Localism: Ithaca, NY

Looking for an explaination? ---- Ithaca Real Estate Market

Mon, 27 Oct 2008 13:43:59 -0500

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.

Another winter approaches ---Real Estate in Tompkins County NY

Wed, 22 Oct 2008 11:10:47 -0500

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...

2008 Residential SOLD
School District	Average List	Average Sold	# of properties sold
Candor	127,450	121,250	8
Dryden	161,949	157,434	69
Groton	142,677	135,916	36
Ithaca City	250,421	243,161	351
Lansing Central	251,965	242,290	56
Moravia	125,025	112,375	14
Newfield	170,680	164,300	13
South Seneca	160,067	162,000	22
Southern Cayuga	140,450	124,233	16
Spencer/VanEtten	119,805	118,060	18
Trumansburg	227,930	230,888	34

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...

National Association of REALTORS Economist Lawrence Yun spoke at NYSAR Association Update...

Wed, 17 Sep 2008 20:45:42 -0500

...and it was very interesting what Mr. Yun had to say. He reviewed the national market trends in real estate, mainly in the residential sales pricing area. Also highlighted NYS statistics. Many economists predict that the housing market hasn't hit the bottom yet, but will do so sometime between now and the end of 2009 and in fact, many predict an upward swing in the market in early 2009. So buyers who are out there trying to 'time the market?" NOW is the time to make your offer...if you wait until Spring 2009, you may be too late! Want to know more? Just email me...

September in Ithaca

Wed, 17 Sep 2008 20:41:32 -0500

I am just back from the state REALTOR meetings in Saratoga NY. What a lovely week - sunny, pleasant. I had the most delicious caramel gelato there...even tho it was $4.85 for a small cone! Lots of real estate tips and insights from these meetings. While they are really business meeting of the NYS Association of REALTORS, there is much to be learned from peer discussions. I am proud to say that I have been voted in as Regional Vice President for the Southern Tier Region for 2009-2010!!! This covers the Ithaca, Cortland, Binghamton, Elmira-Corning and Otsego-Delaware boards of REALTORS. I am looking forward to meeting with my colleagues from other neighboring boards to learn about their issues and priorities for 2009 and beyond! In the meantime, I am back in Ithaca helping buyers and sellers with their moves.

What Sellers are Saying

Tue, 19 Aug 2008 15:32:01 -0500

Sellers whose homes have not sold in the peak selling market of Spring and Summer are worried. Not enough showings, no offers and how are they going to get their homes sold. The biggest problem seems to be, as always lack of communication, between the listing agent and the sellers. Agents don't like to talk to sellers when they have no good news, no activity to report.

The sellers at today's listing appoiintment have had their home listed since February. They have made price reductions; both times they suggested the reduction to their agent. Other complaints were that the agent never made suggestions of what they could do to enhance their home through buyers' eyes. They were of course concerned that their home will not sell if they do not get buyers in to even look at the house.

The solution is simple but not simply executed. Honest, prompt and on-going communication. We can't change the market but we can try to make the selling process as "pleasant" as possible. First, sellers need reassurance. They are "hurt" that no one likes their home. They need a reality check....honest pricing and suggestons about what needs to be done to get their house sold. They even accept some of the responsibility. Perhaps they priced the house too high to start. Mostly it sounds like they were not educated about the process or the market. Education needs to be on-going.

Many sellers are ready to move on. Not just to their new life in a new community but until that happens, to a new agent. Someone who can help them move the process forward. They don't want false promises. They are more saavy about the professionals they choose. This is a great opportunity for agents to prove they are professionals and despite a soft market work with these motivated sellers to markeet the home, bring in new buyers and hopefully put up that red SOLD sign.

Beth Carlson Ganem

Lic. Real Estate Associate Broker

Audrey Edelman Realty USA