In this area there definitely is. Usually it’s our first sign of spring when For Sale signs start popping up like dandelions in the lawn and our multiple listings change daily with new homes and land on the market. Historic data at the National Association of REALTORS® indicate that April through July sales outpace the rest of the year in sales. Buying stays steady through the summer and early fall. It usually drops off right after Labor Day for a couple of weeks and then picks up again in October through early November. Two of the more obvious factors for this “seasonal” market include the fact that school has ended and families prefer to move before the next school year starts as well as the weather is much nicer in the spring-summer to be out looking at properties. This is not to say that properties will not sell any other time of year. It just means that in this area there may be less buyers out there looking. With proper pricing and enhancing your home for maximum effect, a house will sell regardless of the month. Give me a call to get the Coldwell Banker advantage any time of year. Donna Forest, Broker Associate, 603-526-4116; www.donnaforest.com
I recently attended an event where one of the guest speakers was Lawrence Yun, the Chief Economist for the National Assoc. of Realtors. Below are some of the highlights.
- Home sales are the best they’ve been in 5 yrs. Nationwide sales are up 8%. As of September 2012, NH sales are up 19%.
- One reason for a slower recovery, aside from the credit bubble hangover, is that people are not moving as much right now. (Mobility rate fell from 18% to 12%).
- Investors are back in the market and they are buying.
- The housing forecast is that we may see a 5% increase in NH home prices next year.
- Housing market will be a multi-year recovery. Shrinking inventory will push prices higher.
- Nationwide, the median price of a home is up 11.4% from a year ago. In NH, the median price, as of September was down 2.4%.
High affordability, job creation, and rising rents will be pushing the housing market forward. There has NEVER been a better time to buy! Give me a call if you don’t want to miss out on your buying opportunity. Donna Forest, Broker Associate 603-526-4116; donna@donnaforest.com.
The old saying “a picture is worth a thousand words” definitely holds true in real estate marketing. With 90% of buyers starting their search online, it is imperative to have good photos and plenty of them in as many websites as possible. Listings with 3 or 4 photos, bad lighting or cluttered rooms will be skipped over by buyers. Sellers should be preparing their house before the agent arrives. This means extensive de-cluttering – removing items from countertops & on top of cabinets, clearing knick-knacks, removing everything from the refrigerator, getting rid of furniture if necessary, and neutralizing eye-popping colors. And of course, curb appeal is everything. Essentially the home should be staged for maximum effect. A competent agent will use a wide angle lens, ensure there is adequate lighting and take lots of pictures. Sellers should go online and view how their listing compares to other properties for sale. There should be 24 good photos in the Multiple Listing Service. If there aren’t, it may be time for a re-shoot! If you're interested in selling your home, give me a call at 603-526-4116 or email donna@donnaforest.com.
Yes and no. There are a lot of misleading emails that make you think every seller will have to pay an additional tax when they sell their house. Yes, there is a new federal 3.8% sales tax on real estate to pay for the Affordable Care Act. It was passed by Congress in 2010 with the intent of generating an estimated $210 billion to help fund health care and Medicare overhaul plans. The reality is, only a small percent will end up paying, starting in 2013. It applies to those with incomes over $200,000 ($250,000 if married, filing jointly). Even then, the tax doesn’t apply to the first $250,000 (or $500,000 if married, filing jointly) on PROFITS from the sale of a personal residence. This exclusion doesn’t work for vacation homes or rental properties. It’s possible that investment income could be generated by the sale of real estate. But it’s quite a stretch to call it a real estate tax.
Contact me and I’ll be glad to email you a PDF document from the National Association of REALTORS® explaining this tax. Please check with your accountant for the most accurate and up-to-date information.
In every real estate transaction, deposits are required to show the sincerity and strength of the buyer’s intent to purchase the property as well as to provide liquidated damages to the seller in case of default by the buyer. Sellers will sometimes eye these funds as potential money in their pockets and assume that the deposit will just be handed over to them if the buyer defaults. The reality of it is, that for the deposit to be turned over, the release has to be signed by both seller AND buyer. This release allows the real estate company to withdraw the money from the escrow account and distribute it appropriately. However, the chances of the buyer just signing over thousands of dollars without an argument are very slight. If both parties won’t agree to signing, most likely the process will end up in mediation or court. To avoid this situation, it is always best to find compromises that will help resolve any contractual disputes as amicably as possible. An experienced REALTOR® can be invaluable in helping the sale continue to move forward and avoid time-consuming and costly litigation. Give me a call if you're interested in buying or selling a home, 603-526-4116. I'd be happy to share my expertise. www.donnaforest.com
So far, it’s been a bumpy 6 years, as home prices correct themselves from the peak of 2005 (values saw double digit increases from 2000 to 2005). The median price declines we are now experiencing seem more painful because of this boom. -1.9% in 2006, -1.6% in 2007, -9.9% in 2008, -9.8% in 2009, +1.4% in 2010, -6.2% in 2011 The S&P/Case-Shiller Home Price Indices show that as of March 2012, average home prices across the U.S. are back to 2002/2003 levels. Where are we going? According to a March 2012 survey of economists, real estate experts and investment and market strategists conducted by Pulsenomics, home values are predicted to slowly rise starting 2013. -0.72% in 2012, +1.39% in 2013, +2.55% in 2014, +3.18% in 2015, +3.32% in 2016 What does all this mean? For sellers, realistic pricing is of utmost importance if you wish to sell. Price for today’s market; not what it was in 2005. For buyers, there may never be a better time to buy than this year. Call me if you want to work with a REALTOR® in the know! 603-526-4116
Donna Forest, Broker Associate
Excellent conditions, both in terms of weather and purchasing leverage, lifted first quarter residential home sales to its highest level since 2007, according to data released by the New Hampshire Association of Realtors. Low snowfall totals, combined with low prices, low interest rates and relatively high inventory, opened the door for 2,223 homes to be sold in the first three months of 2012, a 17 percent increase over the 1,903 sold through March 31 in 2011. Median price on those sales, meanwhile, dropped nearly five percent, from $197,500 in the first quarter of 2011 to $188,000 in the same period 2012. “This is about supply and demand, and it’s about home prices continuing to adjust to a market that has been favoring buyers for several years now,” said NHAR President John Rice, a 40‐year veteran of the real estate industry and an agent with Tate & Foss Sotheby’s International Realty in Rye. New Hampshire residential sales for March‐only were also ahead of last year’s pace by 17 percent, from 769 in 2011 to 896 in 2012. Median price in March 2011 compared to March 2012 declined 3 percent, from $195,000 to $188,750. In terms of local markets, each of the state’s 10 counties saw unit sales increases in the first quarter compared to the same period a year ago, including a 65 percent gain in Sullivan County, 42 percent in Coos County, 31 percent in Cheshire County, and 18 percent in the state’s largest, Hillsborough County. Only Merrimack and Coos counties showed first quarter median price increases. March 2012 data residentialMarch 2012 data condo-1 Rice said he believes the surge in sales is likely to mean the beginning of the end of dropping prices. “That’s just fundamental, free market principles,” he said. “More sales equals less inventory, which eventually equals higher prices. “In future years we’ll look back and be able to pinpoint when prices stabilized. We can’t know that point while we’re going through it, but if this pace keeps up, I can’t imagine we’re too far from it right now.” Source: Press Release, New Hampshire Association of REALTORS®, Dave Cummings, Director of Communications
Historically, our spring is heralded by the arrival of buyers, starting to look for their new home so they can be settled in before school starts again or if a vacation home buyer, be able to enjoy the summer season. This spring is different. Why? Due to the mild winter, buyers have already been out buying for months. And the homes that are selling are the ones that have a compelling price to attract buyers. Smart investors are snapping up the bargains. Overpriced inventory doesn’t stand a chance. Indicators are that home sales will increase in 2012. This does not mean that home prices will increase as well. Supply still exceeds demand. The Home Price Expectation Survey asked 104 leading industry experts where they thought prices would be at the end of 2012. These experts believe prices will depreciate by about 1%. Bottom line, if you are a buyer or a seller, it won’t pay to wait. If you are looking for an expert to guide you thru the buying or selling process, then give me a call! 603-526-4116; donna@donnaforest.com; www.donnaforest.com
Think losing the mortgage interest deduction would be no big deal? We bust seven myths to show why the cost is bigger than you think.
- The mortgage interest deduction helps mostly middle- and lower-income families.
- 65% of families who use it earn less than $100,000 per year.
- 91% earn less than $200,000 per year (that’s where most economists draw the line between rich and middle-class).
- Only 9% earn more than $200,000 per year.
- Raise property taxes. Not only will home owners pay more in taxes, renters won’t escape unscathed either as landlords raise rents to cover their costs.
- Cut services that everyone—renters and owners—enjoys.
- The $10,000 deduction you have now saves you $2,500 on your taxes (25% x 10,000).
- The 12% credit would save you only $1,200 (12% x 10,000) on your taxes.
- In this scenario, if the mortgage interest deduction is changed to a 12% credit, you’d lose $1,300 (the current $2,500 savings minus the $1,200 you’ll save under the 12% plan).
- $26,685—a 15% drop in value for the median home valued at $177,900.
- A proportionally smaller gain in overall home equity over your lifetime, because your home now starts from a lower value.