Lakes Region of NH Real Estate Market Report - 9/27/08

Scary times, better times coming

We have a good month and then a bad one. August residential home sales in the Lakes Region of NH were certainly not stellar. While we equaled last month's total of 62 sales posted we were 43% lower than last August's total of 109 sales. For the first eight months of the year we have had a total of 440 residential home sales compared to 564 sales in 2007 and 663 sales in 2006. That represents a 22% drop from last year's total thus far. The average sales price so far this year comes in at $358,711 compared to $396,367 last year for the same period or a 9% drop in the average sales price.

It is pretty clear that we are in troubled times. The uncertainty on Wall Street has had a major impact on just about everyone. When people are scared of losing their life savings it is pretty hard to think about buying a house or even a new car for that matter. It is pretty clear that we will not see home sales rebound until stability in the financial markets has been reestablished. And, it is certainly going to be much harder to get a mortgage moving forward. It should be. Buyers are actually going to have good credit, proof of income, and a down payment in order to buy a home. Imagine that!  Before, they just had to have a pulse. So while everything that is going on right now in the financial markets is pretty much beyond belief, things will turn around, and we should come out of this much stronger and better off for it. We will get back to the basics and that is a good thing. Remember when homes were meant to be lived in and were looked at as a sound, long term investment, not just a way to make a quick buck or a piggy bank to draw money from? 

A look at what is selling reveals that just about everything is moving but just in smaller numbers. There are entry level homes, bank owned, new construction, water access, million dollar waterfronts, and everyday residential homes selling in every price range.  Some deals that stood out last month include a circa 1774 cape and barn on 26 acres Griffin Road in Gilmanton.  This was a bank owned property that originally was offered at $274,500, was assessed for $235,111, and sold for $198,500. There was a water access, 3 bedroom, year round home with a dock on Brookhurst Lane in Meredith that was assessed for $321,100 which sold for $250,000. And there was a nicely updated, move-in ready, 2 bedroom ranch on North Barnstead Rd in Barnstead that was assessed for $211,100 that sold for $160,000. These properties represent examples of the great values in today's market and that is precisely why they sold. As with any down market, there are great OPPORTUNITIES out there for buyers who are fortunate enough to be able to take advantage of the times. If you have been thinking about a new home or investment property this could be the perfect time to start your search.

                                                        HOMES SOLD AUGUST 2008 

 For the towns of Alton, Barnstead, Belmont, Center Harbor, Gilford, Gilmanton, Laconia, Meredith, Moultonborough, New Hampton, Sanbornton, and Tilton.