There are some great values out there

We have a good month and then a bad one. August residential home sales in the Lakes Region were certainly not stellar. While we equaled last month’s total of 62 sales posted we were 43% lower than last August’s total of 109 sales. For the first eight months of the year we have had a total of 440 residential home sales compared to 564 sales in 2007 and 663 sales in 2006. That represents a 22% drop from last year’s total thus far. The average sales price so far this year comes in at $358,711 compared to $396,367 last year for the same period or a 9% drop in the average sales price.

It is pretty clear that we are in troubled times. The uncertainty on Wall Street has had a major impact on just about everyone. When people are scared of losing their life savings it is pretty hard to think about buying a house or even a new car for that matter. It is pretty clear that we will not see home sales rebound until stability in the financial markets has been reestablished. And, it is certainly going to be much harder to get a mortgage moving forward. It should be. Buyers are actually going to have good credit, proof of income, and a down payment in order to buy a home. Imagine that!  Before, they just had to have a pulse. So while everything that is going on right now in the financial markets is pretty much beyond belief, things will turn around, and we should come out of this much stronger and better off for it. We will get back to the basics and that is a good thing. Remember when homes were meant to be lived in and were looked at as a sound, long term investment, not just a way to make a quick buck or a piggy bank to draw money from? 

A look at what is selling reveals that just about everything is moving but just in smaller numbers. There are entry level homes, bank owned, new construction, water access, million dollar waterfronts, and everyday residential homes selling in every price range.  Some deals that stood out last month include a circa 1774 cape and barn on 26 acres Griffin Road in Gilmanton.  This was a bank owned property that originally was offered at $274,500, was assessed for $235,111, and sold for $198,500. There was a water access, 3 bedroom, year round home with a dock on Brookhurst Lane in Meredith that was assessed for $321,100 which sold for $250,000. And there was a nicely updated, move-in ready, 2 bedroom ranch on North Barnstead Rd in Barnstead that was assessed for $211,100 that sold for $160,000. These properties represent examples of the great values in today’s market and that is precisely why they sold. As with any down market, there are great OPPORTUNITIES out there for buyers who are fortunate enough to be able to take advantage of the times. If you have been thinking about a new home or investment property this could be the perfect time to start your search.

Residential Homes Sold August 2008

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

Just Another Crisis

The residential inventory in the Lakes Region of NH continues to increase.  As of the first of September there were 1347 homes available compared to 1313 last month in the twelve towns listed. This equates to 23 months worth of inventory on the market or almost 2 years worth of inventory! To put this in perspective, as of January 2006 we had about a 7 month supply of homes on the market, as of January 2007 we had about a 10 month supply, and as of September 2007 about a 16 month supply. So if you are wondering why it is taking your home a while to sell, this fact might shed a little light on it for you. There is a lot of competition in each price range. So if you want to sell in a reasonable time frame, price your property to be the best deal out there or it could still be for sale two years from now. While the glut of homes on the market is certainly not great news for people trying to sell, buyers should be taking advantage of this market. There are some really good deals to be had and interest rates have fallen to below 6% this week so it is the perfect time to buy.

We have a new, emerging crisis! One of the most iconic fixtures to be found on the American home is being pushed one more step toward extinction. While many of our younger generation have never laid eyes on these symbols of American prosperity and technology (and probably don’t care to), I have personally seen some children look at these roof top sculptures of art with awe and wonderment. “Look at that Daddy, what is that?” they exclaim. Yes, the beautiful roof top television antenna which provides free television reception is nearing extinction. As of February 17, 2009 all television broadcasts will switch form analog transmission to digital (whatever that means) rendering these works of roof top art useless unless a converter box is purchased. This could be a crisis of national proportion. What could be more stunning on a house than two, perhaps three, beautifully aged antennas pointed in several different directions? What could be more pleasing to the ears than the whir of the second most important invention in the history of mankind: the antenna rotor! So please help save this symbol of prosperity, our dedication to home entertainment, and our thirst for knowledge. Don’t discard your antenna if you have to begrudgingly come out of the 1950’s into the world of HD cable and satellites. Carefully take your antenna down. It is far too beautiful to leave on the roof anyway. Display it proudly inside your home. They fold up easily and take up much less space than the exercise equipment you currently hang your clothes on and the rotor function makes it unnecessary to reach for clothes way in the back!  So stay tuned, we’ll be right back! (I always wanted to say that).

Residential Homes Available as of Sept. 1, 2008

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

One Up

Suddenly, gas prices have dropped to $3.50 or so per gallon and it seems like everyone’s mood is improving a little. It’s not that gas is suddenly inexpensive as it is a long way from where we’d like it to be. But at least things seem to be headed in the other direction for a while and perhaps stabilizing some. People become just a little more optimistic when things seem to be headed in a positive direction. I can report for the first time in a long time that the number of homes sold in the past month exceeded the same month for the prior year. Not by much. It was only one sale more, but at least it doesn’t feel like the market is spiraling continually downward. A total of 62 homes in our area towns changed hands in July compared to 61 in July 2007. Not time to strike up the band yet, but it does feel better that things could finally be leveling out and a new normalcy can be maintained. As with gas prices or anything else in life, if things stabilize so consumers know what to expect, everyone has a more positive outlook.

Seventy percent of the sales in July were under $300,000 which shows that the low to mid-range properties are moving. The average sales price for the first seven months this year stands at $360,918 compared to $394,305 for the same period last year. The median sales price has dropped from $250,000 to $227,000 for the same periods. There were three homes that sold for over $1 million in July. One home that just missed being the largest sale in July at $2.175 million was extraordinary in that it was not a waterfront home, but a spectacular mountain retreat on Red Hill in Moultonborough. This 7,800 square foot home has 15 rooms, 5 bedrooms, 5 baths and sits on 62 acres with endless views of Winnipesaukee, Squam, and Kanasatka lakes as well as the Belknap and Sandwich mountain ranges. The home features high quality materials and attention to detail along with some everyday necessities like an in-ground heated pool and tennis court. Just goes to even the cheap stuff off the water can sell if it is priced right.

RESIDENTIAL HOMES SOLD JULY 2008

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

The best incentive is a good price.

So here’s the deal. We are up to 1313 residential listings available in the twelve communities listed in the Lakes Region of New Hampshire. That’s up over 100 listings from last month and over 400 from March. Based on the last 12 months sales in the same towns we are looking at 21 months worth of inventory! Great for buyers. Not good for sellers, particularly if you need to sell and sell soon. So what do you do?

Some sellers are offering buyer incentives as a marketing strategy to try and get the attention of the limited number of buyers that are out there. Incentives have been used for a while particularly by some of the larger new home builders. They offer programs like paying for the buyer’s closing costs, paying down mortgage rates, or for upgrading properties under construction. This practice has found its way to the resale market as some anxious sellers have offered vacation packages, cars, boats, or cash incentives as a way to make their property stand out from the rest. Other common incentives include the buyer offering to pay association or condo dues for the buyer for a year or two or free heating fuel for a year (with the prices today that will probably cease). One seller in Hampton last year offered to pay two years worth of taxes on a $1.2 million home or to buy down the buyers’ mortgage rate to the tune of $36,000 if he got an “acceptable offer”. And while the home did sell which was the goal, it sold only for $1.085 million and the seller still gave the incentive.

Sellers also sometimes offer limited-time bonuses to any agent that will bring them a buyer. Usually the more expensive the home is, the larger the bonus.  Despite what some seller’s think, REALTORS® aren’t magicians that can make a buyer appear out of thin air. However, one agent in our office received a $25,000 bonus for bringing a buyer to a multi million dollar home last year. That was great for the agent as things have certainly been tough for real estate professionals for the past couple of years.  But the agent was going to show the property to his buyer anyway as it fit the buyer’s criteria.

So do these types of incentives work? Sometimes, it might catch someone’s attention. Offering to pay for the buyer’s closing costs could catch the attention of a first time buyer. But buyers aren’t bashful in this market. If they need the seller pay closing costs, they ask for it anyway. And offering large incentives will signal a buyer that the asking price is likely inflated to cover the cost of the incentive. Without a doubt, the best incentive to a potential buyer is a better sales price.

Residential Homes Available as of August 1, 2008

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

Half Way There…

We are at the halfway mark of the 2008 sales year and I was hoping to report by this time that the tide had turned and that things are definitely on the up swing as far as sales here in the Lakes Region. I can’t quite say that yet as it seems that the tide may still be out and our boat still resting on the bottom. First the good news. The good news is that the number of residential homes sold in the 12 towns listed came in at 77 units compared to 65 in June and 46 in April. That feels a little better. But the bad news is that it was still 20% off from last June. In looking at the first six months of 2008 there were 314 residential homes sold compared to 394 in the first 6 months of 2007. That is also about 20% fewer sales compared to last year for the six month period.

Looking back at the first half of each year in this decade, 2008 is definitely the worst start we have had. The average days on market has also increased steadily since 2003. Practically each year though, there has been an increase in the average sales prices of the homes sold.

Residential Sales Comparisons for January - June

*************************************

While the sales numbers are down and homes are definitely harder to sell right now, the fact that the average sales price for a home in these towns has increased from $212,818 in 2000 to $363,753 in 2008 or about 70% is pretty impressive. Even with a slight drop in the average sales price compared to 2007 we are still above 2006 levels. But before you go thinking that home prices aren’t falling and that you can ask more for your home when you sell, we have seen significant price reductions on homes in all price categories. The fact that our average sales price is holding up well is in part due to the fact that more higher priced homes are selling combined with fewer sales. Numbers alone can be a little misleading.

Many agents and home inspectors I have spoken with recently report increased activity. As of 7/21/08 there were 124 pending sales in the communities listed so many more sales are in the pipe line. We are at the height of our sales season and buyers are out looking. Let’s hope the tide comes in soon.

Residential Homes Sold June 2008

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

Live in a Toyota?

The residential inventory in our Lakes Region of New Hampshire communities continues to grow as we reach the peak summer selling season. We are up just about a hundred homes on the market compared to last month. Could there be a Toyota in your future?  Maybe. I bet you didn’t know that second largest auto maker in the USA also builds homes. According to a July 2 Wall Street Journal article, Toyota has actually been building steel frame prefab homes on a small scale in Japan since 1975. They use the same production line model that the giant automaker uses to churn out Corollas and Camrys. The Toyota home is built out of ”cubicles” that are stacked together like Legos. It usually takes about 6 or more cubicles and about 45 days start to finish to construct the average home.  Homes cost from $200,000 for a 1,000 sq ft model up to $800,000 for the loaded “Lexus” model. The average Japanese home only lasts about 30 years and then it is demolished and a new structure built in its place.  Toyota built homes are designed to last about twice as long.  That still doesn’t seem to be a very long life compared to the century old homes we have here in New England and other parts of the country. Toyota is applying its car technology in their homes with things like a “smart key” that will fit your car and your home, sound deadening, and rust proofing. It sounds kind of funny to rust proof a house, but these are steel framed homes. If you’re old enough, you’ll remember that the early Japanese cars rusted away before your eyes! I guess they didn’t want to take any chances. Toyota is also testing electricity monitoring devices that will charge your electric hybrid vehicle during off peak periods too keep monthly electric bills low. The batteries in you car would also provide a limited amount of electricity back to the home in blackouts. They are also experimenting with using solar panels as siding and powering homes with fuel cells. A hybrid without wheels so to speak. 

Much to my dismay, Toyota won the NASCAR Coca Cola 400 on July 5. Seems a little un-American on our country’s birthday weekend.  Toyota does make a great car but it has no plans to build homes here in the U.S.A., so if there is a Toyota in your future it will have to be the four wheel version.  And that’s OK because I’m not sure what would happen if you parked a Chevy or Ford inside a Toyota built garage, it just wouldn’t feel right…

Residential Homes Available as of July 1

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