Roy Sanborn --Lakes Region of New Hampshire

Some humor and some wisdom...

Here are a few pretty amusing quotes about housing from some famous people:

"The fellow that owns his own house is always just coming out of the hardware store." Kin Hubbard

"There ought to be a room in every house to swear in." Mark Twain

"Ah, the patter of little feet around the house. There's nothing like having a midget for a butler." W.C. Fields

"The partitions of the house were so thin we could hear the women occupants of the adjoining rooms changing their minds." Mark Twain

"I'm an excellent housekeeper. Every time I get a divorce, I keep the house." Zsa Zsa Gabor

Phyllis Diller said: "If your house is really a mess and a stranger comes to the door greet him with ‘Who could have done this? We have no enemies.'"

No offense is taken by me with the great Will Rodgers' observation: "In a real estate man's eyes, the most expensive part of the city is where he has a house to sell."

On a more serious, but meaningful note: "Have nothing in your house that you do not know to be useful, or believe to be beautiful." William Morris

Sales for single family homes in the Lakes Region of NH communities in this report were up slightly last month to 66 units compared to last August when there were 62 units sold. While the slight uptick in sales is encouraging, we are still significantly off the sales totals of the previous three years. There were 133 sales in August 2005, 103 in 2006, and 109 in 2007. It looks like it will take some time before we can back to those levels. Half of the sales last month were below the $200,000 mark compared to just 34% below $200,000 last August.

The average sales price, however, was up slightly compared to last August due to a couple million dollar plus sales in Gilford that bolstered the average. A nice 1941 vintage, 3 bedroom, 1876 square foot lake cottage with 130 feet of shorefront at 69 Broadview Terrace on Governors Island sold at $1.21 million. This home had stunning views of the lake and mountains beyond. Next door at 55 Broadview Terrace, an exceptional 11,684 square foot waterfront with 270 feet of frontage sold for a cool $6.5 million. It had 6 bedrooms, 8 baths, and featured all the high end amenities and custom features one would expect for that price tag. That sales price ties the record for the highest priced home sold on Lake Winnipesaukee (the other sale for $6.5 million was at 16 Tranquility Lane in Alton in Dec. 2005).

One final quote, which is actually an old Russian Proverb, is something every homebuyer should heed: "Don't buy the house, buy the neighborhood."

Residential Homes Sold August 2009

The modern man cave.

Just a little while ago (like 25,000-30,000 years or so) on the northern slopes of the Pyrenees Mountains in France prehistoric man ventured into a hole in the ground and unknowingly started a trend that would evolve into an important part of the modern home in America: cave decorating. Why did early man decorate the caves?

Well, according to an article I read, early man didn't really live in the caves. There is no evidence of ongoing inhabitation and early man was always on the move looking for food. But in these caves many colorful drawings have been found depicting all kinds of symbols, animals, and birds. The theory is that the drawings were either a way of communicating or that they had some religious significance. Some believe that the Cro-Magnon shaman would enter a cave, go into a meditative trance of sorts, and paint magic animal pictures on the wall perhaps to ensure a successful upcoming hunt. It was likely a place of ritual ceremonies. The cave was, and is, a very special place.

Today's cave, or man cave to use the correct term, is a very desirable feature in today's home---at least to the Cro-Magnon man member of the family. The man cave can be anywhere in a house but it feels more natural when it is below ground in the basement. I think that is an instinctive type of thing. Having the man cave in the basement also has a lot of advantages. It was mostly likely full of stuff you didn't use anyway, it's also cooler in the summer, and you may find it easier to get plumbing to your new wet bar. Besides that, if you put that pool table in the second bay of your garage you, not your wife, will be parking outside in the snow.

Every home needs a space for the hunter of the family to relax and enjoy his passions whatever they may be. Seriously, the man cave is a huge craze now and is an important space to have in any home. It is so big that The DIY Channel has a weekly television show where they custom design and construct the ultimate man cave for some lucky cave dweller. The program is co-hosted by NFL great Tony "The Goose" Siragusa which is kind of fitting considering the importance of football to the modern cave man. You can also visit http://www.diynetwork.com/ to see what they have been up to.

Today's man cave most likely still has paintings on the walls and its inhabitants also go into self induced trances from time to time. However, the paintings are usually of football, baseball, NASCAR, or golfing heroes. The modern cave dweller probably didn't paint them but still worships them like the shamans did thousands of years ago. Beyond the paintings the similarities usually, but not always, end. The modern man cave can be very simple, but more often than not it will have high end finishes, custom woodwork, comfortable furniture, lots of lighting, the obligatory pool table, wide screen TV with surround sound, stereo systems, and a wet bar.

The man cave is, after all, a sanctuary to find solace in and a place to worship the sports gods so it might as well be really cool too. My point is (I think) that if you have a knock-your-socks-off kitchen for the Mrs. and a man cave that meets all of the spiritual and aesthetic requirements of the modern shaman, you probably can sell your house a whole lot easier! It is, after all, still a jungle out there.

Wow! September is here. Where did the summer go? As of September 1 there were 1291 single family homes available in the towns listed in this edition of the Lakes Region Real Estate Market Report. That is up slightly from last month's 1281 total but down a bit from last September when there were 1347 homes on the market. The median asking price came in just about the same as last year at $299,900. The current average asking price of $581,223 is up compared to last September when it came in at $522,865. Over the previous 12 months there were 673 sales in these communities for an average of just over 56 transactions per month. That translates to the same unwieldy 23 months worth of inventory that we posted last month.

As far as the condo market goes, currently there are 325 units for sale at an average asking price of $210,837. Over the past 12 months there were just 158 condo transactions completed at an average sales price of $185,713. Just to put these 158 condo sales in perspective, in 2004 there were 384 condo sold and in 2005 there were 315 units sold. The current inventory level translates to almost 25 months worth of units on the market. So the condo market is definitely struggling as well.

Land sales are even slower. As of September 2 there were 592 pieces of mother earth for sale in the Lakes Region which represents about 7.5 years worth of inventory! The average asking price came in at $240,500 as there are quite a few high end view and waterfront lots on the market. In the past 12 months there were 73 transactions at an average sale price of $104,500. The peak year this decade for total land sales was 2002 with 541 transactions and 2007 posted the highest average sales price at $167,500. People always ask how much an acre of land is going for. The answer varies tremendously and depends on the location, type of land, size of lot, whether there is a view or if it is waterfront parcel. In 2007 the average price per acre came in at $22,846 but ranged from as little as $1,000 per acre up to $1,474,359 per acre for a waterfront lot on Summit Ave in Laconia. Over the past 12 months the average sales price per acre came in at $12,170 but don't expect any kind of great building lot for that kind of money. The highest price paid per acre over the past 12 months was $833,967 for a waterfront lot on Dockham Shore in Gilford. With land, just like houses, you generally get what you pay for...

Residential Homes Available as of Sept 1, 2009

All data compiled from the NNEREN MLS system.

As the debate on the health care industry reform rages across the country, it made me think about the health of the housing industry. Everyone seems to agree that both industries are ailing and need a night or two in intensive care followed by a long convalescence. Several viruses have infected the housing industry affecting both buyers and sellers. Some of these conditions cannot be totally cured, but hopefully, with proper counseling and therapy the symptoms can be controlled so that the patient can lead a more normal life.

In the Lakes Region of NH our housing market, like that in the rest of the nation, has had a pandemic outbreak of acute Listatosis. This is a virally transmitted condition that is difficult to control, particularly if the patient is in an agitated or stressful state. This agitation is usually caused by several key stimuli: lack of money, loss or transfer of job, or divorce. Sudden death also contributes to Listatosis, but obviously the patient is no longer agitated in that case. This outbreak spreads further every time someone contacts a real estate practitioner to list property. No one is sure of the origin of this disease, but it appears to be most likely California or Florida. So how bad is the outbreak of Listatosis in the Lakes Region? A small amount of Listatosis in the marketplace is acceptable and a six month inventory flowing through the circulation system is considered normal. But our current elevated levels (approaching two years worth of inventory) is considered near fatal. How do you cure Listatosis? Usually time will help cure this condition and the swelling will go down by itself. An injection of liquid buyers would certainly reduce the symptoms and speed recovery. Abstinence also helps: i.e., refrain from listing your property unless you really have to and you can do so at the appropriate dosage of price. If you don't listen to your real estate health professional, you might become susceptible to the tragic malady that has also exacerbated the condition of the housing market: OPL Syndrome.

OPL (commonly known as the Over Priced Listing Syndrome) has contributed significantly to the decline in the health of the housing market. It has affected perhaps 40-50% of our housing market in the Lakes Region. It has certainly contributed significantly to the prolongation and severity of Listatosis. OPL has long been considered to be caused primarily by environmental factors. Symptoms of OPL are often witnessed by real estate professionals who come in contact with home owners that want to list and sell their homes for well over what they are worth in current market. Underlying causes of OPL usually include elevated levels of debt and low levels of reality. Many times homeowners also can be delusional and transgress to the recent past when home prices soared like jungle fever. Unfortunately, that is not today's reality. Recent medical studies have shown that OPL can also be hereditary in some instances. Every professional I know has reported at least one homeowner in the past year that suffers from OPL that has shown no sign of any environmental influence yet clings stubbornly to an unsupportable belief that the value of his home far exceeds that of every other home sold in the neighborhood. The subject may act distrustful and combative. Treatments for OPL include ongoing reality counseling and ensuring that the patient stops smoking whatever he was smoking. Large doses of Margaritas or other tropical drinks are optional.

One serious affliction that seems to only hit potential buyers is a new strain of highly contagious Yellow Fever. It has swept across the entire country. Unlike the tropical disease of the same name that is carried by mosquitoes, this version is viral and is spread by word of mouth. And unlike the tropical version this one is not fatal but it does sometimes cause a mental condition called analysis paralysis that makes the decision to buy a new home virtually impossible. Buyers have been frightened into the fetal position by months of bad economic news and then become hesitant to venture into the real estate market despite the widely held prognosis that now is one of the best times in history to buy a new home. Yellow Fever symptoms include cold sweats, shakes, and occasional vomiting. In some cases even the best qualified buyers become lethargic and lay low for weeks if not months. Government agencies have tried to treat these symptoms in a trial program for first time buyers by providing those afflicted with an 8,000 mlg of monetary stimulus designed to invigorate their moods. The WHOA (World Home Owners Association) has collected data quantifying that this program has been extremely successful in treating Yellow Fever in first time buyers. But more needs to be done to help the millions of other afflicted potential buyers. Please contact your representatives in Washington and urge them to continue funding treatments and educational programs for Yellow Fever.

Finally, I urge you to talk to your local real estate health professional about any symptoms or discomfort you may have. That is what we are here for. Trust me, we have seen it all time and again and have undoubtedly treated someone just like you recently with great success.

Many home buyers, particularly those looking for the first time, aren't always sure what to call the different styles of homes that they see. They usually know what a ranch or colonial is, but they may get lost a little with the variations and other styles of homes. Buyers sometimes ask which is the most popular style. I tell them that would be the one that actually sells!

So what style sells the most? Answering that is a little easier said than done as our MLS system has 48 choices to describe the home style and agents often check off several choices to describe a single home. Perhaps that leads to some of the confusion. For example, a ranch starts out as a single story home. When it is placed on a full foundation that is all or partially above ground it is called a raised ranch. The popular 70's variation, the "split level", is really also a type of raised ranch. Agents usually denote these as ranches, correctly as splits or raised ranches, and sometimes as just "1 story". Occasionally you'll see "2 story" ranches if there is finished space in a walkout basement.

A cape is defined as a 1 or 1½ story home with steep roofs and side gables. It should be listed as a "1 story, cape" or "1½ story, cape" because ½ of the second level is unusable space due to the roof pitch. It can also be a 1¾ story home if it had a full dormer. Sometimes, however, it gets described as a "2 story, cape" or even a "3 story, cape". Some of these homes may have a finished basement level, but to me the basement level is living space below ground not a "story". Look at the buttons on an elevator. Then you have the "contemporary cape" with open floor plans and lots of windows and the true "Antique, cape".

Colonial homes also have variations like the "Saltbox" style that often gets confused with a cape or the "Garrison" style which has the second story slightly overhanging the first. One colonial that recently sold had all of these listed as the style of home: "2½ Story, 2 Story, Cape, Colonial, Farmhouse, New Englander, Victorian, Reproduction". Confused? I guess that agent wanted all the bases covered!

Of the 374 listings that sold in the past 7 months it appears that the good old ranch (in all of its variations) was the best seller with slightly over 100 sales followed by the cape style home which had slightly under 100 sales. The colonial style posted about half that number which is not surprising as the sales trend right now is toward smaller, lower priced homes. The rest of the sales were made up of "bungalows", "camps", "cottages", "contemporaries", "chalets", "farmhouses". "gambrels", "log homes", and our own special style: the "New Englander". One option we have is "modified". I'm not sure what that is but I wonder if a newer house that "Joe-the-home-owner" has added a three season porch to should be called a "late model modified" like the stock cars that run at the speedway Saturday night? Thankfully, one style that I have haven't seen used at all around here is "high rise"!

There were 68 residential home sales for the month of July in this Lakes Region of NH report which is up slightly from last July's 62 sales. But it is no surprise that both the average and median sales prices were down as it is mostly the lower priced home that are changing hands right now. The average sales price in July ‘08 was $346,560 versus $278,949 for July ‘09. The median sales price for July ‘08 was $278,949 versus $161,000 for July ‘09. Last July 35% of the homes sold were under $200,000 compared to 64% last month. Year to date we stand at 374 units sold at an average sales price of $258,594 compared to 377 last year at an average of $361,311.

Residential Homes Sold July 2009