Roy Sanborn --Lakes Region of New Hampshire

Some Good Buys In October

If nothing else, the real esatate market in the Lakes Region of NH seems to be consistent in many ways. There were 73 residential home sales posted for October in the communities listed in this Lakes Region report. That total is very close to the 71 sales posted last October. The average sales price was down a little bit coming in at $271,339 last month compared to $290,420 last October and $292,896 in September of this year. Just about half the sales this past month were under $200,000 which also seems to be the new norm.

Top honors this month for the highest sale was a waterfront home at 221 Dockham Shore Road in Gilford. It was on the market for $1.875 million and sold very close to that at $1.865 million. This custom built lake home has almost 5,000 square feet of living space, ten rooms, six baths, a gourmet kitchen (of course), full finished basement, covered boat slip, and a detached two car garage with a guest apartment above all sitting on a 1.2 acre lot with 175 feet of frontage. A very tasteful home.

My pick for one of the best deals in October goes to the property at 21 Grouse Hollow in the gated Grouse Point Club in Meredith. This 3,680 square foot, contemporary style home has twelve rooms, four bedrooms, three baths, three car garage, great views of the lake, and was sold with a boat slip. This property was listed in March of 2008 at $1.095 million but finally sold for $675,000. Not only did the buyer get a great deal on the home but he now has access to all the fantastic amenities that the Grouse Point Club has to offer including the indoor swimming pool, exercise room, tennis courts, and beach.

There were some other great values picked up last month in all prices ranges. For example, a ranch with 200' of frontage on Berry Pond located at 18 Holland Street in Moultonborough was listed at $219,000 and changed hands for $165,000. The property was assessed by the town at $257,500. A Winnisquam waterfront home at 82 Sunset Drive in Belmont was originally listed at $449,000 (assessed for $478,800) was sold for $375,000. This completely renovated, year-round home has three bedrooms, two baths, a huge dock and 55 feet of waterfront. I bet the new owner is happily looking forward to the next boating season. Another nice deal was a 4,800 square foot Adirondack home at 15 Bay Ridge Dive in Meredith that was originally offered at $1.195 million in 2008. It sold last month for $799,000 which is 86% of the town's assessed value. This home has four bedrooms, five baths, a gourmet kitchen, the requisite cathedral ceiling great room with huge fireplace, and nice views of Meredith Bay on Lake Winnikesaukee.

Of the 73 transactions in October where the assessed value was reported in the MLS, nineteen sales were at 80% or less of the town's tax assessment. Were they all good deals? I guess only the buyer knows for sure. But then again, he bought it, didn't he?

Compiled from the NNEREN MLS System.

Congress Passes Expanded Home Buyer Credit

Lakes Region of NH Real Estate Market Report

The wind roared through the Lakes Region this past weekend and blew most of the leaves off the trees within a two mile radius into my yard. It also blew about 100 residential listings into the expired bin on the MLS system. There were 1146 homes on the market as of November 1 in the communities in this report representing about 20 months worth of inventory. This tally is just a bit lower than the 1218 homes on the market last November. The average asking price came it at $587,664 compared to $536,037 for last November.

The median price remained relatively unchanged from last November at $299,900. Of the 1146 homes offered in the Lakes Region, 53 of them are in what is called a "contingency" status in the MLS system. A contingency status means that there has been an agreement accepted on a property but that there are conditions attached as part of the deal that must be met before the sale can take place. These properties show up in active searches rather than as pending so that buyers can still see them.

One of the more common contingencies is when a buyer has a home to sell before he can purchase another one. We have always had buyers who were in that predicament and with the market the way it is today we seem to have many more. But given how hard it is to sell any property today, sellers should think very carefully about accepting and offer with this type of contingency. Sometimes though, depending on the seller's situation and other conditions (such as how saleable the buyer's house is and how strong the offer is otherwise) it might be worth a shot. In this case, a purchase and sale is entered into that allows time for the buyer to find someone to purchase his home but also allows the seller to continue to market his home and possibly find another buyer who doesn't have a home to sell. The P&S would include a "kick-out" clause which allows the seller to accept another offer from a second buyer. The second offer would only become effective if the first buyer could not come up with a way to remove the contingency of the sale of his home within a short period of time (usually 72 hrs). The second buyer will probably end up with the property as the chances of the first buyer being able to move forward on the deal is usually pretty slim. The downside to accepting a contingency offer like this is that a contingency status listing just doesn't get as many showings as those that are listed as "active" in the MLS. But again, given certain conditions (like your home has been on the market for two years and the only person ever interested in it was your cousin Vinnie who doesn't have two nickels to rub together) it could be a way to get your home sold.

Now for some good news for the housing industry! Congress approved a bill today expanding the first time homebuyer credit to include homebuyers that have owned homes for at least five years. These buyers may be looking to "move up" and purchase larger or more expensive homes which should help the mid-range priced homes. Buyers can receive a $6,500 credit on homes up to $800,000 as long they enter into a purchase and sale agreement by April 30, 2010. To be eligible buyers must earn less than $125,000 individually or $150,000 per couple. If the buyer doesn't use the new home as a primary residence or sells it within three years he would have to repay the credit. The first time buyer credit is also extended to April 30, 2010.

Residential Homes Available November 1, 2009

Data compiled from the NNEREN MLS System.

All Hallows' Eve in the Lakes Region Home Market

Click on the pictures for some true terror...

This time of year you tend to see a lot of ghosts, goblins, ghouls, and witches on the streets of the Lakes Region of NH. There are also a lot of haunted houses and scary mansions with dark and dusty dungeons full of cobwebs, musty smells, and sinister shadows. It kind of reminds me of Halloween, but I am talking about real estate and the buyers, sellers, and agents involved in this frightening business.

We find buyers coming to the Halloween home buying party with many different costumes on. Sometimes they try to hide their true identity, but most of the time their costumes reflect who they really are. One popular costume this holiday season is that of the outlaw legend Jesse James. Cowboy outfits have always been popular for kids and buyers, but this year they are focusing in on one of the greatest robbers ever. Most of these buyers are from south of the border (the flatlands) and I think that the popularity is a result of reading too many articles in the Tombstone Gazette about people stealing property all over the country. While there are some great deals out there, these outlaws need to learn that they can't steal everything.

It seems that the number one outfit is the old fashioned ghost costume. Buyers this year usually materialize right before your very eyes and then disappear just as quickly like mist on Lake Winnipesaukee early in the morning. Equally as popular this year is the costume of the NFL great, Brett Favre. I'm not just talking about a cheese head Green Bay Packer uniform. It could be a New York Jets or Minnesota Viking uniform or combination thereof. He can't make up his mind if he really wants to play or for whom. Buyers this year have the same problem deciding what and if they want to buy which explains the rising popularity of this scary get-up.

Sellers, to our dismay, often dress up as riverboat gamblers thinking they can bluff their way to a higher sales price with poker faces and sly grins. Many don't realize until it is too late that the buyers hold the best cards right now. The morbid result is another bludgeoned deal to be off hauled to the cemetery. I could say some sellers dress up as ghouls or witches, but that wouldn't be nice! Fortunately, there are other sellers dressed up as princes, princesses, damsels in distress, or Monty Hall saying "Let's Make a Deal".

Like buyers, real estate agents have gravitated toward the ghost costume this season. Many sellers unfortunately have unknowingly listed their property with one of these phantom agents. Their picture in the company brochure looked worldly and real enough, but it seems that many agents are caught in that eerie netherworld between the living and dead. Half in the business and half out. Although I didn't believe in ghosts before this year, I visited many of the dark, foreboding, and genuinely haunted real estate offices in the area and saw the empty, deserted desks of agents departed and felt the overwhelming odor of dead deals and expired listings. Really spooky.

You might also see some new agents dressed as babies and some well seasoned ones as the old standby Father Time. There are a few agents dressed as medicine men or sorcerers. But the ones that are likely to win the top prizes for the best costumes are the many strong agents who are out there every day as Fairy Godmothers or Super Heroes fighting the darks forces on All Hallows' Eve. It may take a while for them to be recognized. It usually occurs after a long, persistent battle through dark times that culminates with a home sale to a very nice lady dressed as Little Red Riding Hood.

And finally, just remember that the cold feeling you get in your parlor is probably just a drafty window, that the banging sounds on the middle of the night is probably air in your hot water pipes, and that the blood curdling moaning you hear in the basement is probably your spouse lamenting about the 673 days your home has been for sale! Have faith though, Christmas is coming. That's another holiday entirely and you know, I still believe in Santa Claus. Do you?

Winnipesaukee and Winnisquam 3^rd Quarter Waterfront Sales Report --Lakes Region of NH

It is great to report that the waterfront sales on Lake Winnipesaukee and Lake Winnisquam seem to have held their own over the summer season despite a downturned economy and general reluctance on the part of everyone to buy just about anything. Astute buyers still recognize that waterfront properties are a great place to invest their money. Unlike the stock market and other investment opportunities, buying a waterfront is a tangible, secure investment right now and is something that can really be enjoyed.

In the 3^rd quarter of 2009 there were 26 sales on Winnipesaukee (including island properties) at an average price of $1,076,621. There were 7 homes sold at over $1 million with the highest sale being the property at 55 Broadview Terrace in Gilford that changed hands for a mere $6.5 million. This is a 11,464 square foot, 6 bedroom, 8 bath home constructed in 2005 sitting on a 1.59 acre lot with 270 feet of frontage. Obviously, this is a fantastic home with all the amenities and quality one would expect at that price.

Year to date, there have been 55 waterfront transactions on the big lake at an average price of $960,961 with a total sales volume of $52.85 million. That represents about 40% of the total sales volume for all the residential properties in the towns that share the waterfront on Winnipesaukee. So how does that compare to last year? In 2008 there were 53 waterfront transactions over the same time period with an average price of $1,314,639 and a total sales volume of $69.68 million. That sales volume represented about 39% of the total sales volume for the same period last year. Pretty consistent.

Sales on Lake Winnisquam got off to a real slow start in the first six months of the year with only 2 sales. However, in the 3^rd quarter there were 9 transactions at an average of $529,667 and a total volume of almost $4.8 million. The highest sale was at 87 Collins Brook Rd in Meredith at $740,000 for a 4,572 square foot, 14 room, 6 bedroom home, with 170 feet of frontage. The 11 transactions year to date on Lake Winnisquam came in at an average price of $495,409. That average is down from the $620,250 average posted in 2008 but the total sales are up from 8 sales in the first three quarters of 2008.

As with the residential market in general, the average prices on waterfront properties are down a bit signaling that there are some good deals out there for those buyers looking for their slice of the Lakes Region waterfront pie. Currently there are 27 properties available on Winnisquam ranging from $275,000 to just under $2 mil. On Winnipesaukee there are over 130 properties available where you can spend as little as $200,000 for an island property and just under $400,000 for a mainland direct waterfront access. So if you are looking for a waterfront retreat now is the time. I'd be happy to help, especially if you want to match that $6.5 million sale last month!

Home Sales Are Heating Up. Interest Rates Now at 8.5%.

We've had six consecutive months of record breaking home sales in the Lakes Region of NH despite interest rates hovering just above 8.5%. Home prices have risen sharply over the past year and we have just surpassed the levels set during the peak in 2005-2006. The scarcity of nice mid-priced homes has resulted in multiple offers and many quick sales at or above full price. First time buyers are having great difficulty finding homes under $200,000 and even when they do the current higher rates often make home ownership just out of their reach.

That's the future. Now back to reality.

We are three quarters of the way through 2009 and it is probably pretty safe to say that there will be no rebound in the local real estate market this year unless something monumental happens in the next three months. The results so far have been somewhat encouraging in that the market does not seem to have gotten any worse and has leveled out-at least in terms of the total number of sales occurring. The signs are pointing to the fact that we have likely reached the bottom of the housing market. It is just a question of how much longer things will remain at these levels before homes prices, interest rates, and total sales numbers start to go back up. Nobody really knows the answer to that question.

There is one thing that I do know for sure: if you are in a position to buy a home, right now is a probably the best time that I've seen in a very long time to do so. When you combine the large inventory of homes on the market, interest rates once again below 5%, great prices, and an $8,000 tax credit for first time buyers (which will hopefully be extended in some form) you could not have a better scenario for buyers. If you are sitting on the fence about buying because you are trying to "time" the market then you may look back in the Spring and say "Boy, I wish I had bought last year when things were cheaper!"

There were 67 residential homes that changed hands in September 2009 in our Lakes Region of NH list of communities. That is on par with the 69 sales that occurred in September of 2008. There were 507 residential sales so far this year compared to 508 through the first three quarters of 2008 so we are also pretty consistent there.

The average sales price last month came in at $292,896 which is up from the $278,476 average posted last September. That little bump up in the average sales price in September looks encouraging, but the average sales price for the year to date came in at $276,740 compared to $361,817 in 2008.

The median sales price dropped from $236,000 in the first three quarters of 2008 to $183,400 this year indicating that many more lower priced homes have sold. So far this year 277 homes sold under the $200,000 mark which represents 55% of the total sales. Last year there were 171 sales under $200,000 which represented only 34% of the sales.

Even though much of the drop in the average sales price this year can be attributed to the fact that it is mostly low priced homes that are selling, there is no question that regardless of the price range you are looking in you can find your dream home for a lot less money right now. So here's the real question for those of you that are on the fence: shouldn't you buy now instead of waiting until the market goes up? And if you haven't thought about buying, maybe you should...

Residential Homes Sold September 2009

Compiled using the NNEREN MLS system as of 10/12/09.