Roy Sanborn --Lakes Region of New Hampshire

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.

No More Rabbit Ears....

Our residential inventory in the Lakes Region of New Hampshire 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 SEPTEMBER 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 for the homes I track here in the Lakes Region of NH 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.

Improving The Odds

The inventory for our area towns here in the Lakes Region of NH is steadily increasing as the summer months approach. We stand at 1128 homes on the market as of June 1 compared to just 898 homes as of April 1. Our inventory always rises during this prime time selling season. That means a lot more competition if you are trying to sell your home. And with fewer homes changing hands you may want, or need, to increase the odds in your favor to make your home one of the ones that does sell. The homes that sell, sell for a reason. Usually, the reason is that the buyer saw real value in a particular home and decided to purchase that home instead of one of the many others that were viewed. Buyers comparison shop now more than ever. There is little urgency on their part due to the high inventory and slow sales pace unless they see the urgency of a great deal that could be missed.

If you look at the previous 12 months there were 775 homes sold in these towns. With 1128 homes on the market, this translates to a little over 17 months worth of inventory on the market right now if sales stay at the same pace as the last 12 months. This compares to having about 11 months of inventory available in June 2006 and 14 months inventory in June 2007. Having 17 months worth of inventory on the market is not real encouraging if you need to sell your home quickly. But you can significantly improve the chances of selling sooner by making your home the best buy in its price range. Again, it falls back to creating value for a buyer. Make your property show the best that it can by decluttering, cleaning, painting, repairing, and staging your home to show off its best features. Make sure that you have the best curb appeal possible. Your REALTOR® can help you with some suggestions and recommendations. If your home is already in great shape and shows beautifully and you are not getting the activity you want, you may have to consider a price reduction in order to create that value and make your home the best bargain out there. If you can't reduce your price than you may have to rely on a good dose of patience and persistence in the market place to bring you that elusive buyer.

Homes Available as of June 1, 2008