"Prices are rising but closing a sale is harder" in other words closings are still down even when compared to last year which was by no means a great year. Closings may be down but maybe that has something to do with the fact that buyers are encountering competition from other buyers. Competition means someone loses and I can tell you that in a multiple offer situation there is always someone who loses. Multiple offers are happening in our area and happening often. Homes need to be in excellent condition and priced very aggressively to see multiple offers and when that happens the seller wins.

It's an interesting market we are in and I think this down turn has hit every one harder than the last one but we're on the turn...a very slow turn, one that might take a few years to make but slowly we're turning. If you are a buyer don't sit on the fence too long as interest rates are rising and NH just might be quicker to recover than other states.

The New Hampshire Association of REALTORS Market Trends report was just published and reprinted below with permission. As always it's interesting reading.

New Hampshire stands out again
-by Peter Francese

The Federal Reserve Bank of Boston is perhaps the most valuable provider of indicators of how our state is doing compared to our neighbors and the nation. It may surprise you to learn just how well New Hampshire does in this comparison.

If any state is going to recover in a timely fashion, it's going to be New Hampshire.

REALTORS® might want to share the three charts below with anyone who doubts that our state is in much better shape to recover from the economic funk so frequently reported in the news. But at least one publication is not following the bad news pack. Barron's cover story for their July 14 issue was titled, "Home prices are about to bottom."

That story can be accessed by clicking here. The article doesn't mention our state, but it may have a positive effect anyway on people from other places who were thinking about buying a home here. One of the more interesting parts of the article was how uninterested the major media were in any positive real estate news. I guess gloom and doom stories sell better.
Chart I below shows the growth in number of people with jobs from May of last year to May of this year. New Hampshire's growth at 1.6 percent is way above any other state in this region as well as being far better than the barely positive US figure of 0.2 percent. Chart II shows that our unemployment rate at 4 percent is the lowest in the region and well below the national 5.5 percent rate.
Finally, Chart III shows the Federal Reserve Bank of Philadelphia's index (as reported by the Boston Bank) of economic activity for each of the New England states and the nation. At nearly 200, the index for New Hampshire is far and away the region's highest and is also 24 percent above the national index.

Source for Charts I, II and III: Federal Reserve Bank of Boston

If any state is going to recover in a timely fashion from this recession and reverse the decline in home sales, it's going to be New Hampshire. From a pricing point of view, the recovery may already be in progress. Median home price for residences statewide have risen steadily for the past four months and are now 11 percent above what they were in February.
For the first half of this year, the statewide median home price is still 8 percent below the first half of last year. That's way below the national drop, and at our current rate of climb, prices here should be in positive territory by the end of the year.
Nevertheless, only 1,127 residential properties and 281 condominiums were sold statewide in June and those sales were respectively 20 percent and 38 percent below the sales for June of last year. So prices may be slowly rising, but closing a sale is harder. The home next door to ours, for example, just sold after nearly three years on the market, to the great relief of everyone involved. Perhaps it's a harbinger of better future buyer activity.

NH residential (non-condominium) sales

Source: Northern New England Real Estate Network (NNEREN). Statistics are based on information from NNEREN for the respective periods shown for the respective regions in the State of New Hampshire or all towns in the State of New Hampshire. All analysis and commentary related to the statistics is that of the New Hampshire Association of REALTORS® and not that of NNEREN.

There are some awesome buys out there! But what happens if you don’t have the money to make the necessary repairs? You’ve found your dream home…a diamond in the rough, at a great price but you don’t have the extra money needed?

I asked long time mortgage officer Steve Blier those very same questions and when he started to answer me I said how about writing a post for the New Hampshire Real Estate Blog instead? Rather than just educate me, I thought why not share it with all of you. Especially since so many of you are interested in buying NH bank owned (REO) properties.

So without further adieu…

“REHAB.” CONSTRUCTION LOANS for PURCHASE or REFI. (OWNER OCCUPIED) “101” by Steve Blier Sr. Mortgage Loan Officer GMACM

It’s nice to know in today’s ever changing world of the Mortgage Financing, where not only are the various banks changing, tightening up, or even dropping many consumer mortgage programs, that there’s still a program that will provide a buyer with the necessary cash to make the required or desired improvements on a property.

The best way to help explain this REHAB/CONSTRUCTION Program is to give you an example of how it works, then I can explain the way it works.

Purchase Sales Price is $200,000

The house needs a new roof, a new boiler, the previous home owners moved out in the middle of the winter, not notifying their lender. The oil runs out & water plumbing pipes freeze. This Property is 30 years old, and never had any updates, so a new bath and a half and new kitchen are badly needed.

The Total of all Required Repairs and Upgrades with a General Contractors estimate to take care of the above items is as follows:

New Roof $8,000, New Boiler and Repair/Replace misc. plumbing $12,000

Remodel 1.5 Baths and New Kitchen $25,500

10% reserves for costs over-runs/upgrades/changes $4,500

The total REHAB FUNDS Requested is $50,000

This Amount is then added to the Sale Price of $200,000, for a Combined Acquisition Cost of $250,000

The Buyer is required to put at least 10 % down = $25,000 and would need to finance a min. of 90% LTV (Loan To Value) for the “AS IF” Completed Value, with these Repairs & Upgrades imagined to have already been done.

The Buyer/Borrower can either choose to do a First Mortgage @ $225,000 and have a small (tax deductible PMI monthly payment of approx $100. per month until such time they have 20% min. equity, or they may opt. to do a First Mortgage @ 80% LTV @ $200,000 and do a small second of $25,000 (at a slightly higher rate…with no prepayment penalty) and have NO monthly PMI.

Now for all of this to work…and I must say it works Great for the Right Buyer and Property…..the Appraisal needs to come in for at least the $250,000

The Buyer will close on the property for the $200, 000 sale price, the buyer has the construction contract to repair & rehab the home…GMAC MORTGAGE will Disburse up to 4-5 checks, one for each completed job task & inspection of the completed work preformed.

The Buyer is able improve the condition of home that they other wise might not have been able to afford, and are able to do it with only 10% of the total overall cost of the home. In this case they get double that amount back from the bank for the wonderful home improvements!!

Finally a Mortgage Program that seems to have the Buyers “Interest” in mind! Plus this Program ALSO works on REFINANCES…..for any further information or question about REHAB or other ”With The Buyer’s Interest in Mind” Programs…Please call me @ 603-930-5684….or my e-mail address Steven.Blier@gmacm.com Web Site www.gmacm.net/steven.blier

Helping you make that Diamond in the Rough a Home that you can truly be proud of……Best Always, Steve Blier GMAC MORTGAGE

Peter Francese once again brings us his great insight into the state of New Hampshire’s real estate market. One thing Peter says is  “ As to when we will see the bottom of the market, we are probably awfully close to it right now.”

We have to agree with him and while we don’t think we’re there yet…we’re pretty close. Certain market areas and certain price ranges are “hot” while others are getting pretty warm. Personally, we think it will be a while before we see prices increase but properties are moving, people are buying and buyers have many choices. The spring market is here…even with all the snow on the ground.

Reprinted with permission from the New Hampshire Association of REALTORS.

Where’s
the bottom?
-by Peter Francese

That’s the big question. Even the Chairman of the Federal Reserve Bank, who has access to databases we can only dream about, says he doesn’t know. Perhaps it’s vain of us mere mortals to even ask the question. But we’re going to, anyway.

There are several factors that will determine when housing demand will start to rise such that prices will firm and sales will happen more quickly. High on the list of them is consumer psychology. Right now consumers in general are not very optimistic about the future. But if the buying public thinks that 2009 will be a better year than this one, then demand for dwellings will likely rise.

The fact that this is a presidential election year, the major theme of which is “change,” suggests that there’s a better-than-even chance during this year that consumers will become more optimistic about the future. But regardless of the public’s mood, interest rates and the availability of credit will either get in the way of home sales or facilitate them. So far, interest rates are low enough to encourage more home sales, but lenders have become, for the most part, way too risk-averse.This is probably because mortgage lenders can’t pawn off those loans quite so easily anymore. What is likely to open up the credit markets and make mortgages easier to obtain is a positive move by Fannie Mae and Freddie Mac to increase liquidity, calm the mortgage-backed securities markets and get that system working again. Given the incredibly huge amounts of money involved, something like that is likely to happen soon.Here in New Hampshire, the housing market has always looked better than in other states because we avoided nearly all of the mortgage fraud, speculation and other excesses that created so many problems in the hyper-growth areas of the South and Southwest. But we have our own “issues” to contend with. And the most serious of them is the lack of growth. Chart I (below) shows how the flow of people to our state from other states has markedly slowed over the past seven years and is now negative.Population growth is one of our key drivers of housing demand. Fortunately for us, it’s not the only driver, but lack of growth will have an impact if it doesn’t turn around soon. One reason for this slowing growth is the lack of affordable rental units for young adults.Communities don’t want them, in large part because of the irrational fear that they will increase school enrollment and thus drive up property taxes. For a bigger discussion of this issue, please look for our book, Communities & Consequences, in your nearest library or bookstore, watch for the film of the same name on New Hampshire Public Television, or visit the project website, http://www.communitiesandconsequences.org/.Chart II shows the average sales price for residential homes and condominiums for the past year and is about a flat a curve as anyone should expect to see, given current market conditions. But Chart III shows that it is taking significantly longer to sell a home in New Hampshire - an average of almost five months.

So the bottom line as to when we’ll see the bottom of this market is that we are probably awfully close to it right now, at least in terms of price. But coming off of that bottom and seeing a more robust market for home sales may take some months. The consumer needs to get in a better mood, towns in our state need to feel more positive about workforce housing, and mortgage lenders have to feel better about making new home loans.

Sure there are risks that none of those things will happen. But our state is in the best economic position of any state in this region to benefit from improving conditions. In any event, we will enjoy a better future when we are willing to be more welcoming toward young people by providing them with affordable places to live.

Source: U.S. Census Bureau

Source: Northern New England Real Estate Network

Source: Northern New England Real Estate Network

Source: Northern New England Real Estate Network (NNEREN). Statistics are based on information from NNEREN for the respective periods shown for the respective regions in the State of New Hampshire or all towns in the State of New Hampshire. All analysis and commentary related to the statistics is that of the New Hampshire Association of REALTORS® and not that of NNEREN.

This month Peter Francese tackles the foreclosure issue in New Hampshire. His reports are often hard hitting and this is no exception. We've had a busy real estate week and actually have shown a few foreclosed properties, so foreclosures are definitely increasing in our Southern NH marketplace.

While the prices of these houses are great the condition is something else. People when they lose their homes or are about to lose them will stop putting money into it. Sometimes the neglect is obvious, other times it is not. This brings to mind the house that had fine sand dumped down the toilet and the drains...not something anyone could "see" and something that caused a lot of damage. One house in Hampstead that we showed even had the sink torn out, parts of the heating system removed, lighting just pulled from the ceilings with no thought given to the damage incurred. The place basically was trashed. Once it was a beautiful home...I remember it well. The people who lost it...lived in it less than a year...the people before them for years.
The hate and despair was evident through-out the house, which once was someone's castle.

As we usually do we publish the report in it's entirety with permission from the New Hampshire Association of REALTORS.

Fearful Times Call For Fresh Thinking
-by Peter Francese
The national headlines could hardly be scarier: “Credit crunch!” “Widespread foreclosures!” “Plunging home values!” It’s enough to make even the most cool-headed REALTOR® a trifle anxious. And then the word “recession” is thrown around just to frighten us some more.

The best antidote to the fear-mongering we see around us is real and more detailed market knowledge — we need a lot more of that.

The next time you hear those phrases, please keep this in mind: It’s always the most frightening leads that get the biggest TV and print audiences – something national media firms need to survive in their hyper-competitive industry.
We know that New Hampshire real estate and economic conditions are much better than other parts of the nation, but that reassuring story has trouble competing with those that forecast imminent doom. To be fair, we certainly have economic issues to be concerned about, but succumbing to fear won’t help us solve them.

In sharp contrast to the above, on Dec. 10 the New Hampshire Housing Finance Authority quietly published an excellent report on the extent of subprime mortgages and foreclosures in New Hampshire. No hype, just the facts. I recommend it to every reader of this column. It’s titled: "Mortgage Delinquency, Foreclosures, and Subprime Lending in New Hampshire. How Big is the Problem?" It’s free and available by clicking here.
The report’s conclusion is simply this: “For those individual households the [foreclosure] process is traumatic and the economic loss is real, but their numbers are not so large as to pose a direct threat to the overall New Hampshire economy. At present more than 95 percent of New Hampshire mortgagees are current in their payments and almost 30 percent of owner occupied housing has no mortgage at all.”
The Housing Finance Authority report, however makes the disturbing forecast that, “adding more properties to the inventory on the market will continue the downward pressure on prices.” It reports that from the peak in 2006, median home prices declined only 2.5 percent by mid-2007. But then they show a chart indicating that median prices may drop as much as another 5 percent before this correction has run its course.
The only problem with that chart is that REALTORS® don’t sell medians, they sell homes, often unique homes at a wide variety of price points. New Hampshire’s economy and demography have changed radically from the time of the last housing downturn in the early 1990s. That has meant a greater variety in the types of home buyers, many of whom have no need of a subprime or any other type of mortgage.
Each month, this column provides a small table showing the latest NNEREN data on average home prices and number of sales by county. Beginning this month, we will also show median prices. Medians are preferred because occasionally averages can be distorted by a few extremely high prices while medians are less subject to that.
Whatever statistics are shown, however, there is no doubt that the real estate market in New Hampshire over the next few years will be more complex and less predictable that at any time in the past. This will create the need for tracking very detailed information about every segment of home buyers — salaried workers, self-employed workers, retirees, about-to-be retired Baby Boomers, second-home owners, and/or real estate investors.
Each market segment has different housing needs or wants, may have different financial resources, and are likely to expect a different level of service from their respective REALTORS®. The slowdown in the pace of home sales creates the mandate to get a deeper understanding of this complex and changing residential real estate market.
The best antidote to the fear mongering we see around us is real and more detailed market knowledge — we need a lot more of that.
Speaking of market knowledge, NNEREN now provides median price of sold homes as well as the average. Both are shown below for the first 11 months of 2007. It shows that the number of homes sales, not including condominiums, are an average of 10 percent below 2006 for the state and have declined in every county. Rockingham County has done the best: Home sales there are only 1 percent below last year.
Both the median and average sale price of homes have edged down statewide, but not in all counties. Belknap, Grafton and Sullivan sale prices are above the same period for last year on both measures, while Cheshire and Carroll average home prices went down but median home prices went up, indicating price declines only on the most expensive properties. The opposite was the case in Coos County where the median and average home price went in opposite directions, suggesting more price pressure on the less expensive homes.
The statewide difference between the median and average home sale price is about $44,000, but that varies between a high of $128,000 in Belknap County and a low of only $20,000 in Strafford County. This suggests that sales of very expensive properties are a bigger share in Belknap, where the top sale was $3.5 million, versus Strafford, where the most expensive property in 2007 sold for just $1.4 million.

January-November 2007 NH residential (non-condominium) sales

Source: Northern New England Real Estate Network (NNEREN). Statistics are based on information from NNEREN for the respective periods shown for the respective regions in the State of New Hampshire or all towns in the State of New Hampshire. All analysis and commentary related to the statistics is that of the New Hampshire Association of REALTORS® and not that of NNEREN.

Holidays in Chester New Hampshire...a very special time of year. 

Three Non-Profit organizations in Chester have pulled together to once again bring you a fun filled festive afternoon guaranteed to get you in the holiday mood.

The Holiday in the Village will take place Saturday December 1st.

Christmas in the Village begins at 9:00 am at the Congregational Baptist Church Vestry and will feature craft tables selling holiday decor, handbags, candles and much more.

A country store and bakeshop full of preserves and all sorts of yummy homemade treats and a special table called "Tiffany's at Chester" with lovely vintage and contemporary fine jewelery will also be available for you to enjoy.

I think I need to go check out Tiffany's at Chester!

Don't miss the ever popular Chester Senior Citizens Cookie Walk with all sorts of home made cookies at very reasonable prices.

Fill a tin and give them as special gifts, everyone loves home made goodies, so it is sure to be a big hit.

Chester is going all out in their holiday preparations!

There are lots of community events including a very neat Front Door contest...the contest begins this weekend so hurry and get your entry form and start decorating your door.

You never know who might be taking a picture of your doorway!

You have until the 15th to decorate and then the judging begins.

People can buy a map with directions to all the homes that have entered and then they get to cast a vote for their favorite three! I can't wait to see the results!

Chester New Hampshire is a true country delight and a great place to call home.

Jay and I have often said that if we ever move out of Hampstead...Chester is where we'd like to go.