February is here and the days may be getting longer but the home inventory in the Lakes Region of NH is getting larger. We edged up from 869 homes on the market last month to 926 homes listed as of February 1 with a current average asking price of $590,214. That is on par with last February when the inventory stood at 923 homes, but the average price was lower at $548,470. Currently, we have a 15 month supply of homes on the market based on sales numbers over the past year. That is still about three times what is considered a normal or good inventory level.

As reported previously, the average sales price of homes is definitely down in the Lakes Region as well as the rest of the country. I thought it would be an interesting exercise to break the numbers down a little further and see how the individual communities faired over the past four years. Both the average and media sales prices peaked in 2007 and in the last two years slid lower ( 20% and 14% respectively) than the numbers shown in 2006. Of all the towns in this report, New Hampton was the only one to stay in positive territory with a slim .57% increase in the average sale price. The smallest decrease since 2006 occurred in Gilford with a 4.7% drop and Gilmanton with a 9% drop. Gilford’s strong waterfront market probably helped stabilize the average but then again Moultonborough, which had the highest number of waterfront sales (but not the highest waterfront average), dropped 28%.

The biggest decline in average sales prices was in Barnstead at 37.7% . The median sales price (the amount paid for a property where half of the properties sell for less and half sell for more) in Barnstead was also down the most since 2006 at 37.7%. This indicates that there were a lot more low priced homes (and a large number of foreclosures) being sold and thus the lower average sales price. The same scenario is true in Laconia where the average sales price dropped 22.8% and the median price dropped 28%.

As I have mentioned in previous articles, these averages and percentages don’t necessarily mean that if you live in Laconia, for example, that your property is worth 22% less then it was worth in 2006. The average sale price is reflective of market conditions, what homes sold and for how much, and in what price bracket. You might have to living on another planet not to be aware that home values have dropped, but the question is how much? I believe that this is on a case by case basis. Desirable, nice quality homes still sell in any market and bring fair and reasonable prices that are usually above the averages. The best way to determine the value of your home is to have your REALTOR® provide you with a current market value analysis based on recent similar sales in your area. But, like anything else, the real value is of your home is ultimately determined by what someone is willing to pay for it…

Lakes Region Real Estate Year End Review

It is not only the end of the year, it is the end of the decade, so it is the perfect time to review home sales in the Lakes Region of NH!  First, a quick look at December. There were 68 residential home sales this past December compared to just 58 in December 2008. That’s a 17% increase which should make us all feel pretty good! However, the average sales price was down from $373,130 in December 2008 to $290,008 in December of 2009. That’s a huge decline, however, comparing the same month in different years doesn’t generally mean a whole lot. Statistics looking back over a year or a decade are much more meaningful but even they can be somewhat misleading.

There were 720 residential sales in the communities in this report for the calendar year 2009. That’s about a 6¾% increase over the 675 homes sold in 2008. While that may not be a tremendous increase in sales it is, nevertheless, a very positive sign. Of the homes that sold in 2009, 401 of them (or about 56%) sold for less than $200,000. In 2008 there were 259 sales under $200,000 which represented just 38% of the sales. This increased activity on lower priced homes reflects the fact that a number of first time buyers and possibly even a few investors were out there picking up some deals. First time buyers were happily taking advantage of the $8,000 tax credit here as well as across the country. That’s a great closing gift courtesy of Uncle Sam!

Homes in the $200-300,000 price range struggled a bit in 2009 with 145 sales compared to 198 in 2008. The $300-400,000 price range came in at only 65 sales in 2009 compared to 81 in 2008. There were 109 sales over $400,000 compared to 137 in 2008. The big drop was in total number of sales over $1 million where there were 37 sales in 2008 that represented $64 million in total sales volume but only 18 in 2009 for a total volume of $42 million. The overall total sales volume was also lower at $209 million in 2009 compared to almost $236 million in 2008.

The net result of these shifts is that the average sales price for the calendar year 2009 came in at $29,884 which is 15% lower than the $348,688 average in 2008 and a whopping 27% off the $398,719 average of 2007. Both the current median and average sales price are now very close to those registered in 2003. Before we all jump off the nearest bridge, this doesn’t mean there has been a 27% across the board decline in property values since 2007. While property values have certainly declined over the past two years, the average price is down in large part as a result of what was actually sold. The lack of mid-range to high end home buyers over the past several years has dramatically and negatively impacted the sales price averages. As our economy begins to improve these buyers will return to the market and our average sales price will increase.

But there is no doubt that property values have indeed declined in the Lakes Region of NH somewhat over the past couple of years. To determine just how much your property value has changed, have your REALTOR® provide you with a market value based on sales of similar properties in your area. If you have a nice quality, well maintained home, it may not be as bad as you think…

A Bold New Decade In Real Estate 

The New Year started off with 869 homes listed for sale in the towns in this Lakes Region of NH Real Estate Market Report. That’s a big drop from the 1044 homes on the market as of December 1, 2009 and slightly lower than the 900 homes on the market January 1, 2009. There always seems to be a lot of homes that expire on December 31 of each year. Unfortunately, they slowly work their way back onto the market. The average asking price for homes in the area has actually gone up from $527,122 last January 1 to $613,371 on this New Year’s Day. The increase in the average asking price is most likely a result of more high priced homes on the market rather than any surge in asking prices although there are still many, many overpriced homes especially on the upper end of the market. The 869 homes currently on the market represent about a 14.5 month’s worth of inventory.

As we enter a new decade, it is clear that the real estate marketing world will undergo some dramatic changes. What can we look forward to? Obviously, the computer and the internet have completely revolutionized the way people buy homes, and for that matter, everything else. Having a buyer walk into your office looking for help in finding a home is generally viewed as cause for great celebration by the agency’s managing broker. It just doesn’t happen much anymore. Today’s elusive buyers do their shopping on the internet. Once they have zeroed in on what they like and have compiled a list of homes that they would like to see they might give an agent a call or more likely send an email. But this is nothing new, as this has been the standard operating procedure for a while now.

What is new is the huge role that technology will play in marketing homes and how it will evolve in order to reach and connect with technology savvy buyers. No longer will it effective to market a property by using the old MLS system and feeds to agency websites offering 6-12 fuzzy photographs and even fuzzier property descriptions. Sellers deserve and will expect a much broader and more professional marketing campaign to reach out to potential buyers. One big evolution in marketing is the use of social networking sites like Facebook, Linked In, and Twitter to reach and interact with potential buyers and sellers. The use of video and podcasts promoting properties on websites, blogs, and sites like You Tube will be much more prevalent. People are visual. Information about real estate (beyond the routine and often mundane property data found on the MLS listing sheet) will be found on real estate blogs.

Buyers want information and they want it now, no matter where they are. Today’s smart phones are more like mini-computers than phones and like every other electronic device they will only improve and become more powerful. Not only can you surf the web and email from your smart phone, now you can see all the current real estate listings on it. You can see all the homes in any given area, get property information, and see photos along with a Google Map of where you and the houses are located (to get the application on your phone just Text: RRG To:87778). This application is perfect for anybody just driving around looking for homes! There is no doubt in my mind that real estate applications will soon be available on in-car GPS devices like Garmin and Tom-Tom.

The use of virtual tours comes as standard equipment in just about every agency’s marketing program, but did you know that “virtual home staging” is a reality right now. Everyone knows that empty homes are a little more difficult to sell just because they are…well, they are empty and many people just can’t envision where the sofa and TV go. Beautiful virtual furniture can be placed in empty rooms to create that appealing lived-in look at a fraction of the cost. I can’t wait for the virtual home make over program that can show buyers what can be done with that fixer-upper that needs the wall paper taken down and a wall removed. How far into the future will it be before we see true 3-D virtual home tours? Perhaps not far…

But through all this technological advancement, the real estate business will always remain a true “people business”. It will be the brokers and agents that will institute and utilize these advancements to better serve the buying and selling public. And despite the evasive nature or the desire on the part of many buyers to remain virtually invisible to the last possible moment, ultimately it will come down to agent relationships, personal interaction, and good old fashion negotiations to make a deal happen!

Winnipesaukee Waterfront Sales Report December 2009

After a very busy November on the the big lake we finished off the year with 3 more waterfront sales with a volume total of a little over $4 million.  The largest sale was in Meredith on Wagon Wheel Trail for $2.99 million, one in Moultonborough on Homestead Lane for $610,000, and one down in Alton on Farmington Rd for $500,000.

Click on the picture for details of these sold properties.

 As always, you can see the latest waterfront listings on Lake Winnipesaukee by clicking here or you can get information on and search for waterfront on any lake in the Lakes Region of NH by clicking here!

Lakes Region Home is you best source for exploring all the communities and homes in the beautiful Lakes Region of NH and Lakes Region Real Estate News will ensure that you are armed with all the latest market trends and data!

Real Estate New Year’s Resolutions

Well, 2009 is winding to a close and it is natural to think of New Year’s resolutions and what the New Year might bring. Most people often resolve to lose weight, exercise more, quit smoking, quit drinking, eat right, and spend more time with their family. I am sure there are two or three people that have actually succeeded with these. I think they live somewhere in Indiana. I was trying to come up with some New Year’s resolutions that would apply to real estate and that would be extremely helpful if you are selling or buying a home. There were undoubtedly many, many times in 2009 when buyers and sellers just couldn’t quite see eye to eye in order to make a deal on a property and now in retrospect wish they had. Ah, the wondrous power of 20/20 hindsight!

As real estate agents, we know that deals fall apart all the time over things that seem miniscule when viewed in terms of the overall goals of both the buyer and seller. It drives REALTORS® nuts as we know more often than not that just a few months down the road sellers will be asking “What about that guy that made the offer before, is he still looking around?” Many times we are able to convince the buyer or seller that they should just swallow their pride and accept the deal on the table and move on with their lives. But just as many times the parties get frustrated, dig their heels in, refusing (in their mind) to be taken advantage of, and kill a deal that is within a sliver of being done. So with that thought, here are a few resolutions for those that had “near-deals” in 2009:

Resolutions for the Frustrated Seller to be used the next time he receives an offer:
1. I will recognize that not all buyers are only interested in stealing my home. Many of these creatures are actually human.
2. In the spirit of true negotiations, I will try to work with even a low ball offer and make a reasonable counter offer (no, not $500 off the asking price!)
3. I will consider the fact that maybe, just possibly, my house is not worth what my neighbor’s house is nor regrettably what it was worth what I paid for it two years ago. I will try to understand that the buyer is not trying to screw me.
4. I will not be upset about the fact that the buyer’s home inspection has revealed some defects that need to be corrected or that the buyer expects some quid pro quo for it.
5. I resolve not to take anything said or done by the buyer personally.
6. I resolve to smile more and enjoy the process, it can be fun.

Resolutions for the Homeless Home Buyer
1. I will try to comprehend that there is no such thing as the absolute perfect house and that most homes will need some work and maintenance. Don’t expect the seller to pay for your upkeep for the next 10 years.
2. I will understand that contrary to what I may have read or have been told, not every home on the market in the Lakes Region of NH is a fire sale.
3. I will understand that there is a good possibility that a low ball offer could work against me in buying the home I really want.
4. I will understand that sometimes the seller has both an emotional investment in and an attachment to his home that sometimes causes irrational behavior.
5. I resolve not to take anything said or done by the seller personally.
6. I resolve to smile more and enjoy the process, it can be fun.

So what about real estate predictions for 2010? There has been so much doom and gloom for the past three to four years and the market has been so awful that I refuse to believe anything other than we are going to have a great year. Markets are cyclical and my bet is we have turned the corner. Positive signs abound. The biggest change may be the more positive attitude of the buying public. I don’t expect it to be a banner year, but certainly stronger than the last two barring any further man-made economic disasters on the national level.

And as far as my New Year’s resolutions are concerned, I’m just going with #6 above. Happy New Year!

The Largest Winnipesaukee Waterfront Sale in History…

The month of November hasn’t been particularly robust for the housing market in the Lakes Region over the past few years. Let’s face it, the weather turns cold, it is dreary, the tourists are gone, and people start to think a lot more about the holidays than houses. November is certainly not the “prime time” for selling a home. But the buyers that are out looking are definitely serious.

We had a total of 72 residential home transactions last month which I think is fantastic! Last November only 38 homes sold and in November of 2007 there were only 56 sold. The 72 sales registered last month were still well below totals posted in November, 2003 at 104 homes and 2004 at 108 but it sure feels like we have bounced off the bottom just a little for a change!

It is no surprise that almost 60% of the sales were below $200,000 compared to 50% last November indicating again that the first time buyer and bank owned properties are the main game in town. But, remember, I said the serious buyers are out this time of year? There were four sales in November over $1 million, but the big news is that we had the highest price waterfront sale in history on Lake Winnipesaukee at a record $7.8 million! That is one SERIOUS buyer!

This property is located on Wagon Wheel Trail in Meredith and is a spectacular 8.3 acre waterfront lot with 1,500 feet of frontage, 259 feet of beach, and has awesome sunset views to the West and South. The property is surrounded on three sides by beautiful stone and wrought iron walls and has a magnificent stone boat house that cost in excess of $1 million to build. There is an older 2 bedroom ranch style home on the property that will undoubtedly make way for something just a tad larger and more fitting for this beautiful spot. The property was originally listed for $11 million and was on the market for 399 days. Roche Realty Group not only had the listing but brought the buyers!

Both the buyers and the sellers were extremely happy with the negotiated outcome and the seller has already purchased another waterfront estate just a few doors down on Wagon Wheel Trail demonstrating his faith in the Lakes Region Real Estate Market. Who says Christmas never comes early? The holidays this year will be a just a little bit brighter for all those parties involved in this transaction!

November 2009 Lake Winnipeasaukee Waterfronts Sold

The fall and winter months are when the serious waterfront buyers are out there looking around. After all, a nice little waterfront estate would make nice Christmas gift for the wife and it is too late to enjoy the summer if you buy one in August!!

There were ten waterfront sales on Lake Winnipesaukee in November (click on picture to see details), four of which were over $1 million, but the big news is that we had the highest price waterfront sale in history on Lake Winnipesaukee at a record $7.8 million! That is one SERIOUS buyer!

This property is located at 50-60 Wagon Wheel Trail in Meredith and is a spectacular 8.3 acre waterfront lot with 1,500 feet of frontage, 259 feet of beach, and has awesome sunset views to the West and South. The property is surrounded on three sides by beautiful stone and wrought iron walls and has a magnificent stone boat house that cost in excess of $1 million to build. There is an older 2 bedroom ranch style home on the property that will undoubtedly make way for something just a tad larger and more fitting for this beautiful spot. The property was originally listed for $11 million and was on the market for 399 days.

Both the buyers and the sellers were extremely happy with the negotiated outcome and the seller has already purchased another waterfront estate just a few doors down on Wagon Wheel Trail further showing his faith in the Lakes Region Real Estate market. Roche Realty is extremely proud to have handled both sides of the transaction in this record breaking sale!

You can also see Lake Winnipesaukee waterfront homes that have come on the market in the last 7 days just by clicking here!     

Lakes Region Home is you best source for listings and detailed Lakes Region real estate market information with more detail on the waterfront market then any other site!

Selling your home during the holidays…

Sellers often ask whether it is a good idea to try to sell their home during the holiday season or if it is better to wait until January. Obviously, trying to sell your home during the holiday season can place some additional stress on an already busy schedule. However, the buyers that are out looking this time of year are serious buyers and one thing is for sure: you can’t sell your home if it is not listed. Over the past six years in the communities listed in this report there was an average of 43 homes that went pending in the month of December. This may be down from the 59 sales per month average we have had over the past twelve months, but I would bet that those sellers that did find buyers in December were pretty happy with their holiday gift.

Homes often look their very best when they are decorated for the holiday, so it can be the perfect time of the year to have a prospective buyer look at your home. But there are some things to remember. Make sure your walkway is cleared and sanded and that the entrance to your home is decorated conservatively with a nice wreath and maybe a string or two of lights rather than having it look like Chevy Chase’s house in “Christmas Vacation”. If global warming doesn’t get us this year, an old fashioned snowman would be a nice touch. Put out a colorful Christmas door mat so that visitors can wipe the snow off their feet before entering your home.

Make sure the inside of your home is at its holiday best and spotless. Go conservative on the decorations inside as well. Pick out a smaller tree than you normally get and remove some of the furniture if necessary to make your living room look larger. Instead of putting a lot of presents under the tree, just put a few (yes I know, this year we’ll be lucky to have anything under the tree anyway!) and hide the rest away in a closet. Don’t overdue the decorations to the point that they cover up the important details of your home. We want the buyer to be looking at the house, not the fifty piece Snow Village or a dozen Anna Lee Christmas characters perched precariously on the mantel. Less is more here. Be charming, not tacky.

Lighting the fireplace will help show how warm and cozy your home is during this time of year. Put on some great Christmas songs like Bing Crosby’s “I’m Dreaming of a White Christmas” or “Feliz Navidad”. Playing “Grandma Got Run over By a Reindeer” or ‘Snoopy’s Christmas” won’t create exactly the mood we are looking for. You should also appeal to the buyer’s sense of smell so baking (not burning) some cookies or brownies before the showing will do the trick. Leaving some fresh baked treats out for the buyers (and their agent) along with maybe some Egg Nog is a nice gesture and it might help seal the deal . (I like mine spiked just a little-that could even work on the buyers). The whole point is to show off your home at its holiday best. Creating a festive, warm and appealing feeling will make buyers feel that this just could be the home where they would like to spend the next holiday season.

The total number of residential homes available in the towns included in this marker report as of December 1 stood at 1004 which represents about 17.5 months worth of inventory. That is way more than Santa can haul around in his sleigh! But at least the inventory level is headed in the right direction as this total is down from the 1100 homes on the market last December as well as down from November’s total of 1146. Maybe Santa will help us out by bringing a few more buyers to the Lakes Region this Christmas. Have you done your Christmas wish list yet??

Some Good Buys In October

If nothing else, the real esatate market in the Lakes Region of NH seems to be consistent in many ways. There were 73 residential home sales posted for October in the communities listed in this Lakes Region report. That total is very close to the 71 sales posted last October. The average sales price was down a little bit coming in at $271,339 last month compared to $290,420 last October and $292,896 in September of this year. Just about half the sales this past month were under $200,000 which also seems to be the new norm.

Top honors this month for the highest sale was a waterfront home at 221 Dockham Shore Road in Gilford. It was on the market for $1.875 million and sold very close to that at $1.865 million. This custom built lake home has almost 5,000 square feet of living space, ten rooms, six baths, a gourmet kitchen (of course), full finished basement, covered boat slip, and a detached two car garage with a guest apartment above all sitting on a 1.2 acre lot with 175 feet of frontage. A very tasteful home.

My pick for one of the best deals in October goes to the property at 21 Grouse Hollow in the gated Grouse Point Club in Meredith. This 3,680 square foot, contemporary style home has twelve rooms, four bedrooms, three baths, three car garage, great views of the lake, and was sold with a boat slip. This property was listed in March of 2008 at $1.095 million but finally sold for $675,000. Not only did the buyer get a great deal on the home but he now has access to all the fantastic amenities that the Grouse Point Club has to offer including the indoor swimming pool, exercise room, tennis courts, and beach.

There were some other great values picked up last month in all prices ranges. For example, a ranch with 200′ of frontage on Berry Pond located at 18 Holland Street in Moultonborough was listed at $219,000 and changed hands for $165,000. The property was assessed by the town at $257,500. A Winnisquam waterfront home at 82 Sunset Drive in Belmont was originally listed at $449,000 (assessed for $478,800) was sold for $375,000. This completely renovated, year-round home has three bedrooms, two baths, a huge dock and 55 feet of waterfront. I bet the new owner is happily looking forward to the next boating season. Another nice deal was a 4,800 square foot Adirondack home at 15 Bay Ridge Dive in Meredith that was originally offered at $1.195 million in 2008. It sold last month for $749,000 which is 86% of the town’s assessed value. This home has four bedrooms, five baths, a gourmet kitchen, the requisite cathedral ceiling great room with huge fireplace, and nice views of Meredith Bay on Lake Winnikesaukee.

Of the 73 transactions in October where the assessed value was reported in the MLS, nineteen sales were at 80% or less of the town’s tax assessment. Were they all good deals? I guess only the buyer knows for sure. But then again, he bought it, didn’t he?

The Home Buying Hurdles

Selling a home today is a lot like running a marathon. It requires a lot of stamina and patience because it is a long, long race. On the other hand, buying a home is more like running the hurdles. The race is a lot quicker and requires good timing to clear the jumps. A good trainer and coach can help you win both kinds of races. While there may not be as many hurdles in buying a home as there is in a race there are still some substantial ones to clear before you get the keys to your new home.

Three major hurdles in the home buying process are: getting pre-approved, the home inspection, and the bank appraisal on the property being purchased. You could call finding the right home a hurdle but I call that fun and with so many homes for sale right now finding a good home is not the challenge it use to be.

Meeting with a lender to go over your financial situation, determining credit worthiness, and getting pre-approved is really your first hurdle. Kind of like qualifying for the race. Knowing how much of a loan you qualify for is important, but not as important as how comfortable you feel with your monthly payment. Don’t bite off more that you can chew. Your real estate agent is going to need to know that you are qualified to buy and a pre-approval letter from the lender will tell him that. In the past getting a loan required little more than your ability to breathe and walk across the room to sign you name. The bar was set so low you didn’t have to jump. Today, it could hit you in the forehead. Having a good credit score, a solid income source, and a down payment are the keys to clearing this hurdle. No more gifts in this race, but this hurdle can easily be cleared by any strong homebuyer.

Once you find the home you have always wanted, have negotiated a fair price, and get a signed purchase and sale agreement (which is a pretty good leap in and of itself) the next big hurdle is the home inspection. The home inspection process is one of the two major contingencies in your purchase and sale agreement. A contingency is a condition in the P&S that must be met or waived before you can actually close on your home. Everyone should have a home inspection when they buy a home regardless of its age. In addition to the standard home inspection that covers the structure itself, there are numerous other inspections and tests that can be done for the septic system, radon, lead paint, pests, and water. If nothing comes up of any consequence during the home inspection you obviously have cleared this hurdle.

If the home inspection reveals significant issues or defects that were not previously disclosed to you, this hurdle gets a little bit taller. You can choose to back out of the deal and not buy the house, ask the seller to repair the defects, or ask for another remedy to cure the defects (that would usually be money). It may seem very reasonable to you for your new castle to be perfect and to ask the seller to take more money off the price of the home or to fix something. But that request is not always well received, especially if the seller has already reduced his price and has also accepted an even lower offer. Compromises can usually be reached to satisfy both parties on home inspection issues although there are many deals that come apart at this critical juncture.

Currently, the bank appraisal process is by far the biggest hurdle to get over in any real estate transaction. It was a lot easier when home prices were going up more and more every day and the values seemed to be easy to corroborate. The bar kept going up, but someone would clear it. Pretty soon it was more like high jumping. Then the housing crash. Then the financial crash. Now with fewer sales, foreclosures, and declining values, appraisals are tough and down-right scary on just about every deal. Homes that are clearly overpriced (listen up sellers!) are definitely not going to sell (unless the buyer is a crazy, blind guy with lots of cash) because they won’t appraise. Even when buyers, sellers, and the real estate agents think the value of a property is there, an unexpected low appraisal is still a real possibility. Appraisers have to be very cautious today. Because lenders can no longer choose their appraisers, we often see appraisers from outside of the area who are not familiar with the values and nuances of our area and market which can result in a low appraisal value. Many times, because of the lack of sales, there are no or very poor comparable properties to substantiate the purchase price. The appraisal process can often be a mess.

Having a good a trainer and coach is very important to a professional athlete. They help the athlete reach his goals. A REALTOR© does the same thing with homebuyers (and sellers) by helping them deal with the hurdles in a real estate transaction. We can direct you to any number of local lenders that can provide you with help in getting a great loan, we guide you through the home inspection process and help negotiate any issues that arise, and we provide our knowledge of the local market values to buyer and sellers so that a realistic sales price is reached that will (hopefully) be consistent with the appraiser’s opinion of value. We help buyers clear all the hurdles and win the realty race. But just to be safe, right now, I am still looking for buyers with long legs…