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…

The wind roared through the Lakes Region this past weekend and blew most of the leaves off the trees within a two mile radius into my yard. It also blew about 100 residential listings into the expired bin on the MLS system. There were 1146 homes on the market as of November 1 in the communities in this report representing about 20 months worth of inventory. This tally is just a bit lower than the 1218 homes on the market last November. The average asking price came it at $587,664 compared to $536,037 for last November. The median price remained relatively unchanged from last November at $299,900.

Of the 1146 homes offered in the Lakes Region, 53 of them are in what is called a “contingency” status in the MLS system. A contingency status means that there has been an agreement accepted on a property but that there are conditions attached as part of the deal that must be met before the sale can take place. These properties show up in active searches rather than as pending so that buyers can still see them. One of the more common contingencies is when a buyer has a home to sell before he can purchase another one. We have always had buyers who were in that predicament and with the market the way it is today we seem to have many more. But given how hard it is to sell any property today, sellers should think very carefully about accepting and offer with this type of contingency.

Sometimes though, depending on the seller’s situation and other conditions (such as how saleable the buyer’s house is and how strong the offer is otherwise) it might be worth a shot. In this case, a purchase and sale is entered into that allows time for the buyer to find someone to purchase his home but also allows the seller to continue to market his home and possibly find another buyer who doesn’t have a home to sell. The P&S would include a “kick-out” clause which allows the seller to accept another offer from a second buyer. The second offer would only become effective if the first buyer could not come up with a way to remove the contingency of the sale of his home within a short period of time (usually 72 hrs). The second buyer will probably end up with the property as the chances of the first buyer being able to move forward on the deal is usually pretty slim.

The downside to accepting a contingency offer like this is that a contingency status listing just doesn’t get as many showings as those that are listed as “active” in the MLS. But again, given certain conditions (like your home has been on the market for two years and the only person ever interested in it was your cousin Vinnie who doesn’t have two nickels to rub together) it could be a way to get your home sold.

Now for some good news for the housing industry!  Congress approved a bill today expanding the first time homebuyer credit to include homebuyers that have owned homes for at least five years. These buyers may be looking to “move up” and purchase larger or more expensive homes which should help the mid-range priced homes. Buyers can receive a $6,500 credit on homes up to $800,000 as long they enter into a purchase and sale agreement by April 30, 2010. To be eligible buyers must earn less than $125,000 individually or $150,000 per couple. If the buyer doesn’t use the new home as a primary residence or sells it within three years he would have to repay the credit. The first time buyer credit is also extended to April 30, 2010

Residential Homes Available November 1, 2009

Report covers the towns of Alton, Barnstead, Belmont, Center Harbor, Gilford, Gilmanton, Laconia, Meredith, Moultonborough, New Hampton, Sanbornton, and Tilton. Compiled from the NNEREN MLS System.

Winnipesaukee and Winnisquam 3^rd Quarter Waterfront Sales Report –Lakes Region of NH

 It is great to report that the waterfront sales on Lake Winnipesaukee and Lake Winnisquam seem to have held their own over the summer season despite a downturned economy and general reluctance on the part of everyone to buy just about anything. Astute buyers still recognize that waterfront properties are a great place to invest their money. Unlike the stock market and other investment opportunities, buying a waterfront is a tangible, secure investment right now and is something that can really be enjoyed.

In the 3^rd quarter of 2009 there were 26 sales on Winnipesaukee (including island properties) at an average price of $1,076,621. There were 7 homes sold at over $1 million with the highest sale being the property at 55 Broadview Terrace in Gilford that changed hands for a mere $6.5 million.  This is a 11,464 square foot, 6 bedroom, 8 bath home constructed in 2005 sitting on a 1.59 acre lot with 270 feet of frontage. Obviously, this is a fantastic home with all the amenities and quality one would expect at that price.

Year to date, there have been 55 waterfront transactions on the big lake at an average price of $960,961 with a total sales volume of $52.85 million. That represents about 40% of the total sales volume for all the residential properties in the towns that share the waterfront on Winnipesaukee. So how does that compare to last year? In 2008 there were 53 waterfront transactions over the same time period with an average price of $1,314,639 and a total sales volume of $69.68 million. That sales volume represented about 39% of the total sales volume for the same period last year. Pretty consistent.

Sales on Lake Winnisquam got off to a real slow start in the first six months of the year with only 2 sales. However, in the 3^rd quarter there were 9 transactions at an average of $529,667 and a total volume of  almost $4.8 million. The highest sale was at 87 Collins Brook Rd in Meredith at $740,000 for a 4,572 square foot, 14 room, 6 bedroom home, with 170 feet of frontage. The 11 transactions year to date on Lake Winnisquam came in at an average price of $495,409. That average is down from the $620,250 average posted in 2008 but the total sales are up from 8 sales in the first three quarters of 2008.

As with the residential market in general, the average prices on waterfront properties are down a bit signaling that there are some good deals out there for those buyers looking for their slice of the Lakes Region waterfront pie. Currently there are 27 properties available on Winnisquam ranging from $275,000 to just under $2 mil. On Winnipesaukee there are over 130 properties available where you can spend as little as $200,000 for an island property and just under $400,000 for a mainland direct waterfront access. So if you are looking for a waterfront retreat now is the time. I’d be happy to help, especially if you want to match that $6.5 million sale last month!

Home Sales Are Heating Up. Interest Rates Now at 8.5%.

We’ve had six consecutive months of record breaking home sales in the Lakes Region of NH despite interest rates hovering just above 8.5%. Home prices have risen sharply over the past year and we have just surpassed the levels set during the peak in 2005-2006. The scarcity of nice mid-priced homes has resulted in multiple offers and many quick sales at or above full price. First time buyers are having great difficulty finding homes under $200,000 and even when they do the current higher rates often make home ownership just out of their reach.

That’s the future. Now back to reality.

We are three quarters of the way through 2009 and it is probably pretty safe to say that there will be no rebound in the local real estate market this year unless something monumental happens in the next three months. The results so far have been somewhat encouraging in that the market does not seem to have gotten any worse and has leveled out-at least in terms of the total number of sales occurring. The signs are pointing to the fact that we have likely reached the bottom of the housing market. It is just a question of how much longer things will remain at these levels before homes prices, interest rates, and total sales numbers start to go back up.  Nobody really knows the answer to that question.

There is one thing that I do know for sure: if you are in a position to buy a home, right now is a probably the best time that I’ve seen in a very long time to do so. When you combine the large inventory of homes on the market,  interest rates once again below 5%, great prices, and an $8,000 tax credit for first time buyers (which will hopefully be extended in some form) you could not have a better scenario for buyers. If you are sitting on the fence about buying because you are trying to “time” the market then you may look back in the Spring and say “Boy, I wish I had bought last year when things were cheaper!”

There were 67 residential homes that changed hands in September 2009 in our Lakes Region of NH  list of communities. That is on par with the 69 sales that occurred in September of 2008. There were 507 residential sales so far this year compared to 508 through the first three quarters of 2008 so we are also pretty consistent there.

The average sales price last month came in at $292,896 which is up from the $278,476 average posted last September. That little bump up in the average sales price in September looks encouraging, but the average sales price for the year to date came in at $276,740 compared to $361,817 in 2008.

The median sales price dropped from $236,000 in the first three quarters of 2008 to $183,400 this year indicating that many more lower priced homes have sold. So far this year 277 homes sold under the $200,000 mark which  represents 55% of the total sales. Last year there were 171 sales under $200,000 which represented only 34% of the sales.

Even though much of the drop in the average sales price this year can be attributed to the fact that it is mostly low priced homes that are selling, there is no question that regardless of the price range you are looking in you can find your dream home for a lot less money right now. So here’s the real question for those of you that are on the fence: shouldn’t you buy now instead of waiting until the market goes up? And if you haven’t thought about buying, maybe you should…

Residential Homes Sold September 2009

Report covers the towns of Alton, Barnstead, Belmont, Center Harbor, Gilford, Gilmanton, Laconia, Meredith, Moultonborough, New Hampton, Sanbornton, and Tilton. Compiled from the NNEREN MLS System.

It’s in the kitchen…

The kitchen is undoubtedly the most important room in today’s home. It is not just a place to prepare meals, it is also the gathering place, the entertaining space, it is where many family decisions are made, where the kids do their home work, and the place where you manage your daily affairs. The kitchen is generally the most important factor when it comes to someone purchasing a home. A great kitchen will sell your home faster than any other feature. A poorly designed, cramped, and outdated kitchen will keep your home on the market seemingly forever.

You can read everything about kitchen trends on the internet; from colors to cabinetry and flooring to fixtures. I decided to stop in to see Connie Grant at Kitchen Encounters at 730 Endicott St in Laconia to get her take on what is popular. Kitchen Encounters specializes in designing kitchen and bath cabinetry and countertops. Connie, and her husband Steve, founded the company 14 years ago and take great pride in the reputation they have built by providing excellent service and high quality products. You can visit them at www.kitchenencounters.net.

In the Lakes Region of NH many kitchens are designed to take advantage of views so there is often little wall space available for upper cabinetry. The desire to create an open concept floor plan also eliminates the interior walls that were used to hold cabinetry. Connie said homeowners today want lots of convenience options and functionality integrated into their kitchens. Extra deep and wider drawers for dishware and food, covered bread drawers, and spice rack drawers compensate for the lack of wall space and keep things handy but below eye level for unobstructed views. Even dishwashers are finding their way into the everyday drawer.

Out of necessity, the kitchen island becomes much more functional with lots of storage underneath. Some kitchens are designed to accommodate a front load washer/dryer hidden on the back side of an island further increasing functionality. The butler’s pantry is also making a resurgence in the more expensive homes providing additional space for storage and are often equipped with additional refrigeration, coffee stations, and wet bars.

There are a multitude of countertop choices available today, but one earth friendly green product available through Kitchen Encounters is called Eco stone. Somewhat similar in look to granite, this green product is made from recycled glass but unlike granite it is non-porous and does not require sealers. Another nice option Connie showed me was an antique or leather finish granite which has a beautiful, soft and warm look.

Connie echoed several articles that I had read on the internet saying that mixing cabinetry and countertop colors is becoming much more common. Mixing and matching colors and materials provides many more interesting design opportunities. It can create interesting contrasts in a space and can also add definition to different areas in the kitchen. Using different materials or colors can also solve marital disputes when the spouses can’t agree on one single choice!

While they don’t sell appliances, Connie did say that homeowners like to hide appliances behind cabinetry and that stainless is not as popular as it once was. A relatively new oil bronze finish on appliances provides a beautiful option to the usual white, black, or stainless choices.

Designing your new kitchen is undoubtedly one of the hardest parts of any new construction or renovation job. There are just so many choices and design options that it can be very confusing. An experienced kitchen designer like Connie can simplify the process by listening to what you want, incorporating that into the design, and then making it a collaborated effort throughout the entire project to ensure that your kitchen turns out just the way you dreamed it should be.

There were 1249 homes on the market as of October 1 in the towns in this Lakes Region of NH Market Report. That total has dropped slightly from 1291 last month and down from 1301 last October. Homes offered under $200,000 still make up about 26% of the inventory. Compared to last October, the average list price is actually up $75,500 and the median asking price increased $500 from the $299,500. The current inventory total represents a 22 month supply of homes on the market .

Residential Homes Available October 1, 2009

Report covers the towns of Alton, Barnstead, Belmont, Center Harbor, Gilford, Gilmanton, Laconia, Meredith, Moultonborough, New Hampton, Sanbornton, and Tilton. Compiled from the NNEREN MLS System.

Some humor and some wisdom…

Here are a few pretty amusing quotes about housing from some famous people:

“The fellow that owns his own house is always just coming out of the hardware store.” Kin Hubbard

“There ought to be a room in every house to swear in.” Mark Twain

“Ah, the patter of little feet around the house. There’s nothing like having a midget for a butler.” W.C. Fields

“The partitions of the house were so thin we could hear the women occupants of the adjoining rooms changing their minds.” Mark Twain

“I’m an excellent housekeeper. Every time I get a divorce, I keep the house.” Zsa Zsa Gabor

Phyllis Diller said: “If your house is really a mess and a stranger comes to the door greet him with ‘Who could have done this? We have no enemies.’”

No offense is taken by me with the great Will Rodgers’ observation: “In a real estate man’s eyes, the most expensive part of the city is where he has a house to sell.”

On a more serious, but meaningful note: “Have nothing in your house that you do not know to be useful, or believe to be beautiful.” William Morris

Sales for single family homes in the Lakes Region  of NH communities in this report were up slightly last month to 66 units compared to last August when there were 62 units sold. While the slight uptick in sales is encouraging, we are still significantly off the sales totals of the previous three years. There were 133 sales in August 2005, 103 in 2006, and 109 in 2007. It looks like it will take some time before we can back to those levels.

Half of the sales last month were below the $200,000 mark compared to just 34% below $200,000 last August. The average sales price, however, was up slightly compared to last August due to a couple million dollar plus sales in Gilford that bolstered the average. A nice 1941 vintage, 3 bedroom, 1876 square foot lake cottage with 130 feet of shorefront at 69 Broadview Terrace on Governors Island sold at $1.21 million. This home had stunning views of the lake and mountains beyond. Next door at 55 Broadview Terrace, an exceptional 11,684 square foot waterfront with 270 feet of frontage sold for a cool $6.5 million. It had 6 bedrooms, 8 baths, and featured all the high end amenities and custom features one would expect for that price tag. That sales price ties the record for the highest priced home sold on Lake Winnipesaukee (the other sale for $6.5 million was at 16 Tranquility Lane in Alton in Dec. 2005).

One final quote, which is actually an old Russian Proverb, is something every homebuyer should heed: “Don’t buy the house, buy the neighborhood.”

Residential Homes Sold August 2009

Report covers the towns of Alton, Barnstead, Belmont, Center Harbor, Gilford, Gilmanton, Laconia, Meredith, Moultonborough, New Hampton, Sanbornton, and Tilton. Compiled from the NNEREN MLS System.
 

Wow! September is here. Where did the summer go? As of September 1 there were 1291 single family homes available in the towns listed in this edition of the Lakes Region Real Estate Market Report. That is up slightly from last month’s 1281 total but down a bit from last September when there were 1347 homes on the market. The median asking price came in just about the same as last year at $299,900. The current average asking price of $581,223 is up compared to last September when it came in at $522,865. Over the previous 12 months there were 673 sales in these communities for an average of just over 56 transactions per month. That translates to the same unwieldy 23 months worth of inventory that we posted last month.

As far as the condo market goes, currently there are  325 units for sale at an average asking price of $210,837. Over the past 12 months there were just 158 condo transactions completed at an average sales price of $185,713. Just to put these 158 condo sales in perspective, in 2004 there were 384 condo sold and in 2005 there were 315 units sold. The current inventory level translates to almost 25 months worth of units on the market. So the condo market is definitely struggling as well.

Land sales are even slower. As of September 2 there were 592 pieces of mother earth for sale in the Lakes Region which represents about 7.5 years worth of inventory!  The average asking price came in at $240,500 as there are quite a few high end view and waterfront lots on the market. In the past 12 months there were 73 transactions at an average sale price of $104,500.  The peak year this decade for total land sales was 2002 with 541 transactions and 2007 posted the highest average sales price at $167,500. People always ask how much an acre of land is going for. The answer varies tremendously and depends on the location, type of land, size of lot, whether there is a view or if it is waterfront parcel. In 2007 the average price per acre came in at $22,846 but ranged from as little as $1,000 per acre up to $1,474,359 per acre for a waterfront lot on Summit Ave in Laconia. Over the past 12 months the average sales price per acre came in at $12,170 but don’t expect any kind of great building lot for that kind of money. The highest price paid per acre over the past 12 months was $833,967 for a waterfront lot on Dockham Shore in Gilford. With land, just like houses, you generally get what you pay for…

Residential Homes Available Sept 1, 2009

Report covers the towns of Alton, Barnstead, Belmont, Center Harbor, Gilford, Gilmanton, Laconia, Meredith, Moultonborough, New Hampton, Sanbornton, and Tilton. Compiled from the NNEREN MLS System.

As the debate on the health care industry reform rages across the country, it made me think about the health of the housing industry. Everyone seems to agree that both industries are ailing and need a night or two in intensive care followed by a long convalescence. Several viruses have infected the housing industry affecting both buyers and sellers. Some of these conditions cannot be totally cured, but hopefully, with proper counseling and therapy the symptoms can be controlled so that the patient can lead a more normal life.

In the Lakes Region of NH our housing market, like that in the rest of the nation, has had a pandemic outbreak of acute Listatosis. This is a virally transmitted condition that is difficult to control, particularly if the patient is in an agitated or stressful state. This agitation is usually caused by several key stimuli: lack of money, loss or transfer of job, or divorce. Sudden death also contributes to Listatosis, but obviously the patient is no longer agitated in that case. This outbreak spreads further every time someone contacts a real estate practitioner to list property. No one is sure of the origin of this disease, but it appears to be most likely California or Florida. So how bad is the outbreak of Listatosis in the Lakes Region? A small amount of Listatosis in the marketplace is acceptable and a six month inventory flowing through the circulation system is considered normal. But our current elevated levels (approaching two years worth of inventory) is considered near fatal. How do you cure Listatosis? Usually time will help cure this condition and the swelling will go down by itself. An injection of liquid buyers would certainly reduce the symptoms and speed recovery. Abstinence also helps: i.e., refrain from listing your property unless you really have to and you can do so at the appropriate dosage of price. If you don’t listen to your real estate health professional, you might become susceptible to the tragic malady that has also exacerbated the condition of the housing market: OPL Syndrome.

OPL (commonly known as the Over Priced Listing Syndrome) has contributed significantly to the decline in the health of the housing market. It has affected perhaps 40-50% of our housing market in the Lakes Region. It has certainly contributed significantly to the prolongation and severity of Listatosis. OPL has long been considered to be caused primarily by environmental factors. Symptoms of OPL are often witnessed by real estate professionals who come in contact with home owners that want to list and sell their homes for well over what they are worth in current market. Underlying causes of OPL usually include elevated levels of debt and low levels of reality. Many times homeowners also can be delusional and transgress to the recent past when home prices soared like jungle fever. Unfortunately, that is not today’s reality. Recent medical studies have shown that OPL can also be hereditary in some instances. Every professional I know has reported at least one homeowner in the past year that suffers from OPL that has shown no sign of any environmental influence yet clings stubbornly to an unsupportable belief that the value of his home far exceeds that of every other home sold in the neighborhood. The subject may act distrustful and combative. Treatments for OPL include ongoing reality counseling and ensuring that the patient stops smoking whatever he was smoking. Large doses of Margaritas or other tropical drinks are optional.

One serious affliction that seems to only hit potential buyers is a new strain of highly contagious Yellow Fever. It has swept across the entire country. Unlike the tropical disease of the same name that is carried by mosquitoes, this version is viral and is spread by word of mouth. And unlike the tropical version this one is not fatal but it does sometimes cause a mental condition called analysis paralysis that makes the decision to buy a new home virtually impossible. Buyers have been frightened into the fetal position by months of bad economic news and then become hesitant to venture into the real estate market despite the widely held prognosis that now is one of the best times in history to buy a new home. Yellow Fever symptoms include cold sweats, shakes, and occasional vomiting. In some cases even the best qualified buyers become lethargic and lay low for weeks if not months. Government agencies have tried to treat these symptoms in a trial program for first time buyers by providing those afflicted with an 8,000 mlg of monetary stimulus designed to invigorate their moods. The WHOA (World Home Owners Association) has collected data quantifying that this program has been extremely successful in treating Yellow Fever in first time buyers. But more needs to be done to help the millions of other afflicted potential buyers. Please contact your representatives in Washington and urge them to continue funding treatments and educational programs for Yellow Fever.

Finally, I urge you to talk to your local real estate health professional about any symptoms or discomfort you may have. That is what we are here for. Trust me, we have seen it all time and again and have undoubtedly treated someone just like you recently with great success.