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.

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.

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

Black Flies and More Listings

It is May and black flies are multiplying. So are the listings. We are up to 1083 residential listings in the Lakes Region of NH. That is up from the 900 homes available back in January but only slightly more than last May which came in at 1064. There are 287 homes available under $200,000 compared to on 203 last May, so there is a definite trend toward more lower priced homes on the market with many of those being bank owned properties. The number of high end homes on the market has dropped about 7% with 516 homes currently available over the $300,000 price point compared to 553 last May.

The National Association of REALTORS®  compares a number of factors including home costs, mortgage rates, and family income and calculates a Home Affordability Index.  The higher the index number, the more affordable the housing is in that area. On a national level, the index stood at 166.7 in March which is near an all time high. That number has improved from the 135.9 rating in March of 2008 and 107.6 in 2006.  Housing in the Northeast has always been a little more expensive than the South or the Midwest so it really is no surprise that our index rating would reflect that. In March we came in at 136.1 or well below the national average in affordability. Back in March of 2008 the index rating was even worse at 101.4.  So while housing in the Northeast may not be quite as affordable as other places we are at least headed in the right direction. Since mortgage rates aren’t likely to go lower, it doesn’t take a rocket scientist to figure out that in order for houses to be more affordable either prices have to drop or you need to get a sizeable raise. I’m betting there may be no raise in your future given these hard economic times so prices will have to come down some in order to improve our rating.

But there are some great deals on housing out there in every market. That coupled with the $8,000 tax credit for first time buyers has resulted in first time buyers coming in to the market in relative droves. They accounted for 53% of the transactions nationwide in March. That’s the good news, we just need more of it. Hopefully the trend will continue, especially around here…

The Lakes Region Residential View Contest will end next week, so if you live in a home with a view send a photo of it along with your contact information to my attention at Roche Realty Group or email me at rsanborn@rocherealty.com. I’ll post them at http://www.lakesregionhome.com/ and on May 13^th we will pick the best view submitted. Judges will be Jen Serrano from Wells Fargo Mortgage, Wanda Keenan from Paramount Title, and Sheryl Foss from Image Appraisals. The winner will receive $100.00.

Residential Homes Available May 2009

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

First Quarter Lakes Region Residential Sales Results

As billed, March did indeed go out like a lamb weather wise and sales wise with only 44 residential homes sold in the Lakes Region of NH. That total is 24% off from last March’s tally of 58 homes. The average price of the homes sold in March was also down from $330,774 last March to $218,530 this March. The major reason for the drop in the average sales price is the fact that far fewer high end homes are selling. Of the 45 homes sold in March, 18 were bank owned properties and 3 were short sales.

The numbers for the 1^st quarter of the year show that we are down about 11% from last year with respect to the total number of residential sales: 112 so far this year compared to 126 last.  The average sales price for the 1^st quarter came in at $237,480 compared to $356,812 last year. Again, this drop seems to be a function of fewer high end home sales. In the 1^st quarter of 2008 there were nine homes that sold over $1 million compared to just two for the same period in 2009.  The total gross sales volume in 2008 was $44.96 million compared to just $26.6 million this year. One good sign is that the average days on market has dropped from 132 last year to 112 this year signifying that some properties are moving just a little quicker.

A quick look at the 1^st quarter condo market shows that there 19 units changed hands with an average sales price of $223,550 compared to 35 units sold in the 1^st quarter of 2008 at an average sales price of $196,735. So even though the sales numbers were off 45%, the condo average sales price has held up better than the residential sector so far this year. There were only two bank owned condos sold and one short sale so far this year which seems to indicate that far fewer vacation home owners are in trouble. The same scenario holds true in the mobile home market where 1^st quarter sales dropped from 13 in 2008 to 9 in 2009 but the average sales price rose from $33,262 to $43,332. 

The Lakes Region Residential View contest is underway so if you live in a home with a view send a photo of  it along with your contact information to my attention at Roche Realty Group or email me at rsanborn@rocherealty.com. Yes, waterfront views are also views! I’ll post them at http://www.lakesregionhome.com/ and on May 13^th an independent panel of  judges (I promise, no tax assessors) will pick the best view submitted.  The winner will receive $100.00.

Residential Homes Sold March 2009

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

The residential home inventory in the Lakes Region of NH inched up to an even 1,000 properties on the market as of April 1, 2009. That is up about 60 homes from last month and represents about an 11% increase in homes on the market compared to last April. 1,000 homes translates to about 18 month’s worth of inventory on the market based on the rate of sales over the past year.I just recently sold a home to a buyer from California. He was in the position to buy anywhere in the state and, in fact, anywhere in the country. But he chose NH primarily for tax reasons and after looking around the state he settled on the Lakes Region and bought a home in Gilford. His choice didn’t necessarily have anything to do with the community or even the Lakes Region in general but had more to do with the value he saw in the property that he purchased (although I believe he will soon discover the benefits of the area and learn why so many people want to live here). Part of the value he saw in the property that he purchased was an astounding, panoramic view encompassing the Gunstock Mountain Resort, Winnipesaukee, and mountains beyond. It has one of the best views I have seen from any home in the Lakes Region. The design of the home maximized and framed the view from every level and just about every room in the house. The view was a huge part of the appeal and perceived value in this purchase.

A property with a view of lakes and mountains will undoubtedly bring a higher sales prices than comparable properties without a view. How much more depends on the view itself and what that view is worth to any given buyer. Some buyers (more…)

There were 39 residential homes that changed hands in the month of February in the Lakes Region of NH compared to 30 in same month last year. The bulk of the sales were below $200,000 so that obviously has an effect on the average sales price shown. Activity does seem to be picking up on the lower priced properties and I have even run into several multiple offer situations on some of them. The decreased days on market in some of the towns show that when buyers see value they do buy.

There are certainly great buys on some of the properties in the Lakes Region right now. You can find many properties listed for far less than the town’s current tax assessment.  Last week one buyer put a nice bank owned townhouse in South Down Shores under agreement. It appeared to be a very good deal as it was offered at $134,000 or $100,000 under the tax assessment. The unit next door is currently on the market for $219,000. Similar units were selling in the mid to high $200,000 range not long ago. Another home that went pending was a bank owned, 1988 vintage, 4  bedroom colonial on South Rd in Belmont. It was offered at $184,900 which was considerably less that the assessed value of $313, 400. A property on Windsong Place in Meredith was also quickly put pending when the price was reduced from $139,900 to $124,900. It is currently assessed at $251,000. This was a solid, 1,500 square foot home with a two car garage on 5 acres. It definitely needed some cosmetic work and upgrades but was undoubtedly a great deal for the right buyer.

If you are looking to pick up a deal in today’s market, here are a few things to consider:

Just because a property is offered at what seems to be an unbelievably great price it doesn’t necessarily mean that it is a good buy. A home offered way below  the tax assessment doesn’t make it a steal, but it is a place to start your search. You really have to go look at a property closely to determine if it looks like a good deal. The $70,000 to $100,000 waterfront or water access camp is probably really not going to turn out like what you envisioned. If the price seems to be too good to be true, it probably isn’t. Many times an extremely attractive price equates to a property in very poor condition, but there are the exceptions.

Home inspections are always recommended and even more so with a bank owned property. Bank owned properties are often left in a deteriorated state by the former owners, they are sold in “as is” condition, and you won’t get disclosures or any history about the property. Bank owned properties are winterized and left unheated which really is not good for the house. Some homes have had water damage which can turn into a mold problem when the heat is turned back on. Many of these properties are better left for contractors to go in and rehab. But you will find some in excellent condition or simply in need of some cosmetic work and those are the good buys.

A really good option to bank owned property is to look for a competitively priced, owner occupied, property that is in nice condition. Someone who has owned a property for a long time can often be competitive in pricing and the home is usually better maintained. Buyers will also get all the proper disclosures and history of the property. Sometimes the better deal is not necessarily the home with the cheapest price tag.

Residential Homes Sold February 2009

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

Cram Down.

Unlike the stock market, home inventory levels remain high. We really need stocks to go up and inventory to go down. There are 941 residential homes available as of March 1 in the Lakes Region which represents about 17 months worth of inventory. The average list price is $547,575 and the median list is $299,000. In March of 2007 there were 885 homes on the market with an average list price of $556,118 and a median list price of $321,000. Basic economics says that lower prices should increase sales, it is just a question of how low and when. But prices are not the only factor affecting our housing markets.

The government is trying to stimulate the housing markets which are clearly in dire need of help. But even with the glut of homes on the market, low interest rates, and depressed prices many buyers are still reluctant to jump into the market. Pending home sales in January across the country dropped 7.7% after a gain of 4.8% in December. Not a great start to what most consider the fourth year of this down market. Many prospective homeowners think that prices are still going to fall further. Financing, or the lack of it, can certainly be an issue and is keeping many out of the market. Others are just plain scared to make a move given all the uncertainties in the economy and some even think that interest rates will go even lower. I don’t see interest rates going lower especially if the new administration can get Congress to pass an extremely controversial piece of legislation that is appropriately called a “Cram Down” provision.

This “Cram Down” plan is intended to help stem the tide of foreclosures by allowing bankruptcy courts to modify the mortgages of homeowners that are in trouble. The plan is to reduce the principal amount owed on the loan and make the monthly payments on the home more affordable. The purpose here is to put pressure on loan servicers to “voluntarily” reduce mortgages before the buyer files for bankruptcy. Supporters of this legislation say that lenders are not doing enough to modify the loans of borrowers on the brink of losing their property. While everyone would like to see homeowners be able to stay in their homes, especially the mortgage holders, many homeowners may still be unable to make even the reduced monthly payments. The nation’s largest lenders are lobbying heavily against this proposal. They say that it would have a huge negative impact on the already weak mortgage markets by creating even greater risk for the lenders. They say this proposal would result in higher down payments, interest rates, and closing costs on new mortgages further stalling any housing recovery. I don’t know about you, but anything that is named a “Cram Down” plan, no matter what it is referring to, doesn’t sound very good. I’d like to know your thoughts on this issue as well as the state of the real estate market in general, so please feel free to leave a reply below or by clicking on “no comments” to bring up comment box…

Residential Homes Available March 1, 2009

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

Yes, we can!

I think I can safely say “I have seen the bottom of the market and this is what it looks like”. We had a mere 28 residential sales in the month of January 2009 for the towns in our Lakes Region list. That is down from 34 last January and 57 in 2007. The good thing, I guess, is that sales can’t go much lower so surely we have only one way to go and that is up. Most agents I have spoken with lately are seeing increased activity which hopefully translates into more contracts in the coming months.

The new economic stimulus package that was just passed has an $8,000 tax credit for a first time home buyer which, unlike the $7,500 tax credit last year, does not have to be paid back as long as the home in kept for three years. This credit is available to taxpayers who purchase a primary residence between Jan.1 and Dec. 1, 2009. There are income limits to qualify: you can’t make more than $75,000 if you are single or $150,000 for married couples. The Rural Housing Service also received additional funds for their direct and guaranteed loan programs which are used frequently for first time buyers here in NH.

President Obama has released details of a $275 billion Homeowner Affordability and Stability Plan to help homeowners struggling to stay out of foreclosure as well as expanding the role of Fannie Mae and Freddie Mac to stem the tide of increasing foreclosures. There are provisions in this program to help millions of responsible homeowners who can’t refinance because of falling property values, as well as “at risk” homeowners who need interest rate reductions to get their payments down to manageable levels. Lenders can receive financial incentives from the Treasury matching the amounts they modify interest payments by and yearly incentives if their borrowers stay current on their loans. Homeowners in the program will also receive a $1,000/yr principal reduction for five years if they stay current on their loan. There are many guidelines and tests to qualify but it should help 7-8 million homeowners. However, this plan will not help the majority of homeowners in the country that do pay their mortgages on time. It also won’t help millions of homeowners that have loans that are not already backed or guaranteed by Freddie or Fannie or if they simply owe way more than their house is worth. Fannie and Freddie will also receive increased funding from the Treasury to ensure strength and stability in the mortgage markets, maintain mortgage affordability and to, theoretically at least, increase confidence in them.

That brings me to my point. Lack of confidence. We all sincerely hope that these stimulus packages actually work and that they stabilize the housing and economic markets. But the fact is we have an unprecedented confidence crisis in this country which is paralyzing the economy as much as any other factor. We get a daily dose of mood altering “downers” by way of daily newscasts, articles, speeches, and doom and gloom predictions from analysts and politicians all the way up to our newly elected president. The Brits weren’t this negative when London was being bombed on a daily basis in WWII. We need a stimulus package for our mood as much, if not more, than for the financial and housing markets. When people are beat down every day by relentless gloom and doom predictions they won’t buy much of anything let alone new houses. I am not sure why the folks down in D.C. who have strapped this nation the biggest “mortgage” in the history of the world don’t see that. Vince Lombardi said “Confidence is contagious. So is lack of confidence”. A little more positive reinforcement from those in charge probably won’t cure everything by itself, but it surely wouldn’t hurt. What happened to “Yes we can”?

Residential Homes Sold January, 2009

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

Tax Time… 

There are a total of 923 residential homes available in the towns in our Lakes Region of NH list. That is up just slightly from last month and represents about 16.5 months worth of inventory currently on the market.

February is a good time to get started on your tax return if you haven’t already. There’s not a lot to do on weekends now that the Super Bowl is over. Patriots fans should have had their returns done several weeks ago but sometimes it just takes awhile to get back to a normal life. If you are a homeowner, particularly a new one, you need to know that there are a number of deductions that you can take on your taxes that help offset the many other joys of homeownership that you will encounter in the coming year. You can Google “Publication 530″ to see the IRS explanation of the deductions allowed as well as a number of other sites that actually explain it all in English.

Your home offers you some giant tax deductions so make sure you take advantage of them. The two big ones that stand out are property taxes and mortgage interest. We are blessed with high property taxes here in NH (I am kidding) and there is little doubt that interest is the bulk of your mortgage payment so these two are the biggies. But if you just bought your house in the last year you can also deduct any points you paid to get that reduced interest rate and also be sure to deduct the pro-rated taxes that you paid that appear on the settlement statement you received at your closing. If you are paying PMI, Private Mortgage Insurance, you can also now deduct that as well but the policy has to be issued after Dec 20, 2006. Interest on that home equity loan that you took out is also deductible even if you used the funds to buy that new boat or a two month vacation in Hawaii. Interest on mortgages for second homes is also deductible but we’ll worry about that when we can actually afford to buy one! But did you know that that second home could be a RV or a boat as long as it has sleeping, cooking, and bathroom facilities. Bob houses don’t count.

If you sold your home, costs associated with the sale such as real estate commissions, title insurance, and legal fees are all deductible from any taxable gain you might have. Perhaps the biggest wealth builder related to owning and selling a home is the capital gains exclusion. This allows you to keep, tax free, any profits on the sale of your primary residence up to $250,000 if you are single or up to $500,000 if you are married. Make sure you keep records of all real improvements you made over the years as these are added to you cost basis so they can be deducted from your profit. Don’t confuse home improvements with home repairs and maintenance which are not deductible. You must have lived in the residence at least two of the past five years and you can only take advantage of the capital gains exclusion once every two years. But what a deal!

You can claim other tax reductions for having an office in your home if you meet certain requirements. Your office must be used regularly and exclusively for business purposes and be your principal place of business where you meet with clients and customers. Be careful with this one. Be sure to consult with a good accountant or tax preparer on anything you have questions on.

Residential Homes Available February 1, 2009