A short sale just may be the answer…

You might be able to put lipstick on a pig, but that won’t change the fact that the number of homes sales are down and that things are pretty quiet in the real estate world right now. If there was ever a year where we need to get the elections behind us so the country can get back on track this is definitely it. There was a total of 69 residential homes sold in September in our Lakes Region towns. That is down from the 88 transactions last September and 85 in September 2006. Looking at the whole year thus far, a total of 508 homes were sold during the first three quarters of this year at an average price of $361,817. That puts us 22% off last year’s total of 652 units for the same period. Not great, but it could be worse. If there is any good news in these numbers it is that we are only about 8% off last year’s average sales price of $394,915 for that nine month period. I don’t know about you, but to me that sounds a whole lot better than the percentage the stock market is down!

Unfortunately, these tough economic times are forcing a number of homeowners to sell their homes.  Even more unfortunately, because of the recent decline in real estate values many homeowners won’t find a buyer at their current asking price.  It goes without saying that any homeowner would like to sell his property at a price that covers his current debt. So usually he sets the asking price based in part on that mortgage payoff amount. But if the homeowner owes more on the house than what it is worth in today’s market he is not likely going to be able to find a buyer. One solution to this seemingly “no-way-out” situation is the short sale.  A short sale is when a lender agrees to accept less than what is owed on a property so that the property can be marketed and sold at a price more in line with current values. If a recent hardship has resulted in the inability of a homeowner to keep up with the mortgage payments, many times the lender is willing to negotiate a reduced payoff rather than going through a costly foreclosure process. More importantly, the short sale process is a solution for the homeowner that prevents a foreclosure or bankruptcy situation that would damage his credit rating even more.  If you need assistance in understanding the short sale process, requirements, documentation, and time lines please feel free to call me at anytime for more information.

Residential Homes Sold September 2008

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

 Since the bad news on Wall Street seems to continue on a daily basis and is undoubtedly affecting us all one way or another, I wanted to give you an update on the current real estate market on Lake Winnipesaukee which might help cheer you up!

We are very fortunate that the real estate market in NH is no where near as bad as the rest of the country. There certainly has been a drop in the number of homes sold this year in the Lakes Region compared to the past few years and inventory levels are high.  But homes are still selling. If you look at all of the residential properties that have sold so far this year we have experienced about a 9-10% drop in the average sales price of a home.

However, if you look at the chart below (which is for Winnipesaukee waterfront sales only), you will see that while the total number of sales is down, the average price of Lake Winnipesaukee waterfronts has actually seen a slight increase over last year. I think that is a testament to the old adage that goes “they aren’t making any more water front”. These numbers should give waterfront owners some piece of mind knowing that their property investment is pretty sound and that values are still there if you want to or need to sell your property.

                Lake Winnipesaukee Waterfront and Island Property Sales

 More Affordable Homes Available

The number of residential homes on the market in the Lakes Region has dropped ever so slightly from 1313 last month to 1301 listings available as of October 1.  This represents a 23 month supply of homes on the market and that it is daunting number of homes to sell. And while there are a lot of homes available in each price range,  it is interesting that the percentage of affordable homes, those in the $100,000 to $200,000 range, has been increasing yearly from 16% in Oct 2006, to 18% in Oct 2007, to 22% currently. Over the same time period, the percentage of homes in the $200,000 to 300,000 range has dropped form 34% in 2006, to 31% in 2007, to 27% currently. It would seem that these numbers reflect the downward pressure on pricing as well as a number of bank owned properties coming on the market. If there is any silver lining with the current market it is that there are many more affordable homes on the market to choose from for lower income or first time buyers. A bit of other good news on the national level is that pending homes sales rose 7.4% from July to August putting that index at the highest it has been since June of 2007. Hopefully that trend will continue.

You can’t escape the news about the financial market meltdown and problems in the mortgage industry. Every day, every newspaper, and every newscast.  So it is worth repeating again and again that the Lakes Region of NH is fairing much better than many other parts of the country even though it might not feel like it.  If you are looking to buy a home there is plenty of  money available from local banks such as Laconia Savings, Meredith Village, Franklin Savings, and Citizens Bank and other lenders like Wells Fargo Mortgage that did not get caught up in the sub prime lending mess. Because these lenders were more conservative and maintained their standards insisting that borrowers had reasonable down payments, verifiable incomes, and a good credit history they are still able to carry on business as normal, lend money for homes and to businesses and actually increase their business in these tough times.  So with all the bad news about Wall Street and Main Street, we are somewhat fortunate to live on the Side Streets and Back Roads of NH.

Residential Homes Available as of Oct 1, 2008

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