Maybe Lombardi Could Help...

Yes, we can?

I think I can safely say "I have seen the bottom of the market and this is what it looks like". We had a mere 28 residential sales in the month of January 2009 for the towns in our Lakes Region of NH list. That is down from 34 last January and 57 in 2007. The good thing, I guess, is that sales can't go much lower so surely we have only one way to go and that is up. Most agents I have spoken with lately are seeing increased activity which hopefully translates into more contracts in the coming months.
 
The new economic stimulus package that was just passed has an $8,000 tax credit for a first time home buyer which, unlike the $7,500 tax credit last year, does not have to be paid back as long as the home in kept for three years. This credit is available to taxpayers who purchase a primary residence between Jan.1 and Dec. 1, 2009. There are income limits to qualify: you can't make more than $75,000 if you are single or $150,000 for married couples. The Rural Housing Service also received additional funds for their direct and guaranteed loan programs which are used frequently for first time buyers here in NH.
 
President Obama has released details of a $275 billion Homeowner Affordability and Stability Plan to help homeowners struggling to stay out of foreclosure as well as expanding the role of Fannie Mae and Freddie Mac to stem the tide of increasing foreclosures. There are provisions in this program to help millions of responsible homeowners who can't refinance because of falling property values, as well as "at risk" homeowners who need interest rate reductions to get their payments down to manageable levels. Lenders can receive financial incentives from the Treasury matching the amounts they modify interest payments by and yearly incentives if their borrowers stay current on their loans. Homeowners in the program will also receive a $1,000/yr principal reduction for five years if they stay current on their loan. There are many guidelines and tests to qualify but it should help 7-8 million homeowners.   However, this plan will not help the majority of homeowners in the country that do pay their mortgages on time. It also won't help millions of homeowners that have loans that are not already backed or guaranteed by Freddie or Fannie or if they simply owe way more than their house is worth. Fannie and Freddie will also receive increased funding from the Treasury to ensure strength and stability in the mortgage markets, maintain mortgage affordability and to, theoretically at least, increase confidence in them.
 
That brings me to my point. Lack of confidence. We all sincerely hope that these stimulus packages actually work and that they stabilize the housing and economic markets. But the fact is we have an unprecedented confidence crisis in this country which is paralyzing the economy as much as any other factor.  We get a daily dose of mood altering "downers" by way of daily newscasts, articles, speeches, and doom and gloom predictions from analysts and politicians all the way up to our newly elected president. The Brits weren't this negative when London was being bombed on a daily basis in WWII. We need a stimulus package for our mood as much, if not more, than for the financial and housing markets. When people are beat down every day by relentless gloom and doom predictions they won't buy much of anything let alone new houses. I am not sure why the folks down in D.C. who have strapped this nation the biggest "mortgage" in the history of the world don't see that. Vince Lombardi said "Confidence is contagious. So is lack of confidence". A little more positive reinforcement from those in charge probably won't cure everything by itself, but it surely wouldn't hurt. What happened to "Yes we can"?

   Residential Homes Sold, January 2009

Data was compiled as of 2/16/09 using the Northern New England Real Estate MLS System. The days on market are current only & do not reflect the DOM for a previously listed property