The total number of residential sales in our Lakes Region of New Hampshire list of towns came in at 69 homes exchanging hands in May. That is up slightly from the 65 homes sold last May. The average price of the homes that sold dropped from $361,085 last May to $258,828 and the median price also dropped from $240,000 last May to $187,000 this May. Again, this is primarily due to what is selling with 57% of the homes selling under $200,000 this May compared to 37% under $200,000 last May.

One thing different was that of the 39 homes sold below $200,000 there were only 9 bank owned properties, so for once the majority of the homes sold in this price range were privately owned. It is nice to see the owner occupied homes selling in more numbers. It is also nice to see some Winnipesaukee waterfront sales. There were actually six waterfront transactions, starting at a low of $325,000 for a 2 bedroom mobile home with 155 feet of frontage in Alton up to just over $2 million for a 4,000 square foot contemporary with 230 feet of shorefront right in the bay in Center Harbor. The other four waterfronts were in the mid $600,000 to $800,000 range and seemed to offer some good values for the buyers.

There could be some additional great news this fall for home buyers if one real estate agent turned US Senator has his way. Senator Johnny Isakson of Georgia, who was a real estate broker in Georgia for over 30 years,  has introduced a new bill in the US Senate that would almost double the current $8,000 tax credit for first time buyers to $15,000 and expand the program to all home buyers. The bill also eliminates the income cap of $75,000 for individuals and $150,000 for couples, would apply to multi-family homes if the property is to be used as the borrower’s primary residence, and would extend the tax credit for 1 year from the date of signing the bill. The current $8,000 tax credit, which was for first time buyers only (or someone who has not owned a home in the past 3 years) is set to expire at the end of this year and has been very effective in increasing sales of starter homes. This bill is intended to help people looking to buy or trade up to larger homes as that is a segment of the market that has been hit very hard. This bill has bipartisan support and is also backed by the National Association of REALTORS® and the Washington based Business Roundtable, an organization made up of 100 chief executive officers from around the country.

There is also a bill in the House HR 2801, Home Ownership Moved the Economy Act 2009 that proposes to extend the existing $8,000 tax credit to anyone that purchases a new principle residence through Jan. 1, 2011. Time will tell if either of these bills pass but they would definitely create a much needed boost for the troubled housing market.

Residential Homes Sold May 2009

Report covers the towns of Alton, Barnstead, Belmont, Center Harbor, Gilford, Gilmanton, Laconia, Meredith, Moultonborough, New Hampton, Sanbornton, and Tilton. Compiled from the NNEREN MLS System.

398 Morrill St, Gilford NH MLS #2779029

Offered at $499,900 

This unique 4 bedroom contemporary home was built utilizing insulated concrete exterior walls which provide tremendous energy savings on heating and cooling bills. Savings of 30-70% in energy consumption can be expected plus there is a 75% reduction in outside air infiltration which cuts down on dust and allergens. The home is also three times quieter than a conventional wood frame home.

This brand new, 2,400 square foot home features high end amenities and quality craftsmanship throughout.  Inside there is a unique custom kitchen with granite counters and high end stainless steel appliances including center island with gas cook top and wine cooler. The open concept layout flows easily into the dining and great room areas that offer nice mountain views and plenty of light. The cathedral ceiling in the great room is finished in wood. The flooring in this area is tile and bamboo. There is also a first floor den with cork flooring in keeping with the green home concept.

Upstairs is a large master suite with a private deck. The master bath features a vanity with a granite countertop and double sinks and large tiled shower. There are three additional bedrooms and laundry on this level. Cork, tile, and bamboo flooring are used throughout.

The walkout basement has a large family room that would meet the entertaining needs of any family.

All levels have in-floor hot water radiant heat including the garage. Central air conditioning is provided using a state of the art small duct/high velocity system. The house is wired for surround sound and is equipped with an alarm system.

The home is located on a gently sloping 1.35 acre landscaped lot in a convenient country location in Gilford, N.H.

Last week’s report was on why buyers aren’t buying.  As I had mentioned, in the towns in our Lakes Region of NH report, which includes all of Belknap County plus Moultonborough, there is about 21 months worth of residential inventory on the market. Six to seven months worth of available inventory is considered to be a normal, healthy market. So what does it take to sell your house in this market? I’ll take a wild guess here but I bet the answer is the correct price. To get a sense of where you might need to price a house in order to sell in this market it might help to look at what the average sales and asking prices of homes are and see how they compare to their assessed values. It is important to understand that different towns will have different average sales to assessment ratios, but for this exercise I am just trying to get an overall view of what is going on.

In the past 6 months there were 289 residential sales in these towns. Out of those 289 sales, 176 of those listings reported the town’s tax assessment in the MLS system so that I could actually do a comparison of the sales prices to assessments. That should be a pretty good representative sampling. I suppose I could look up the rest of the tax assessments, but it would take a considerable amount of time that I don’t have as I am actually trying to sell some real estate! Of those 176 homes that sold the average sales price was 88% of the town’s tax assessed values and the homes sold for an average of 93% of the asking price. They sold from as low as 28% of assessed value to 215% of assessed value (for a waterfront). This is the interesting part:

66% of the homes sold at or less than 88% of the assessed value.
83% of the homes sold at or less than 100% of the assessed value.
Only 17% of the total sold over 100% of the assessed value .

Eureka! Clearly the data points to the fact that the homes that are selling are the homes that are priced reasonably close to or below the town’s tax assessment. Price and value really do matter if you want to sell a house. Of those 30 homes selling over 100% of assessed value, 10 homes were priced under $200,000 with the remaining all leaning toward the higher end markets and waterfronts. You can bet the homes that did sell over assessed values were nicer properties and had something going for them that caused the buyer to be willing to pay more for the property. It could be a more desirable location, much better than normal condition, water access, waterfront, or a view.

Now, looking at the 1199 listings currently on the market as of June 9th, there were 685 listings that had the assessed values in the MLS system. The average list price to assessed value was 123%! That’s quite a bit higher than the average sales to assessment ratio of 88%. There were some pretty crazy ratios at the top end. Ten listings were over 300% of assessed value, so even if you back those out as being way out of the norm, the ratio still comes in at 116% of assessed values. When you break down those 685 listings:

18% of the homes are listed at or below 88% of the assessed value
44% of the homes are listed at or below 100% of the assessed value
56% were listed over 100 % of the assessed value

Looking further, 23% of the homes were over 120% of assessed values and 13% of the homes listed were 1isted at 140% of assessed values. So if the average ratio is 88% for sold homes, what is realistically the chance of getting 110, 120, 130, or 140% of the assessment on an average home? The chances of a sale are pretty slim for those properties and that is why our inventory is so high. My guess is that at least 40% of the listings in this scenario are overpriced. Probably more. Again, there are above average homes that sell higher than 100% of assessment but it usually takes something unique, pristine, or otherwise extremely desirable to pull it off.

There are a lot of other factors affecting the real estate market including the state of the overall economy, job losses, and overall uncertainty. But if our current inventory was reduced at least 50% by removing the most over priced listings and under motivated sellers the market would definitely improve. Supply and demand is one of the basics in our economy and the 21 months worth of inventory we have will not be reduced by some miracle or real estate hocus pocus. I am not sure what it will take to get more buyers back into the market place. But I do know that they won’t come back to buy a home that is priced too high.

Info compiled from the NNEREN MLS system.

 High Quality Custom Ranch, MLS #2781979

144 Bay Road, Sanbornton, NH  offered at $243,000

 This like-new, open concept, three bed room home has many custom, high end features that aren’t normally found in smaller homes. The pride of ownership is very evident throughout this property.  There is a bright, well appointed kitchen with corian countertops, stainless steel appliances, center island/breakfast bar, tile flooring, a huge pantry, accent lighting, and French doors leading to the back yard.

The comfortable living room has cathedral ceilings and beautiful hardwood floors. The master suite and two bedrooms also have hardwood flooring and the two bathrooms are tiled.  In-floor radiant heat is supplied to the main living space and bathrooms by an energy efficient Buderus boiler. Should there be a power outage, a propane fired generator will automatically provide power. The home also has a central vac and water softener system.

Exterior finish is meant to be maintenance free with cement board siding, Hardy Board Trim, and trex decking. Up top there are 30 year architectural shingles and seamless gutters. A paved drive leads to the two car garage that is finished with plywood on the interior. The home sits back from the road on a nice .8 acre lot with a level back yard that won’t take too long to mow. That allows for much more time to sit out front on the charming farmer’s porch and enjoy the weekends!

The property is located in the quaint town of Sanbornton, NH with easy access to all Lakes Region of NH amenities. It is a short drive down the street to the town beach on Lake Winnisquam and just a few minutes to downtown Laconia or shopping at the Tanger Factory Outlet Stores just off Interstate 93.

The Lakes Region of NH residential home inventory has ballooned to 1170 listings on the market as of June 1. Last June there were 1128 homes on the market. That’s bad enough, but when you look at the sales over the previous 12 months we are looking at a 21 month supply of inventory compared to 17.5 months last June. This is not good news if you are trying to sell your home in this market.Real estate is not a lot of fun for anyone right now including sellers, buyers, agents, appraisers, inspectors, or lenders. Mostly because there are so few buyers. Why are consumers staying on the sidelines rather than out there buying? And why do those that venture into the market have such a hard time? With a huge inventory to choose from, interest rates at historic lows, an $8,000 tax credit for 1st time buyers, and great bargains available right now it should be a perfect storm for buyers. But it is little more than a drizzle. This is my take on why many people aren’t buying.

You can blame the lack of sales on hard economic times, the uncertainty, or the daily dose of bad news coming out of the boob tube and you’d be partially right. No one feels good about the economy right now so it is tough to get the nerve up to buy something as huge as a new home unless a buyer feels like he is getting the steal of the century. But I think a lot of people aren’t buying because it is just not fun anymore. The market is very confusing right now and there’s a lot of conflicting data. It is hard to get excited about buying when you can’t figure out where the market really is. So it is not surprising that some buyers can’t recognize a good deal even when it whacks them in the face. Some buyers think that they should make ridiculous low offers on what are already reasonably priced properties just to be on the safe side. I’m not saying buyers shouldn’t get the best deal they can on a home. They should and it is their REALTORS® job to help them get it.

But buyers need to understand that they are buying the home, not the “deal”. It is almost like buyers have a misconceived notion, probably fueled by news reports from California or other hard hit areas, that all houses should be half price. REALTORS® need to do a better job explaining that home ownership is a long term investment and educating the buyers in the realities of pricing and values. The process would be a lot more successful and FUN if buyers were confident that they were purchasing the right home for them and getting a good value as well.

Think about how you’d feel when you go to buy that brand new, shiny, candy apple red convertible that you have always wanted (this is a guy thing mostly, so ladies stay with me here). Let’s say it is a Corvette (GM needs the help). You have always wanted one, you’ve studied and researched the options, the engine, and you know what to expect for a price. You shop and find two or three sitting at the dealerships and pick the one you like the best and buy it. There is excitement, anticipation, and you can’t wait to pick it up and go for a spin. You got want you wanted at a price that you knew was fair. Boy, this is fun! Now compare that to buying a 4 door sedan for your business and you have to concentrate on the deal only because the car doesn’t matter. It is only about the deal. Two total different experiences in buying. One is fun and fulfilling and will brings you joy and the other really means nothing other than you bought a car and you can say you got a good deal. Buying a home should be fun and exciting too! And it will be if buyers, with the help of their real estate agent, approach the process in the right frame of mind.

So start your day of home searching by doing something like going to have ice cream at Ben and Jerry’s (preferably with your agent) to set the proper tone for the day. Then go look at the properties that really fit your needs and your pocketbook. Focus on finding the house that excites you the most and that you’ll be happy in for years to come rather than just finding a deal. That sounds a lot more like fun!

Residential Homes Available June 1, 2009

Report covers the towns of Aton, Barnstead, Belmont, Center Harbor, Gilford, Gilmanton, Laconia, Meredith, Moultonborough, New Hampton, Sanbornton, and Tilton and is complied using NNEREN MLS data.

So what does it take to sell your house in this market?

Better yet, what does it take to sell your home quickly in this market? Since January 1, there were a total of 18 residential homes that have sold in 20 days or less in the Lakes Region of NH Market Report towns(all of Belknap County plus Moultonborough). Twenty days or less is pretty darn quick! ( I’m really talking about how long it takes to get a buyer to sign on the dotted line here—not the total time to actually transfer the property) Is there anything in common with these listings to make them sell so fast? The first five on the list were all bank owned properties and sold for $125,000 or less. So chalk those up to a bargain basement prices. I’m not sure if they were really bargains or not but a cheap asking price brings buyers regardless. There was one other bank owned in water access property in Moultonborough that sold for $345,000 which was actually more than the asking price of $299,900. Multiple bids resulted in a much higher than asking sales price. In other words, someone saw the value and was willing to pay for it.

There were four listings that sold between $100,000 and $200,000 that were all private sales and were at or below assessed values.  Three homes that found buyers very quickly were in the $200,000 to $300,000 price range. Two were water access properties in very nice condition. The property at 49 Joanna St. in Moultonborough sold for $207,000 which was $83,000 less than the assessed value. The other water access property was a charming log cabin with water views and beach rights to Kanasatka. There was also one older home in downtown New Hampton that was listed at $259,000, sold for $210,000, and was assessed at $261,210.

The next two homes on the list sold in 6 days and 12 days…kind of. Both of these homes had been listed previously. One property at 385 Lower Bay Rd in Sanbornton had been on the market since 2007 and had been listed for as high as $629,900.  This 1789 vintage farmhouse on 61 acres of land had a motivated seller. When the property was re-listed at the  reduced price of $487,000, a deal was put together in just 12 days for $450,000. The other home in South Down Shores at 88 Crimson Drive seemed like a good deal at $379,000 when it was listed last year and was an even better deal at a reduced price of $349,000. When the owner agreed to a potential lower offer the expired listing was revived and a deal quickly struck at $315,000.

At the top end of the list were two very nice waterfronts in Moultonborough. The property at 63 Black Cat Island Rd was originally offered at $999,000 but was  sold for $825,000 in just 17 days. The property is assessed for $943,000. Good deal, quick sale. Over at 251 Eagle Shore a  $1.8 million, 4500 sq ft estate with 100 feet of frontage  sold in 4 days for $1.65 million! So high end properties can sell quickly too.

Are there any common threads here?  One. No, not price: value. Value is created when a price is set on a property that makes it desirable to buyers. No matter what the home or  price range is, if buyers can see that they are receiving real value in exchange for the money paid they will likely make a purchase quicker.  Fear of losing a good deal can be a great motivator.  It also helps to have desirable features such as water access or a view to help enhance the value but obviously we aren’t all that lucky.  So if you really need to sell your property and you can afford to lower the price so that you can be the best value in town you should do so. If you can’t adjust the price then you need to look at how you can create more perceived value in your property by making it the absolute best that it can be for potential buyers. Today’s buyers are definitely looking for value.

MLS #2779789 - Offered at $329,000

46 Smoke Rise Rd, New Hampton, NH

If you are looking for a property in the beautiful Lakes Region of New Hampshire, than you should check out this outstanding high quality contemporary lake home. This home is truly one of those “must see” properties that you hear about.

Sitting nestled in the woods on a private well landscaped .71 acre lot with a view of and access to Pemigewasset Lake this contemporary style home is perfect for a vacation retreat or year round living.  Located in the charming town of New Hampton , it has easy access to I-93 and all the Lakes Region attractions.

The residence has recently been renovated to include fine quality flooring (wood, granite, marble and carpet); cherry wood kitchen cabinets, a granite island top, top of the line appliances, built in office center, wine rack and cook book shelves in the kitchen; polished granite hearth and gold accented gas fireplace in the living room.   

This home boasts 2 master bedrooms, each with a 4 piece ensuite bathroom, sliding glass doors to a private balcony or deck.  A large office/den with walk in cedar closet can be used as a 3^rd bedroom.  A water softener and deep water well pump complete an excellent water supply.  The oversize one car garage has a built in work bench and an overhead door accessing the attic.  The garage has been dry walled and painted. 

The landscaping includes a large rock garden with many shrubs and perennials, an herb garden and a flagstone walkway.  There are many other upgrades and features.  Call for a private showing, you will not be disappointed.

DOM or DOB?

There were 50 residential homes that changed hands in April of 2009 in our Lakes Region of NH list of towns. That is up a little from the 46 that sold in April of 2008, so at least we are holding our own in total unit sales. The average sales price in April 2009 dropped compared to last April from $419,219 to $266,598. The median sales price also dropped from $245,100 to $190,000. This can be mostly attributed to more lower priced homes selling this year compared to last. Sales of homes under $200,000 almost doubled with 28 homes changing hands in April of 2009 compared to just 15 in April 2008. Mid-range home sales, those between $200-400,000, are down with 15 homes sold this April compared to the 22 recorded last year. The average “Days on Market”, or the average time that it took to sell a home, in April came in at 133 days which was virtually unchanged from last year.

So what does the statistical term “Days on Market” (DOM) mean? This number refers to the average of how long a property has been on the market or how long it took to sell a home depending on which report you look at. This number is actually somewhat inaccurate as it only represents the number of days a property has been on the market with the current real estate agency. Many properties have been listed for sale several times with different agencies. Some listings come off the market and come back on the market six months or a year later. Our MLS system has no way to calculate the DOM for all the times a property has been offered for sale and therefore the actual DOM would be higher, especially in these tough times.

What would be really interesting is if there was actually a way to track every buyer that goes out looking at homes from start to finish just like the MLS system tracks housing sales. I would venture a guess that the DOB (no, not “date of birth”, let’s call it “Days Out Buying”) for all the people that are shopping for a home would be more than the DOM numbers in our reports. Tracking buyers is never likely to happen, but who ever thought that the US Government would be selling Chryslers. A lot of focus is put on things from the seller’s perspective, but a “Days Out Buying” statistic should be pretty revealing and would show how much time your local REALTORS® spend to help buyers purchase their new home.

So while an average Days Out Buying statistic would be interesting, there is nothing average about any buyer. Just like the homes that they look at every buyer is unique. Buyers all have different motivations, needs, and timelines. Some know exactly what and where they want to be, some think they know but change their minds five times before they buy, some don’t have a clue, some can be totally unrealistic, and unfortunately (at least for the agents involved) some are only dreamers, tire kickers, or just plain curious. Buyers can be deliberate and methodical, or on again off again, and many will never buy anything anywhere on this planet. While all these statistics can used to measure how well the market is doing, they never can quite measure the complexities of what a real estate transaction is all about and the different personalities and motivations on the buyer and selling sides. Only REALTORS® can do that…

Residential Homes Sold April 2009

Report covers the towns of Aton, Barnstead, Belmont, Center Harbor, Gilford, Gilmanton, Laconia, Meredith, Moultonborough, New Hampton, Sanbornton, and Tilton

MLS # 2751552  offered at $1.9 million

If you are looking for a very special, private, waterfront property compound that is all about family living on the lake and enjoying all that Lake Winnipesaukee has to offer then 178/194 Channel Lane in Laconia, NH could be for you.

Virtual Tour…

Enjoy the privacy of being the last property at the end of the road! There are two separate lots totaling .75 acres with 581 feet of shorefront.

The grounds are beautifully landscaped with manicured lawns, brick walkways, and mature plantings. There are captivating views down Paugus Bay from just about ever corner of this fine property.

Out front you’ll find the boathouse that has two 11.5’ x 35’ slips inside with 2 Pirana electric lifts. There is docking for two more boats outside giving you plenty of space for the toys.

Just past the main home is an 800 square foot guest cottage with two bedrooms, its own kitchen, and the best view down Paugus Bay on the lake!

Perfect for accommodating your distant relatives, the unruly kids, or paying guests!

Roche Realty Group Roy Sanborn | 97 Daniel Webster Highway, Meredith, NH 03253
(ph) 603-677-8420 | (cell) 603-455-0335 | (fax) 603-279-7604 | rsanborn@rocherealty.com

We’ll get straight to the results. The votes are in and the new American Idol is…I mean the winner of the Lakes Region View contest is… 53 Trailview Drive in Gilford. After exhausting deliberations, my expert panel of judges: Jen Serrano from Wells Fargo Mortgage, Wanda Keenan from Paramount Settlement Services, and Sheryl Foss from Image Appraisals, cast votes for their two top choices. These judges are all in businesses that are obviously related to real estate and are connoisseurs of the many vistas in the beautiful Lakes Region of NH. The view from Trailview gathered three votes, with properties at Serenity Lane and Veasey Shores in Meredith and Whispering Wind in Center Harbor all getting one vote. In the end, the property on Trailview had the most going for it and included views of Gunstock, the Belknap Mountains, Gunstock Acres below, Lake Winnipesaukee, and the Ossipee Mountains beyond. This is a truly amazing panoramic view which the photo above does not begin to do justice to.

All of the views that were entered are extremely beautiful and they certainly enhance the values of the properties that they can be seen from. But beyond making a property more desirable (and valuable), a beautiful view provides a great deal of serenity and enjoyment that is really hard to put a price on. There is nothing more peaceful than sitting by the water and watching the sun set or gazing out at the lake and mountains from your hilltop retreat.

There are thousands of truly beautiful views in the Lakes Region and I received but a handful as entries in this contest. I will continue to post any views sent in to me here on this website so please keep them coming.