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September 2, 2010

You’ve heard the news, “home sales drop by 25.5 % in July nationwide.” Well there is one little corner of the nation where home sales continue on their steady pace. According to the reports from the NNEREN M.L.S. the single family home sales pace in Windham NH in July of 2010 was exactly the same as it had been in July of 2009. There were 14 single family closed sales in both July of 2009 and 2010. Condominiums sales did slip with only 3 sales in July 2010 vs. 7 in July 2009.

Sales in August 2010 have been even better! There were 20 single family home closed sales in August of 2010 vs. only 16 in August of 2009. Condominium sales were slightly slower with 2 sold in August of 2010 vs. 3 sold in August of 2009.

There is a one part of the Windham market that is slower in July and August. The lower end of the market has been affected by the end of the tax credit and job uncertainty. Of the 34 single family sales in July and August of 2010, 27 sold at $300,000 or above. This represents 79% of the sales. Only 2 home sold between $200,000 and $300,000 during these two months (with 4 selling below $180,000) and there is a substantial of inventory of homes available for sale. However, for the year, closed sales of single family homes under $300,000 are up substancially with 32 closed sales in 2010 vs. 21 in 2009. 

For the year to date from January through August, Windham single family home sales are up sharply in 2010 vs. 2009. There were 126 single family closed home sales in Windham in 2010 which compares to only 85 sales in 2009. This is almost at 50% increase. In the condominium market there have been 26 closed sales in through August in 2010 vs. only 18 through August in 2009.

At the upper end of the market 3 homes sold between $800,000 and $900,000 in July and August of this year. There were no sales above $900,000.

Overall, the market in Windham has remained strong throughout the summer. Windham is a desirable community with newer, upscale homes in many neighborhoods and the town has just built as state of the art high school. It also remains one of the best commuting locations in southern New Hampshire with easy access to interstate 93 and the greater Boston area. Recreational opportunities abound with town amenities such as Griffin Park and the Windham Rail Trail. There is waterfront living on Canobie Lake and Cobbett’s Pond with easy access to Boston. All of these factors and more add to the appeal of Windham to potential home buyers.

This representation is based in whole or in part on data supplied by the Multiple Listing Service of the Granite State South Board of REALTORS, Inc. Neither the board or its M.L.S. guarantees or is in any way responsible for its accuracy. Data maintained by the Board or its M.L.S. may not reflect all activity in the market. Sales of Windham Homes and Condominiums from 01-01-2010 to 06-30-2010

If you want to borrow money to buy or refinance a house in southern New Hampshire, this is an incredible opportunity. Freddie Mac is reporting fresh new lows for average mortgage rates.

As reported in “MarketWatch:” “Low rates are helping to heal many battered local housing markets by increasing home-purchase activity,” said Frank Nothaft, vice president and chief economist at Freddie Mac, in a news release.

Five-year Treasury-indexed hybrid adjustable-rate mortgages averaged 3.56% this week, down from 3.63% last week and 4.75% a year ago. The ARM is at its lowest since Freddie Mac began tracking it in 2005.

And 1-year Treasury-indexed ARM averaged 3.53% this week, down from 3.55% last week and 4.72% a year ago.

To obtain the rates, the 30-year fixed-rate mortgage and both of the ARMs required payment of an average 0.7 point. The 15-year fixed-rate mortgage required an average 0.6 point. A point is 1% of the mortgage amount, charged as prepaid interest.”

Windham is known for its upscale image with many prestigeous homes and neighborhoods located within the town. What is less well know is there are some excellent opportunities for you to own a really nice home in Windham at a very affordable price. So don’t rule Windham out just because you are looking in the lower end of the market. All of the amenities Windham has to offer including a new state of the are high school, open space and recreational opportunities come with being a resident of the town. Here are two examples of excellent values in our listing inventory.

Windham $264,900

This really great home has been completely renovated. There is a dramatic custom kitchen with burlwood contemporary cabinetry and stainless steel appliances. There are wood laminate floors in the spacious great-room with a new propane fireplace with handsome surround. There are two bedrooms on the second floor plus a third floor loft that would make a great kids room. All new baths. Set on 1.14 acres. This is a great condo alternative! All you have to do is move in.

Windham $269,900

The second affordable, new, Windham listing is located on a 2.75 acre lot in a quiet area. This distinctive colonial home has three very spacious bedroom and 2.5 baths. There is a beautiful kitchen that opens to the familyroom with a fireplace. There is also a formal diningroom for those holiday and special occasions and a big livingroom. One of the nicest features is the sunroom with it’s cathedral ceilings, skylights and window walls overlooking the wooded yard. This great home can be yours for the very affordable price of just $269,900.

So if you’re looking for an affordable home, don’t rule Windham NH out. Contact us so we can tell you about everything that is on the market.

Peter Francese, an economist with the New Hampshire Association of REALTORS says in his recent press release regarding the New Hampshire Real Estate market that, “Homes sales and prices are rising here contrary to the nation yet again.” 

As I reported recently, home and condominium sales were up over 75% in Windham NH in the first half of 2010 vs, the first half of 2009 with many sales in the upper end of the market. This trend appears to be statewide. Francese states, “You wouldn’t know it from reading the gloomy national real estate news, but both home sales and median sale prices are increasing in nearly every New Hampshire county. Statewide, residential home sales rose 10 percent over June 2009 and median price in June was up 2 percent over last year. Condominium prices rose 6 percent, but sold listings jumped 14 percent over June 2009.

It must be increasingly difficult to deal with potential home buyers and sellers who only look at national news. But perhaps the most troublesome thing is how risk-averse mortgage lenders can become after seeing scary but misleading headlines. It’s an uphill battle fighting negative perceptions with mere facts, but here are some anyway.

The central fact: in so many ways, our state is not like the rest of the nation.

During the first six months of this year, statewide residential home sales reached almost 5,300 units, up 18 percent from the first half of last year, and the over 1,400 condos sales in the first half were 28 percent above last year. First half median residential and condominium prices rose 4 percent and 3 percent, respectively, over same period last year…”

Francese says many unique factors with population demographics in New Hampshire may be contributing to the sales surge. He goes on to detail all of the interesting things that make NH unique at this time.

We will see in the future if New Hampshire continues with it’s unique real estate market.

July 12, 2010

Fixed rates for 30 year mortgages at 4.6+/-%. 15 year fixed mortgage rates near 4+/-%. You have to travel back more that half a century to find a bank that would offer you a mortgage at these rates. For most of the 1950’s the average rate for conventional mortgages was between 5 and 6 percent.

Taylor Street in Salem NH just prior to 1950

THE SARASOTA HERALD TRIBUNE, JULY 23, 1950: “4 percent mortgage financing is available from private lenders for V.A. loans.”

THE SARASOTA HERALD TRIBUNE, JUNE 22, 1966: “No Mortgage Shortage. ‘I see no reason for any shortage of mortgage money locally in the near future, although it is true that the cost will be higher. Today the average rate of mortgage loans in the United States is 6.09 per cent up from 5 3/4 per cent little more than a year ago.’ ”

THE SARASOTA HERALD TRIBUNE, MAY 8, 1981: MORTGAGE RATES HIT 16% “ Mortgage rate in Sarasota jumped to an all time high of 16% this week but it hasn’t stopped buyers from buying new homes…We went to 16 percent on negotiable mortgages and 16 3/4%per cent on fixed-rate mortgages Wednesday, said Scott Gettemy of First Presidential Savings and Loan Association…”

Noyes Terrace in Salem NH "Post War Building Boom."

In the summer of 2010, home-buyers have a once in a life time opportunity to lock in a low fixed rate. You may have missed the home buyer tax credit but you will more than make up what you “lost” with the interest savings on your payments over the life of your loan. Plus you will see the savings in your monthly payments not as a one time credit which is really a huge affordability advantage.

Now is the time to sit down with a mortgage representitive to see exactly how much home you can afford. The sales professionals at Prudential Dinsmore Associates, REALTORS would be gald to give you a few names so you can compare rates and terms.

The pictures are from Salem New Hampshire just prior to 1950 during the post war housing boom. They show Noyes Terrace and taylor Street in Salem.

The Windham real estate market in the first half of 2010 almost made me think I was having a flashback of the good old days, say in 2005. Over all, there were 112 homes and condominium sold in Windham during the first 6 months of 2010 compared to 63 sales in the same period of 2009. This is a jump of over 77.8% this year as compared to last year. The average sales price of homes and condominiums dropped 5.97% from $390,540 to $373,615 during the same period of comparison.

The upsurge in demand locally has been driven by the return of buyers in the all important $400,000 to $600,000 price range, where much of the Windham market inventory exists. Last year the market was all about first time buyers and the Windham market suffered as a result. What a difference a year can make! One of the most encouraging signs in this market segment has been the return of the relocation buyer which is an indication that large corporations have the confidence to start relocating employees.

In the first half of 2010, 91 single family homes sold in Windham, with 38 in the $400,000 to $600,000 price range. This segment represents over 40% of the market activity so far this year. Over 58 sales or over 60% of single family sales were in the $300,000 to $600,000 price range. If there is a weakness in the Windham market it is in the $700,000 plus range. Only one home, a waterfront property on Canobie Lake, sold for over $700,000 during the first half of 2010. This matched 2009 when there had been only one sale over $700,000 before June 30th. By the end of 2009, 6 homes over $700,000 had closed, many of which were waterfront properties on Cobbett’s Pond. In my past experience, the upper range sales usually are more prevalent in the last half of the year.

This compares to the first half of 2009 when 55 single family homes sold in Windham with 22 in the $400,000 and $600,000 price range. In 2009, 34 sales were in the $300,000 to $600,000 price range.

The Windham condominium market has also seen an upsurge in 2010. There were 21 condominium sales in the first 6 months of 2010 as compared to only 8 during the same period of 2009.

So how does all of this compare to the nostalgic days of 2005? Well in the first six months of 2005, 141 homes and condominiums sold in Windham. That was a decrease from 2004 when 163 homes and condominiums sold during the same period. The average selling price for homes and condominiums in 2005 was $420,822 which was a 6.7% increase over the $386,488 average sale price for the same period in 2004.

One thing missing so far this year in the Windham market were bank owned sales. There were very few homes sold in Windham that were bank owned. This may not be the case in the future. It was reported in the Eagle Tribune, that Cathy Stacey, the registrar of Deeds, has seen a surge of foreclosures, up 32% in Rockingham County, in the first half of 2010. Most of these will translate into bank owned inventory in the future.

So what is ahead for the Windham real estate market? Nationwide the National Association of REALTORS is reporting that pending home sales dropped 30% in May nationally and 31.6% in the northeast. Currently, there are 40 homes pending in Windham. What will happen to the market in Windham for the rest of 2010? No one can predict the future but the past six months show a housing market that is returning to normal. Being a real estate professional, I now have to give you the obligatory admonishment that now is the time to buy or sell a home. Rather than being self serving though, this just may be good advice for both buyers and sellers. If you are a buyer, sure you missed the government handout, I mean tax credit, but you may gain that back in better pricing as the surge of first time and trade-up buyers fade. You also have an opportunity to lock in an interest rate, in the unheard of 4% range, but don’t hesitate, because rates don’t always just go down. Once upon a time, not so long ago, 8% was considered a great mortgage rate because they had dropped from 17%. For sellers, the advice is always the same, pricing is the key, and you have to price your home like it has to be sold in 90 days or less. You never know what lies ahead for the economy, what competing property will come onto the market that will upstage your home or what will happen in the local real estate market.

This representation is based in whole or in part on data supplied by the Multiple Listing Service of the Granite State South Board of REALTORS, Inc. Neither the board or its M.L.S. guarantees or is in any way responsible for its accuracy. Data maintained by the Board or its M.L.S. may not reflect all activity in the market. Sales of Windham Homes and Condominiums from 01-01-2010 to 06-30-2010

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Visit houselogic.com for more articles like this.

Copyright 2010 NATIONAL ASSOCIATION OF REALTORS®

Buckland $389,900

If you haven’t taken the time to check out Spruce Pond Estates, you are missing one of the best opportunities to own a new home in southern New Hampshire. Where else can you find a new home in Windham NH starting at just $389,900?

The homes on Buckland Road have been a popular choice for buyers who have been priced out of Windham in the past. Currently there is one house available for a quick close or you can choose one of the other beautiful lots to build a home that exactly meets your needs. Don’t hesitate too long though because 10 homes have been sold or are pending in Spruce Pond Estates in 2010 and there has been one price increase.

The experienced builders at H&B Homes have been constructing homes in southern New Hampshire for over 30 years.  Past developements include, Braxton Woods, Nottingham, Carr Hill, Hadleigh Woods and others.

The Morrison starts at $464,900

The Morrison model which is currently offered at $464,900 has been a popular choice at Spruce Pond. Buyers are attracted to the spacious floorplan, the family room in the back of the house right off the kitchen and the three car garage.

H&B Homes team will work with you in building a home that specifically meets your needs. Homes with in-law apartment and first floor master bedrooms are available.

Of course, Spruce Pond Estates has easy access to Interstate 93 and the greater Boston area.

Overall the New Hampshire real estate market is showing signs of recovery as the new year begins. The numbers from the New Hampshire Association of REALTORS are reflecting what we are seeing in our own real estate business in southern New Hampshire. While the median sales price is up, that should not be misinterpreted by buyers or sellers that the sales prices of individual homes have had large price increases. Instead, what is happening is a shift in the type of home buyer in the southern New Hampshire real estate market. At this time last year, the real estate market was totally dominated by first time home buyers. This meant that the were a large number of low price home sales which naturally brought the median sales price down. This year, the market has returned to a more normal balance of home-buyers. There are a large number of buyers in the upper price ranges again, which were totally missing last year. We are seeing buyers in the $300,000 to $600,000 range which were non-existent in 2009. These include buyers that are again being relocated by their companies and people who are making a discretionary purchase to move up to a larger home.  We are also seeing a large increase in traffic and pending new homes sales in Spruce Pond Estates. The fact that these buyers are in the market again is a very positive sign for the real estate market in general in southern New Hampshire.

That being said, buyers need to know that there are still excellent values in the market. Home prices are well off their highs of 2004 and 2005. Sellers need to be aware that only competitively priced homes are selling and there is still a great deal of negotion required to put a sale together.  Appraisal issues are also affecting some sales. Some lenders are requiring comparable sales within a mile of the subject property that have sold within 3 months. This is a burden of proof that cannot be met in many places in southern New Hampshire where homes are on large lots and where good comparables are commonly found several miles from the subject property. Buyers should ask their lenders about their appraisal standards before making a committment or they may not be able to buy a home that is well worth what they have offered but which “doesn’t appraise” because of  underwriting requirements.

This is a portion of the the February 16, 2010, press release from the New Hampshire Association of REALTORS: “The positive momentum felt in the New Hampshire housing market during the second half of 2009 continued into January 2010, with the state’s residential home sales ahead of January 2009 by 16.5 percent.  This time, there is additional good news on the price side as well, as the median price of residential homes increased by 7.5 percent over the same period last year – the first month-over-month median price increase in 26 months and the largest such jump in 52 months.

According to data released this week by the New Hampshire Association of REALTORS® (NHAR), 529 single family homes sold in January 2010, a substantial gain from the 454 home sales in January 2009.  And the median price in that same period was $215,000 this year, compared to $200,000 of a year ago.

The last time home prices showed an increase for a single month over the same period from a year prior was November 2007, and the last time that increase was better than 7.5 percent was September 2005…”

Remember, there is still time to qualify for federal tax credits but you must act soon.

First-time home buyers dominated the U.S. real estate market in 2009, accounting for roughly half of all residential transactions, according to the National Associaition of REALTORS.

That trend is likely to continue well into the new year. That’s because interest rates are hovering near all-time lows, home-price affordability is near all-time highs and a third factor – Congress’ extension of the first-time homebuyer tax credit until April 30, 2010 – make conditions quite favorable for those considering homeownership for the first time.

Still, with the prospect of making one of the largest investments you’ll ever make in your life, you can easily become overwhelmed. Some of the questions you may be asking are: Will I be able to afford the home of my dreams? Do I have enough money for a down payment? Will I qualify for the tax credit? Will I make smart home buying decisions? If you go into the process prepared, your first purchase – like the current timing – can be just right.

Resources–Before starting out, educate yourself on the process. Attend a homebuyer seminar in your market, and check out the myriad real estate resources online. Among those helpful online resources is prudentialdinsmore.com, through which you can access thousands of property listings. Be sure to check out the “Buyer” tab where you can find valuable information about buying a home in southern New Hampshire. I-Central has a myriad of links to help answer all of your home buying questions. The “Southern NH Living” tab has detailed information and links about the towns of southern NH including detailed school information. Your real estate professional also is a great resource. Don’t hesitate to let him or her know that you are new to the process. Your real estate professional will expect you to have questions at each step, from house hunting to making an offer through closing. You should establish a business relationship with a competent real estate professional before you begin your home search. You can review Prudential Dinsmore Associates professional profiles here and then contact the agent that is the best fit for your needs. 

The costs involved in the purchase of a home can seem overwhelming to first-time homebuyers. There are mortgage costs, the down payment, and closing costs to think about.

Affordability–By looking at your income and debt ratio, your mortgage broker can help you calculate how much you can afford each month in mortgage payments. A sales professional can be a great source of information about which mortage professionals in southern New Hampshire have a strong track record for customer service.  But before determining your price range, you should also take into consideration other factors that will affect your monthly budget once you are a homeowner, such as property taxes, insurance, homeowner association dues, utilities and maintenance. And if your down payment is less than 20 percent of the cost of the home, you will be responsible for private mortgage insurance, more commonly referred to as PMI. There are also new rules for FHA mortgages that are based on your credit score which may require a larger down payment for these types of loans.

Mortgage payment–Fear of being rejected for a home loan is one of the main concerns for first-time homebuyers. To lessen the stress, you may want to get pre-approved for a loan before looking at prospective homes. This will not only help you feel more confident, it will also give you an advantage where there are multiple offers for a specific property. In addition, the fact that your loan has already been approved is of great value to the seller because it shortens the purchase process, and there is less of a chance that the buyer will back out of the sale. If you don’t have a specific mortgage lender in mind, ask your sales professional for a recommendation.

Down payment–The down payment amount varies depending on the value of the home you choose and your mortgage lender. Your real estate professional will be able to explain the different options available to you.

Tax credit–The first-time homebuyer tax credit, a key component of the American Recovery and Reinvestment Act of 2009, equates to as much as $8,000, or 10% of a principal residence’s purchase price, and is available to those who have not owned a principal residence in the past three years. You can use the tax credit to help purchase your home or help pay for its closing costs, or the credit can be used to remodel, refurnish and repair your property. See your tax advisor for details about the tax-credit program and how you may benefit. 

Making offers–Don’t feel pressured into making an offer on the first home you see. This is a common mistake of many first-time homebuyers. Make sure you view different homes to get a feel for the marketplace. When you decide on a home to make a bid on, work with your real estate professional to get all of your questions answered before making an offer. But don’t wait too long to make an offer. The longer you wait, the greater the chance other prospective buyers may place offers, making it harder for you to negotiate a good deal. This site allows you to search sold prices by town and street in southern New Hampshire.

Above all, remember there are no silly questions. Make sure you understand and are comfortable with every aspect of the transaction. Your real estate professional can be an invaluable asset in helping you make educated decisions so that your first home purchase is a rewarding experience.

Prudential Dinsmore Associates, REALTORS is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity