*Finally, after 3 1/2 years of market declines, on October 1, 2009 Steve declared "NOW IS THE TIME TO BUY". (Just make sure you will be able to survive future bumps in the road by having proper reserves and a 3-10 year market orientation.)
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SPRING SHOWED SOME ZING
BUT
SUMMER MAY BE A SLOW COMER
Is the Lake's Region real estate market in another stall or just a temporary crawl? Tough call, but for certain the buyers have possession of the ball. Anxious sellers remain in pain.
The spring market was tax credit driven at least, for the properties priced under $400,000. We are now witnessing the effects of an "Organic Market."
Inspite of our economic mess, the high end/luxury buyers appear to be slowly returning to the market. Having been on the sidelines for the past 2½ years, we are now seeing some sales in the $850,000 to $4,000,000 range. They must sort through an endless selection of properties. Attempting to simplify the process for these fortunate buyers I created www.buysmartnh.com which assist only the luxury/waterfront buyer both on the Seacoast and in the Lake's Region.
Lake Winnipesaukee alone, now has some 265 lakefront properties available, with only 40 sales since January 1, 2010. The lack of motivated sellers/distress sales has kept the asking prices at extremely high levels with the occasional sale typically involving the "less price sensitive buyer". The average waterfront sellers seem to have the ability to ride out this market (at least so far) hoping to catch this rare buyer.
IS THE U.S./GLOBAL ECONOMY HEADING FOR ANOTHER DIP?
Our elected officials seem bent on increasing the inefficient spending wave garnering their favorite special interests and our governments desire to gain greater control. Many experts fear that our economy is much too fragile for such reckless spending. The deficit continues to grow with no slowing in sight. Combined unemployment and underemployment figures exceed 17% of the workforce, yet our federal government still looks for ways to feed industrys' "Dinosaurs" instead of new and vital sectors with real potential for leading this economy back to prosperity. Just when you think things cannot get worse, oil prices seem to be moving up again. Higher energy prices can only further reduce consumer confidence and discretionary spending. Let's not dwell on such disheartening information!
BUT HOW DO THESE SIGNS OF RECOVERY IMPACT THE REAL ESTATE MARKET IN THE LAKES REGION?
Here in the Lakes Region, we have a predominance of 2nd homes and a serious lack of industry/jobs. With the exception of distressed/foreclosed properties our overall market remains extremely soft. The market for homes $350,000 and above also remains extremely soft.
With this said, OPPORTUNITIES ABOUND. Many prospective buyers have been focused strictly on foreclosure/bank owned properties. Since late fall we have seen a slight pick-up of prospective 2nd home buyers starting to scout the market for deals. Most seem to be in no hurry to purchase. At least they are looking!
At Curry, focus has been placed on counseling anyone who wants to know how this market is personally impacting them. We also have launched a new service that will provide specific information on all of the area's available bank-owned/foreclosure opportunities. The properties are priced to move. All offers seem to be taken seriously. We are also well versed on helping the vacation home buyer narrow their search to the aggressively priced offerings.
As I have previously mentioned month after month my advise to buyers is focus on "location", as well as price. It will be the properties that boast strong locations that will hold up well even if the overall market slips further. The current extensive selection can enable buyers to find specific properties that really match their personal criteria. The passing of time will eventually make their investment a sound one. In the meantime, they can enjoy living in a most desirable home.
Also, "serious sellers" will have to price their homes correctly. Unless you are selling a very unique and desirable property, any other strategy will most likely result in a frustrating and extended period of time on the market. As I have been indicating, month after month, sellers who are not willing to price more aggressively than the competition, will probably not be taken too seriously by the current pool of potential buyers. We have seen so many well intended sellers initially overprice only to follow the market downward with any corrective changes. In the end, they end up with less than they could have gotten if they had just priced it right from the start.
Currently the town of Alton has 158 active home listings, 4 of which currently have sales agreements and are awaiting closing. 9 homes sold in the month of June.
Price Range # of Homes Listed # of Pending Sales # of Closings
0 to <$200,000 24 2 2
$200,000 to $300,000 48 1 4
$300,000 to $400,000 19 1 2
$400,000 to $500,000 4 0 0
$500,000 to $1,000,000 40 0 0
$1,000,000 and up 23 0 1
FIRST-TIME HOMEBUYERS
This is your window of opportunity. Eventually mortgage rates will most likely be heading north along with treasury rates. Serious sellers abound. Do not wait for inevitable runaway inflation to price you out of home ownership. Purchasing a home will be your best hedge for building wealth! REMEMBER DO NOT BUY WITHOUT A BUYERS AGENT. IT COSTS YOU NOTHING!
TRADE UP OR DOWN
I think this is a good time considering the selection of available properties and very favorable mortgage rates. You'll need to take a hit on the selling side and make up for it by negotiating a good deal on the purchasing side. It should work out to being "a wash". Do not expect to sell high and buy low or you will miss this opportunity. You'll need to be very realistic.
WINNIPESAUKEE LAKEFRONT SELLERS EXPERIENCE EXTENDED MARKET PERIODS.
The Winnipesaukee lakefront market is somewhat atypical in that no matter how large the inventory becomes, most sellers have demonstrated "staying power" resisting "aggressive pricing."
Currently the inventory of available Winnipesaukee lakefront homes is 265 with just 4 under agreement. Never has the selection been so extensive. Also behind many of the optimistic asking prices exists a pool of sellers who are now willing to "bite the bullet" on the first bonafide offer that comes their way.
Price Range # of Homes Listed # of Pending Sales # of Closings (since1/1/10)
<$1,000,000 125 3 20
$1 Mil to $1.5 Mil 38 0 7
$1.5 Mil to $2 Mil 37 0 6
$2 Mil to $3 Mil 34 0 3
$3 Mil to $4 Mil 13 1 1
$4 Mil to $5 Mil 9 0 3
>$5,000,000 9 0 0
265 4 40
In addition, 36 Winnipesaukee lakefront lots are active with 0 pending and 5 sold since January 1, 2010.
If by chance you are ready to test the waters, please contact me. I created www.buysmartnh.com to provide a unique array of high-end buyer representation services.
Please feel free to share your thoughts with me anytime.
Steve Gray
Cell phone 603-387-2488