellings with direct access frontage to either a lake or river. Does not include; vacant land, condos, mobile homes, duplex or other multi-family dwellings

Flipping Foreclosures (Part 3)

If you haven’t heeded my not so subtle hints about using a Realtor, listen up; Call a Realtor. He or she will walk you through the process of writing the offer and can give you valuable advice and market data that you can’t get anywhere else. Ask about Buyer agency, we will tackle this topic at a later date.

In part 1, I stated that real estate has traditionally been a safe investment and that is true, however the allure of flipping is the relatively quick return on your investment. Real estate, at least in our market, has never been considered a highly liquid investment. As a result; be very cognizant of that if you must finance any part of your project.


The institutional owners of these foreclosed properties do not like to dink around with “cluttered” offers. So what do I mean by cluttered? Offers with contingencies. So, when writing an offer on one of these properties do so with as few contingencies as possible; you should have had any inspections done prior to developing your business plan; if financing be prepared for short time-lines for appraisals and loan commitments.

Congratulations! You are now the proud owner of a house that needs your attention. Now you pray that you did your home work and there are no surprises lurking behind the walls or under the floors. Good Luck!

Remember to give me a call in a couple of months when the work is all done and you are ready to sell.



Pat McFarland
Broker Associate