Roy Sanborn --Lakes Region of New Hampshire

The Modular Option

A short sale may be the answer...

You might be able to put lipstick on a pig, but that won't change the fact that the number of homes sales are down and things are pretty quiet in the real estate world right now. If there was ever a year where we need to get the elections behind us so the country can get back on track this is definitely it. There was a total of 69 residential homes sold in September in our Lakes Region of NH towns. That is down from the 88 transactions last September and 85 in September 2006. Looking at the whole year thus far, a total of 508 homes were sold during the first three quarters of this year at an average price of $361,817. That puts us 22% off last year's total of 652 units for the same period. Not great, but it could be worse. If there is any good news in these numbers it is that we are only about 8% off last year's average sales price of $394,915 for that nine month period. I don't know about you, but to me that sounds a whole lot better than the percentage the stock market is down!

Unfortunately, these tough economic times are forcing a number of homeowners to sell their homes. Even more unfortunately, because of the recent decline in real estate values many homeowners won't find a buyer at their current asking price. It goes without saying that any homeowner would like to sell his property at a price that covers his current debt. So usually he sets the asking price based in part on that mortgage payoff amount. But if the homeowner owes more on the house than what it is worth in today's market he is not likely going to be able to find a buyer. One solution to this seemingly "no-way-out" situation is the short sale. A short sale is when a lender agrees to accept less than what is owed on a property so that the property can be marketed and sold at a price more in line with current values. If a recent hardship has resulted in the inability of a homeowner to keep up with the mortgage payments, many times the lender is willing to negotiate a reduced payoff rather than going through a costly foreclosure process. More importantly, the short sale process is a solution for the homeowner that prevents a foreclosure or bankruptcy situation that would damage his credit rating even more.

Residential Homes Sold September 2008

More Affordable Homes Available

The number of residential homes on the market in the Lakes Region of NH has dropped ever so slightly from 1313 last month to 1301 listings available as of October 1. This represents a 23 month supply of homes on the market and that it is daunting number of homes to sell. And while there are a lot of homes available in each price range, it is interesting that the percentage of affordable homes, those in the $100,000 to $200,000 range, has been increasing yearly from 16% in Oct 2006, to 18% in Oct 2007, to 22% currently. Over the same time period, the percentage of homes in the $200,000 to 300,000 range has dropped form 34% in 2006, to 31% in 2007, to 27% currently. It would seem that these numbers reflect the downward pressure on pricing as well as a number of bank owned properties coming on the market. If there is any silver lining with the current market it is that there are many more affordable homes on the market to choose from for lower income or first time buyers. A bit of other good news on the national level is that pending homes sales rose 7.4% from July to August putting that index at the highest it has been since June of 2007. Hopefully that trend will continue.

You can't escape the news about the financial market meltdown and problems in the mortgage industry. Every day, every newspaper, and every newscast. So it is worth repeating again and again that the Lakes Region of NH is fairing much better than many other parts of the country even though it might not feel like it. If you are looking to buy a home there is plenty of money available from local banks such as Laconia Savings, Meredith Village, Franklin Savings, and Citizens Bank and other lenders like Wells Fargo Mortgage that did not get caught up in the sub prime lending mess. Because these lenders were more conservative and maintained their standards insisting that borrowers had reasonable down payments, verifiable incomes, and a good credit history they are still able to carry on business as normal, lend money for homes and to businesses and actually increase their business in these tough times. So with all the bad news about Wall Street and Main Street, we are somewhat fortunate to live on the Side Streets and Back Roads of NH.

Scary times, better times coming

We have a good month and then a bad one. August residential home sales in the Lakes Region of NH 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.

HOMES SOLD AUGUST 2008

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