Bail out?

There were 71 residential sales in the month of October in the towns listed below compared to 73 homes sold last October. Not too bad! The average sales price was $290,420 which was down significantly from the $419,747 average last October. The median sales price was also down to $189,900 compared to $262,000. These drops, however, are a result of what sold and in what price ranges rather than just a dramatic drop in home prices. There were only two home sales exceeding the $1 million mark this October compared to 5 last October. And a huge 55% of the sales last month were below $200,000 compared to 22% last October. I think it is good news that there is a lot of really affordable housing out there and it is being purchased.

We keep hearing about huge, almost inconceivable, numbers floating around with regard to bail outs, deficits, and even home sales.  We have a $10 trillion federal deficit and a $700 billion bailout package for financial institutions with more to surely follow for the auto industry. Freddie Mac says that mortgage originations in 2009 are expected to shrink by 8% to $1.65 trillion and rebound to $1.82 trillion in 2010. FHA and VA backed loans are expected to increase from $286 billion this year to $340 billion next year which reflects how popular these types of loans have become. Freddie also expects that total homes sales will increase from 4.86 million sales this year to 5 million sales in 2009. But that number is well off the 7.46 million homes sold in 2005.

To put these number in perspective, if there were such a thing as a $1 million bill, then $1 trillion is equal to one million of those million dollar bills! A billion is a mere thousand of those million bills. It is hard to fathom these numbers, but it does seem to me that even though mortgage originations are projected to fall to just $1.65 trillion in 2009 that that is still a really huge amount of money and a lot of loans! And while a projected 5 million homes to be sold in 2009 is far less than the 7.46 million a few years ago that is still a lot of homes!  Things won’t stop completely, homes will sell, people will borrow lots of money to buy them, and things will eventually smooth out.

As far as the huge bailouts are concerned, I’d like to be the first to recommend a federal bail out for real estate agents. REALTORS® are getting hit pretty hard too: no sales = no income.  A mere $1 billion in the Lakes Region spread around evenly among the agents would tide most of us over pretty nicely until things straighten out. I promise we won’t go on any junkets like AIG or use my private jet to go testify in congress. Obviously, this recommendation is made in jest. But just consider one thing; if you are trying to sell your home and you are a bit discouraged with this difficult market, your agent is in the same boat with you and is trying very, very hard to sell your property!  Things are really tough right now for your agent too! The possibility of selling your home and finally seeing a paycheck after many months of hard work is likely the only bail out plan he or she will ever see!

Residential Homes Sold October 2008

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

So what’s out there for deals on condos right now?  Just like the rest of the market there are some good deals to be found if you look around. Through the end of October the average sales price for condos in Belknap County Prices stands at $181,903 compared to $205,847 last year for the same period. The total number of condo sales in Belknap County is also down about 30% so far this year compared to last. So if you are in the market here are a few nice units to check out.

If you are looking for a waterfront condo take a look at the bank owned listing at 80 Prescott Ave in Laconia. This is a 2,092 square foot, split level style home that is part of a three unit association called Hawk’s Haven. Enjoy great views from your deck looking out over the shared beach and docks just steps away. The agent says this property is move in ready. It has 4 bedrooms, 3 baths, an eat in kitchen, and large family room so there is room for a crowd. As with all bank owned properties, this home is being sold in “as-is” condition and is listed at $319,900 which is only 57% of the assessed value of $565,100!

If you like to golf then you need to see the offering at 16-2 Eagle Ridge Rd in Center Harbor. This home sits on the 16th fairway of the Waukewan Country Club and is just a short walk to the clubhouse. This 2,000 square foot home has 6 rooms, 2 bedrooms, 2 full baths, a large private master suite, den, a living room with a brick fireplace, screened porch, plus a deck overlooking the golf course. This unit was originally offered at $249,000 and is now reduced to $199,000. Fore!

Another offering just under the $200k mark at $199,900 is Unit 16B, Liberty Run in the Fields Crossing complex in South Down. This is a 1480 square foot, 3 bedroom, 2 bath unit with a 1st floor master suite, living room with cathedral ceilings and fireplace, efficient monitor heat, a one car garage and all the amenities that South Down has to offer. This unit was originally listed at $262,900 and is now priced at 89% of the current tax assessment. Seems like a pretty good deal.

For more information on these homes and other great deals check out www.lakesregionhome.com/great deals .

Election over, home sales up?

The inventory level of homes on the market in our Lakes Region list of towns dropped about 7% from last month and now totals 1218 listings as of November 1. This represents about a 21 month inventory of homes that are currently on the market. That is also a slight decrease from the 23 month inventory shown last month. This is good news, but we still have a long way to go to get back down to reasonable levels.
 
According to the National Association of REALTORS® existing home sales across the nation, including single family homes and condos, rose 5.5% in September.  Housing inventories on the national level fell at the end of September by about 1.6%.  A lot of this has to do with the fact that median homes prices have fallen which is partly a result of the increase in foreclosures and distressed sales. As of September 1, the national median home price was $191,600 which is 9% lower than last September. Out in California existing home sales were up a whopping 97%. The bad news is prices there have fallen 41%! The good news is that the houses are coming off the market and reducing inventory levels. They had one of the biggest run ups in home prices and therefore have the farthest to fall. When prices come down homes sell.
 
The elections are finally over and it is time to take down all the political signs, rake up the leaves, and get your property ready to sell during the upcoming holiday season. If your house is on the market there is no doubt that you have many chores to do before winter hits that will help present your home at its best for potential buyers. There will be a few more warm days to finish cleaning up the yard, doing some touch ups on the paint and trim, and maybe even getting the windows clean. Keep your curtains open to let more light into your home as November is always seems a little dull and gray. Buyers don’t like dark rooms. So that means your home needs to be spotless. If you have a fireplace always have a fire going as it sets a great mood and shows off that feature of your home. And do your best to decorate your home to the max inside and out and create a holiday feeling that buyers can admire and relate to. It just might sell your house. Selling a home during the holidays can be a little stressful, but keep in mind that the buyers that are looking now are the real serious ones.
 
Now that the elections are over I do expect that homes sales will be on the rise. Not because we have a new president or that a euphoric feeling of change has swept over the country. My feeling is that with the political signs down, buyers might actually be able to see the for sale signs again!

Residential Homes Available November 1, 2008

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