Wanna find a deal?

The total number of residential sales for May in our Lakes Region of New Hampshire  communities came in at 65 units which is down just a bit from last May’s total of 69. The average sales price is holding its own at $361,085 compared to $349,588 last May. A third of the sales were under $200,000 and there were four sales over $1 million.

There are lots of homes on the market so it stands to reason there are some great deals to be had. So what makes a property a good deal and how can you find a real bargain?  One way is to look at the price per square foot which obviously varies depending on the age, quality, size, and characteristics of the property. Another is to look at the percentage of sales price compared to assessed value. When looking at this ratio you also have to take into consideration how recently a town wide assessment was done.  In either case the lower the price per square foot or the lower the percentage the better. I ran a couple of reports to see which properties stood out as potential good values. On a price per square foot basis here are some potential deals: a 3500 sq ft split entry at 781 Stage Rd in Gilmanton for $219,900 ($62.83 sq/ft), a 5,780 sq ft contemporary at 34 Vincent Dr in Gilford for $349,900 ($60.54 sq/ft), a 2,720 sq ft Colonial at 525 Meadow Pond Rd in Gilmanton for $205,000 ($75.37 sq/ft), a 3,950 sq ft Victorian at 63 Whipple Ave in Laconia for $299,000 ($75.70 sq/ft), and an older, 2,400 sq ft cape on 14 High St in Meredith for $179,000 ($74.58 sq/ft).

Some potential good deals based on asking price compared to assessed value include: a 1,482 sq ft New Englander at 4 West St in Tilton with an asking price of $119,900 (63% of assmt), a 2,270 sq ft contemporary at 68 Drummer Trail in Laconia at $284,900 (65% of assmt), a 3,799 sq ft colonial at 7 Ambrose Rd in Meredith at $314,900 (71% of assmt), and a seasonal waterfront cottage at 13 Loon Cove Rd in Alton for $790,000 (71% of assmt).

Are these good deals? That all depends on the condition of the property and whether the property suits your needs and lifestyle. The only way to know for sure is to view  the property and determine if it is in good shape. It may very well be priced low because it needs some repairs or TLC, but that is a good way to earn some pretty quick equity if you buy it right and fix it up. Once you have found a property you want to buy, make sure to have your agent print out comparable properties to determine where the property should really be priced.

Residential Homes Sold May 2008

Towns of Alton, Barnstead, Belmont, Center Harbor, Gilford, Gilmanton, Laconia, Meredith, Moultonborough, New Hampton, Sanbornton, Tilton

Improving The Odds
 
The inventory for our Lakes Region of NH area towns is steadily increasing as the summer months approach. We stand at 1128 homes on the market as of June 1 compared to just 898 homes as of April 1. Our inventory always rises during this prime time selling season. That means a lot more competition if you are trying to sell your home. And with fewer homes changing hands you may want, or need, to increase the odds in your favor to make your home one of the ones that does sell. The homes that sell, sell for a reason.  Usually, the reason is that the buyer saw real value in a particular home and decided to purchase that home instead of one of the many others that were viewed. Buyers comparison shop now more than ever. There is little urgency on their part due to the high inventory and slow sales pace unless they see the urgency of a great deal that could be missed.
 
If you look at the previous 12 months there were 775 homes sold in these towns. With 1128 homes on the market, this translates to a little over 17 months worth of inventory on the market right now if sales stay at the same pace as the last 12 months. This compares to having about 11 months of inventory available in June 2006 and 14 months inventory in June 2007. Having 17 months worth of inventory on the market is not real encouraging if you need to sell your home quickly.  But you can significantly improve the chances of selling sooner by making your home the best buy in its price range. Again, it falls back to creating value for a buyer. Make your property show the best that it can by decluttering, cleaning, painting, repairing, and staging your home to show off its best features.  Make sure that you have the best curb appeal possible. Your REALTOR® can help you with some suggestions and recommendations. If your home is already in great shape and shows beautifully and you are not getting the activity you want, you may have to consider a price reduction in order to create that value and make your home the best bargain out there. If you can’t reduce your price than you may have to rely on a good dose of patience and persistence in the market place to bring you that elusive buyer.

Homes Available June 1, 2008

For the Towns of Alton, Barnstead, Belmont, Center Harbor, Gilford, Gilmanton, Laconia, Meredith, Moultonborough, New Hampton, Sanbornton, Tilton

-by Peter Francese

New Hampshire is now the nation’s fifth-oldest state with a new record high median age of almost 40 years — more than three years above the national median.  Some perspective:  Back in 1990, our state was among the younger states.  It was the 31st oldest state, with a median age of 32.7 years — below the 32.8 years U.S. median.  But we are not the only ones aging fast.  The six New England states are now all among the 10 oldest states in the nation by this measure.

                       Rank 2007        State                   2007 Median age   

                              1                Maine                         41.6           

                              2                Vermont                     40.8

                              3                West Virginia              40.4

                              4                Florida                        39.9

                              5                New Hampshire        39.8

                                                United States             36.6

Before we get to what this rapid aging means for New Hampshire REALTORS®, here are some more details from these new estimates.
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Price Well, Sell Soon 

Unfortunately, the month of April won’t be remembered as the month that things turned around in the Lakes Region of New Hampshire as far as home sales go. The sales that closed in April were a result of buyer activity in February and March so it isn’t very surprising that the numbers came in so low. Most REALTORS® in the Lakes Region will attest to the fact that there really wasn’t much going on in those two months other than shoveling and cleaning up after seemingly endless snow storms. April’s total of 46 residential sales in the twelve towns listed was 30% lower than April of 2007. For the first 4 months of the year we stand at 172 sales which is about 25% of the total for the same period last year in these same towns. The average sales price has also dropped for the same period from $402,478 in 2007 to $373,502 so far this year or about a 7% drop from last year.

There were four homes that sold this month exceeding the $1 million mark and the Town of Moultonborough gets the top honors with total of 7 sales with an average sales price of $1.029 million. The highest sale was for a $3.1 million to be built, 4,300 square foot, 13 room, 5 bedroom waterfront home on Eagle Shore Road in Moultonborough.  

Reports from across the country show that average sales prices for homes are down. We may still see some downward movement on pricing on some properties here in the Lakes Region, but for the most part I believe that home prices have pretty well bottomed out.  It seems like housing might be the best bargain out there right now given the fact that just about everything else seems to be going up in price. The real encouraging thing that I have noticed is there have been a lot more homes going under contract over the past few weeks. Our office had four properties that came on the market recently that were priced well and showed real value to potential buyers. Those four listings were on the market for 5, 18, 20, and 37 days!  That proves that buyers are out there and they are paying attention. It also proves that if a homeowner is willing and able to offer his home at the correct price point it can sell pretty quickly!  What a great concept…

RESIDENTIAL HOMES SOLD APRIL 2008

For the towns of Alton, Barnstead, Belmont, Center Harbor, Gilford, Gilmantion, Laconia, Meredith, Moultonborough, New Hampton, Sanbornton, Tilton

Staying Warm
 
Everyone is feeling the pain at the pump these days as gas prices escalate almost on a daily basis.  Here in the Lakes Region of NH, like just about everywhere else that is cold, we are also faced with higher home heating costs and it is taking a big bite out of everyone’s wallet no matter how they choose to heat their homes. I think it is pretty safe to say that the home of the future around here won’t be the huge, open concept, McMansions with two story foyers and soaring ceilings. We might be headed back to something more akin to our parents three bedroom and one bath ranch. Or at least something far more energy conscious. The EPA has established standards for what is called an Energy Star Rated home.  Energy Star Rated homes use  20%-30% less energy than a regular home.  These homes feature tighter construction to eliminate energy wasting drafts, efficient insulation, high performance windows, more efficient and properly sized heating systems, and energy efficient lighting and appliances.  This focus and attention on energy use coupled with a somewhat smaller size structure and perhaps some alternative energy sources will help offset the future’s higher energy costs. Check out http://www.energystar.gov/ for the info on Energy Star homes. There is also a lot of tips and info there for homeowners that have older homes that would like to take steps to lower their heating and energy bills.
 
A “Not So Big House” is a smaller scale, high quality home featuring much more efficient use of space. The “Not So Big House” concept comes from author/architect Sarah Susanka and is also the title of a series of books. She promotes building homes for everyday living with a focus on quality over quantity. A “Not So Big  House” offers comfortable, efficient living spaces, attention to detail, character, and quality of construction.  By eliminating square footage in the form of rooms that just aren’t used as much in today’s modern lifestyle, such as formal living rooms and dining rooms, these homes also promote energy savings.  You can visit www.notsobighouse.com or Google “Not So Big House” to learn more of this design concept.  Just as smaller more fuel efficient cars will replace many of the gas guzzling SUV’s, home building trends will also move toward smaller more energy conscious homes. And who says that just because we may have to think smaller and more energy efficient it doesn’t mean we still can’t enjoy the ride. Just as you can get all the bells and whistles in a smaller car, you can put plenty of high end amenities in a smaller, energy efficient home for far less than the cost of a McMansion. 

RESIDENTIAL HOMES AVAILABLE AS OF MAY 2, 2008

 Towns of Alton, Barnstead, Belmont, Center Harbor, Gilford, Gilmanton, Laconia, Meredith, Moultonborough, Northfield, Sanbornton, and Tilton

-by Peter Francese

The first quarter 2008 home sales data for New Hampshire look about as bad as it gets. (Please see county-by-county home sales table below.)  Fortunately, that awful three-month period is behind, us and there are reasons to think that the psychology of home buyers in our state may improve in the coming months.
          
In the future, Realtors will look back on this period with awe that our housing market could have deteriorated so fast and so far.  It did so in large part because of the disintegration of the highly leveraged and derivative addicted financial sector.  That unprecedented and for the most part unforeseen collapse meant that any potential home buyer had good reasons to hold off until the situation at least stabilized. 
    
Well, now the financial news is full of stories about emerging inflation, tight credit and a soft job market.  The average consumer has little reason to be optimistic about their near-term prospects.  But not all consumer households or all states are average.  Places and people with an above-average and growing incomes are more likely to see beyond the current bad news and be more optimistic about the future.

New Hampshire is one of those places.  Chart I below shows how our state differs from the nation in terms of household income for three important age and income categories.  In terms of the all household median income, New Hampshire, at nearly $60,000, is 123 percent of the United States median of $48,500, according to the latest (2006) Census Bureau American Community Survey.

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