About Tompkins County, NY

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RE/MAX is leading if you count signs :-) RE/MAX...more signs, more exposure, more sales...

http://jvhomes.typepad.com/propertycast_madison/2008/10/nov-4th-is-election-day--stephen-colbert-picks-the-winner.html

If you are counting lawn signs...yes.... REMAX is leading!

By Barbara Blanchard, Licensed Broker Associate, GRI with RE/MAX In Motion

We are fortunate enought to live in an area with a stable economy spearheaded by Cornell University and Ithaca College. We never fell victim to the three primary causes that created the housing crisis.

1. Corporate builders saturated areas with thousands of new homes, primarily in states with low property taxes and heating bills.

2. Buyers came, along with the speculators. In some areas, houses doubled in value in a short period of time. Speculators purchased more homes with little cash out of pocket, hoping to cash in on inflated housing prices after holding the houses for a short period of time.

3. As prices rose at an unhealthy rate, many buyers couldn't afford to purchase homes using conventional mortgages. Instead of letting the market correct itself, banks came up with ways to loan people more money than they could afford, using tactics like negative amortization, adjustable mortgages with low starting rates, lowering credit standards, and raising debt to income ratios. They also gave risky loans to speculators. Many of these loans were sold to Fannie Mae and Freddie Mac, who used investors' money (pension funds, 401ks, mutual funds, foreign funds, etc) to purchase them. Builders kept building, speculators kept buying, driving housing prices up, until the market was oversaturated. The builders discounted their unsold houses, bringing down the price on others in the neighborhood: the speculators defaulted on their loans and many people with adjustable rate mortgages, that had reset at a much higher payment, lost their homes to the banks. The banks discounted the houses, driving down prices in those areas causing housing values to drop significantly in those areas. Other people, who had nothing to do with the mess, couldn't sell their homes because they owed more than the adjusted value on their homes, causing more foreclosures. With all the non-performing loans, some banks lost money, as did the investors who purchased the mortgage backed securities.

In our area, real estate is a stable investment that allows us to enjoy a comfortable lifestyle with those we love. If you are thinking about buying or selling a home, just give me a call.

That is the challenge but what is the answer? Historically, in a confident marketplace when buyers want to buy a new home, they find it, and put in an offer. Then put their home on the market. They price their home to sell and within 60 to 90 days everything complete and everyone is happy.

Currently in this market place this method is not working. We have experienced a slow down of offers on properties during our normally active market time, and we now have increased inventory that directly effects value. Buyers won't buy until they sell. They won't even put in an offer with a sale of home contingency. Why not? Don't know how or didn't know you could? It's how you protect yourself from owning two homes?

Bill Crane of CFCU stated today that the biggest challenge they have seen for their clients this year is not credit issues, or a lack of loans available but rather their clients have a home that needs to be sold first. Their homes are either outside the Ithaca market place, or in town and they do not want to be caught with two mortgages.

A good Realtor knows how to write an offer with a sale of home contingency and protect their buyers. A better Realtor knows how to get it accepted. The best realtor will explain it to the seller, advocate for this contingency, will create a WIN/WIN for both the buyer and the seller and see it through to closing. There are many aspects of this contingency that need to be carefully examined and negotiated. Ask questions, if it doesn't make sense ask again.

Currently for October 2008 there have been 66 homes that have had an offer on them. That's alot for Ocotber. 93 homes have made it to the "funding in place ready to close" status. That's great news. However, there are only 5 homes in a sale of home status. This could help everyone, if you are in this dilemma, and don't want to lose out on the opportunity to get the home you really want ask about this contigency.

To find out what it happening in your world of real estate ask a RE/MAX agent, we know our market and we can help you to know yours.

Melissa Miller Broker Owner

Tompkins County woke up to much cooler temperatures this week - a foreshadowing of winter to come. I don't mind the winter; I welcome it. There is just something 'cozy' about the cold temperatures and winterscapes. But we did have a beautiful beginning to autumn- warmer temperatures and beautiful foliage.

So what does this have to do with real estate in Tompkins County? Winter is universally known as a time of year when real estate slows down. I'd like to debunk that myth. Real estate is a changing/shifting market - it is not static. Buyers and sellers and sometimes their emotions dictate the dynamics of the market. Contrary to popular complaints, real estate agents and professionals do not set the prices for the market; buyer's do. That's what market price is --- what a buyer is able to pay for a property. In other words - the actual selling price of a property. Market value (what a property's listing price is) is set by the seller after a comparative/competitive market analysis is done.

Anyway, I digress.

Back to the real estate market in the winter.... it's not a taboo time of year for real estate. It's an ideal time of year to buy. In most cases, sellers are looking to sell before the end of the year and they welcome offers. That doesn't mean that the Tompkins County real estate market isn't in"dire straights". And if you are looking to 'steal' a property, you probably aren't gonna find it here.

So, statistically here's what's going on with Real Estate in Tompkins County...

Statistics from the Ithaca Board of Realtors MLS.

Granted 2008 isn't over yet but this can give you a pretty good idea of what's going on in terms of residential sold properties.

Stay tuned...