Roy Sanborn --Lakes Region of New Hampshire

Giant Attitude

The total number of residential listings available as of February 1 for the eleven towns listed in the Lakes Region of NH came in at 793. That compares to 736 last February and 778 in January.

It certainly feels like the market is getting a little busier here in the Lakes Region of New Hampshire since the holidays. A number of other agents, home inspectors, and mortgage brokers also have commented that they are seeing increased activity. There are some key ingredients present that should allow us to have a better market in the Lakes Region this coming year. Interest rates are truly phenomenal right now and are running ¾ of a point lower than last year. There's also a lot of inventory available with many, many homes already greatly reduced in price. So there are some deals to be had. We are seeing some savvy buyers that recognize that you don't often see low prices and low interest rates at the same time. And we have some sellers who have realized that even if they have to sell for a little less now they can make it up on the other end when they buy something else. A ready, willing, and able buyer in this market can often negotiate a pretty good deal.

Will prices go even lower? An article in this month's Business Week predicts a drop in pricing nationally of up to 25% over the next two years. Are they right? Remember, most people picked the Patriots to win the Super Bowl. Nothing is a given. A lot depends on the attitude of buyers and sellers. And, more importantly, it depends upon which segment of the marketplace you are in and where you are located. We are not in the hard hit, troubled areas like California, Florida, or Michigan. There could be a decline in prices here in the Lakes Region over the next year, but not to the extent predicted nationally. We really are a very different kind of market.

With many sellers eager to move their property, lots of inventory to choose from, and extraordinary low rates, this year could very well be a better year for our market. We just need the buyers to get off the sidelines and get in the game with a positive attitude. Kind of like the Giants.

Lakes Region Real Estate Market Report - Lake Winnisquam

Lake Winnisquam in the Lakes Region of NH has always been a great alternative to Lake Winnipesaukee for buyers looking for to own a home on the water that is little more affordable. Winnisquam is the third largest lake in New Hampshire at 4,264 acres and offers home owners and vacationers a little more laid back kind of lake experience. The lake is large enough to keep you and the kids entertained yet small enough to keep the big speed boats away, so things are much more quiet and peaceful here. You'll see lots of pontoon boats, people fishing, and lots of people hanging out at the sandbar by the Winnisquam Bridge. It is just one great lake!

We usually see a couple dozen sales per year on Lake Winnisquam. The following chart gives you the sales on Lake Winnisquam since 2003 and as expected sales for 2007 were off the mark from previous years. Prices range from just under $300,000 to occasionally breaking the $1 million mark. Like any lake, pricing is all about the location and water frontage. Waterfront sales on the lower end of the pricing scale were often on the canals on the Belmont side of the lake. While they did provide good boating access to the main lake they aren't really what I would consider great waterfront properties particularly if you like to swim off your dock!

Lake Winnisquam Sales Comparison

Our real estate market in the Lakes Region of New Hampshire depends tremendously on second home and vacation home sales. Condominium sales are a big part of that category. Condos are often a more affordable option for many buyers. They also appeal to buyers that want to vacation in the Lakes Region without the hassle of maintaining a home. We'd all rather be enjoying outdoor activities in the summer rather than mowing the lawn or staining the deck! Condos also are often a great alternative for retirees and first time buyers just getting into the wonderful world of home ownership. Buyers will find condos primarily located in the towns of Laconia, Meredith, and Gilford.

The price of a condominium in the Lakes Region can run from very affordable to fairly expensive depending upon the size and quality of the unit and the amenities offered by the condominium community. Prices range from a low of $50-60,000 up to a bit over $600,000 for properties in places like the exclusive waterfront community of Grouse Point in Meredith. Other notable waterfront communities like South Down Shores in Laconia offer many different options for buyers in 18 different villages within the complex. You'll also find a host of amenities such as direct beach access to Lake Winnipesaukee, a marina, lots of green space, tennis courts, and walking trails.

There has been a proliferation in the past few years of "affordable", newly constructed condominium communities in Laconia and Meredith priced in the $165-200,000 range. While smaller in size, these homes offer many nice features at a more reasonable price. These communities target first time buyers as well as second home buyers that are on a budget. While these communities don't come with any notable amenities there is so much to do in the Lakes Region you really don't have to have a lot of amenities on site anyway!

The chart below shows that 2004 was a boom year in condo sales in the Lakes Region with a total of 325 units sold in the three towns listed. Since then, each year has brought a drop in overall sales down to 200 sales in 2007. However, condo sales in Laconia remained level from 2006 to 2007 which I think is a positive sign along with the fact that the average price of a unit has increased every year in Gilford. Condo sales in Meredith remained pretty consistent other than 2006 which shows not only a spike in sales but a drop in the average sales price. This was due to sales in a newly constructed, affordably price condo complex.

Condo sales will remain an integral and extremely important part of the Lakes Region's real estate market. More communities are on the drawing board and some are expected to begin construction in 2008. We can only hope that the overall housing market will stabilize and the demand will be there for these units once constructed.

To see all that the Lakes Region of New Hampshire has to offer for condominums, visit www.lakesregionhome.com .

A New Year...

The total number of homes changing hands in the eleven towns listed came in at 42 in December of 2007 compared to 61 in December, 2006. Not a great finish to a not so great year for real estate as far as the number of sales are concerned. In Belknap County the total number of sales was off almost 14% this year compared to last year but the total sales volume was down only about 4%. This results in an actual increase in the average sales price for homes in the county increasing from $328,694 to $366,004. That is about an 11.5% increase. But don't get excited and think that prices are going up on your every day home.

This average price increase is due to a larger number of high end homes being sold compared to those in the lower priced tier. In 2006 there were 49 homes sold in Belknap County priced over $750,000. The total sales volume for those homes was about $65.8 million. In 2007 there were 68 homes sold that were priced over $750,000 with a total sales volume of almost $94.6 million. For homes below $750,000, the total number of sales as well as the sales volume dropped. In 2006 there were 789 homes sold totaling $209.7 million in sales. In 2007 there were only 657 homes sold for $170.8 million in sales. The average price for homes below $750,000 dropped slightly from $265,772 in 2006 to $259,904 in 2007.

What does this all mean? Is there a silver lining? Well, to me it means that the Lakes Region is still attracting high end buyers who want to live, retire, or vacation here. They are willing to spend large sums of money to purchase, remodel, or build new homes and that is great for our local economy. And as far as I can see, a drop in the average price for homes under $750,000 of only $5,800 is fantastic news compared to what we are hearing about in the rest of the country. So despite all the doom and gloom about housing and the financial markets, I am looking forward to the New Year knowing that we are indeed better off here in the Lakes Region than most areas. I also believe that armed with a little knowledge, help, and proper pricing that you will be able to sell your house in the New Year!

DECEMBER 2007 RESIDENTIAL SALES

For additional reports, real estate news and information, Belknap County foreclosures, and a whole lot more visit www.lakesregionhome.com or www.lakesregionrealestatenews.com

The following waterfront homes sales were located on Lake Winnipesaukee in the Lakes Region of New Hampshire. Lake Winnipesaukee is known around here at the "Big Lake" or "Winni". It is NH's largest and busiest lake. Its length is 22.9 miles, width is 7.5 miles, and with an average depth is 62 ft. She is a great lake for boating, sailing, and all kinds of water sports and activities. The Big Lake is bordered by eight unique communities: Alton, Center Harbor, Gilford, Laconia, Meredith, Moultonboro, Tuftonboro, and Wolfeboro. Each community offers its own style of lakeside living.

While other segments of the real estate market in New Hampshire are feeling the pinch of the credit crisis, the waterfront market in the Lakes Region is still going stong as evidenced by the following report. For additional reports, news and information about the Lakes Region of New Hampshire visit www.lakesregionhome.com or http://www.lakesregionrealestatenews.com