The Lakes Region of NH residential home inventory has ballooned to 1170 listings on the market as of June 1. Last June there were 1128 homes on the market. That’s bad enough, but when you look at the sales over the previous 12 months we are looking at a 21 month supply of inventory compared to 17.5 months last June. This is not good news if you are trying to sell your home in this market.Real estate is not a lot of fun for anyone right now including sellers, buyers, agents, appraisers, inspectors, or lenders. Mostly because there are so few buyers. Why are consumers staying on the sidelines rather than out there buying? And why do those that venture into the market have such a hard time? With a huge inventory to choose from, interest rates at historic lows, an $8,000 tax credit for 1st time buyers, and great bargains available right now it should be a perfect storm for buyers. But it is little more than a drizzle. This is my take on why many people aren’t buying.

You can blame the lack of sales on hard economic times, the uncertainty, or the daily dose of bad news coming out of the boob tube and you’d be partially right. No one feels good about the economy right now so it is tough to get the nerve up to buy something as huge as a new home unless a buyer feels like he is getting the steal of the century. But I think a lot of people aren’t buying because it is just not fun anymore. The market is very confusing right now and there’s a lot of conflicting data. It is hard to get excited about buying when you can’t figure out where the market really is. So it is not surprising that some buyers can’t recognize a good deal even when it whacks them in the face. Some buyers think that they should make ridiculous low offers on what are already reasonably priced properties just to be on the safe side. I’m not saying buyers shouldn’t get the best deal they can on a home. They should and it is their REALTORS® job to help them get it.

But buyers need to understand that they are buying the home, not the “deal”. It is almost like buyers have a misconceived notion, probably fueled by news reports from California or other hard hit areas, that all houses should be half price. REALTORS® need to do a better job explaining that home ownership is a long term investment and educating the buyers in the realities of pricing and values. The process would be a lot more successful and FUN if buyers were confident that they were purchasing the right home for them and getting a good value as well.

Think about how you’d feel when you go to buy that brand new, shiny, candy apple red convertible that you have always wanted (this is a guy thing mostly, so ladies stay with me here). Let’s say it is a Corvette (GM needs the help). You have always wanted one, you’ve studied and researched the options, the engine, and you know what to expect for a price. You shop and find two or three sitting at the dealerships and pick the one you like the best and buy it. There is excitement, anticipation, and you can’t wait to pick it up and go for a spin. You got want you wanted at a price that you knew was fair. Boy, this is fun! Now compare that to buying a 4 door sedan for your business and you have to concentrate on the deal only because the car doesn’t matter. It is only about the deal. Two total different experiences in buying. One is fun and fulfilling and will brings you joy and the other really means nothing other than you bought a car and you can say you got a good deal. Buying a home should be fun and exciting too! And it will be if buyers, with the help of their real estate agent, approach the process in the right frame of mind.

So start your day of home searching by doing something like going to have ice cream at Ben and Jerry’s (preferably with your agent) to set the proper tone for the day. Then go look at the properties that really fit your needs and your pocketbook. Focus on finding the house that excites you the most and that you’ll be happy in for years to come rather than just finding a deal. That sounds a lot more like fun!

Residential Homes Available June 1, 2009

Report covers the towns of Aton, Barnstead, Belmont, Center Harbor, Gilford, Gilmanton, Laconia, Meredith, Moultonborough, New Hampton, Sanbornton, and Tilton and is complied using NNEREN MLS data.

This entry was posted on Thursday, June 4th, 2009 at 4:10 pm and is filed under Lakes Region Home, Market Report Posts. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.