You might be wondering if the housing market will crash given the high demand, record prices, and bidding wars. The short answer is “there is no bubble.” It would be natural to assume the same thing is happening that led up to the economic crash in 2008. However, the influences are very different. Below are 3 reasons why you can still sleep at night.
- The limited supply of homes for sale is driving up prices. It is simple economics of supply & demand. Inventory has been declining for years yet buyer interest is increasing.
- Demand has risen as millennials, currently the largest generation in the US, are entering the housing market. Throw in historic low interest rates, the ability to work remotely, and rethinking of housing requirements due to COVID, and now the need exceeds supply.
- Poor lending practices was a big contributor to the housing implosion. If you could breathe you got a loan. Also homeowners used the equity in their homes like an ATM machine and ended up owing more than what their house was worth. As a result, foreclosures & short sales depreciated home values nationwide. Lending guidelines today are much stricter and refinancing over the last 3 years is 1/3 of what it was 3 years before the crash.
Here is a quote in late January from Laurie Goodman, director of Urban Institute’s Housing Finance Policy Center, “I’m feeling very optimistic about the health of the US housing market.” Whether buying or selling, contact me to take advantage of today’s great market!
Donna Forest ~ donna@donnaforest.com ~ 603-731-5151
In this market where multiple offers are common, buyers are pulling out all the stops to try and successfully compete. Some buyers are resorting to the use of an escalation clause. This works by offering the seller $1000 (for example) more than the highest bid the seller receives from other buyers. The clause may contain a cap to limit the buyer’s price exposure. Below are just some of the reasons why this is not a good idea.
- An accepted offer with an escalation clause may not be an enforceable contract since it does not contain definite terms. Potentially either buyer or seller could later change their mind and claim no legal contract was formed.
- If the escalation clause contains a cap, it basically tells the seller the top price this buyer is willing to pay. A smart seller could reject all offers and counter back to every buyer with a request for new offers not less than the cap.
- Escalation clauses create exposure for buyers since they don’t know what they will actually be paying for the property. Will they qualify? Will the house appraise?
- What if several offers come in with an escalation clause? Who wins the bid?
- If a legal escalation clause were to be written by an attorney, it would probably be a page long of legalese in order to protect the buyers. Not exactly enticing to a seller.
There are many ways to write a compelling offer without an escalation clause. Whether selling or buying, contact me if you want to effectively navigate this complex market. 603-731-5151; donna@donnaforest.com
Come visit this 5 acre piece of land, located in the nature lover's paradise of Newbury, New Hampshire. At first glance you'll see that there are 200 feet of valuable frontage on Route 103A, a highly popular roadway in the region that traces the edge of Lake Sunapee and connects the quaint recreational town of Newbury with the nearby cultural hub of New London. And since we're on the topic of location, let us ask, what more could you desire? If it is lakeside lounging or a boisterous round of boating that you seek, this land is 2 minutes from Newbury Harbor; if it be snowy ski slopes or a warm weather adventure course, it is 5 minutes from Mount Sunapee; and, last but not least, this parcel is a mere 12 minutes from New London Town Center, which boasts a hospital, supermarket, college, and a slew of shops, offices, eateries, and sights.
Let's return to this lot, which is a treasure in and of itself. Venture your way up the roughed-in driveway, and take your time exploring this swath of territory which could be yours to cultivate as you please. Ponder the possibilities. Marvel at the history contained in this piece of land, such as old stone walls, an mossy touch left behind by Lake Sunapee Region's farming ancestors. Let your boots wander their way up to the back of the lot - here you might glimpse a secret little snapshot of Mt. Sunapee. It plays a coy game of peek-a-boo as the seasons fade one into another, the leaves blooming dewy green and fading antique rust, then reposes still for a breath, daubed in its winter tapestry of dark pensive blues, sparkling whites, and booming grays.
Contact Listing Agent Emily Campbell today to set up a showing. 603-491-4024; emily@bhgmilestone.com.
January’s market report for NH just hit my inbox and there was no surprise it was highlighting the lack of homes for sale. This has pushed prices up 23% in January compared to the same month last year. Right now, homes are on the market for less than a month. I’m sure many buyers are wondering if it is a good time to buy or if they should just wait. You may think increasing values means homes are less affordable today. While there are many factors that go into affordability, it boils down to the fact it is not just about the price of the home but the overall cost in the long run. Historically low interest rates stretch your spending power and mean you can save significantly over the life of a loan. Additionally, many experts say it is more affordable to own a home than rent. The cost of renting has been relatively high compared to the cost of owning. Here is a startling statistic - the net worth of a homeowner is 40x greater than that of a renter. While the market is a bit challenging at the moment, the expectation is to see more houses hit the market this spring. Contact me if you’d like to know how to best position yourself to build wealth and become a homeowner this year.
Donna Forest, donna@donnaforest.com, 603-731-5151 (c), 603-526-4116 (o)
This excellent opportunity is back! One of very few 1-bedroom units at the highly sought-after Hilltop Place. Simplify your life with this comfortable single-level condo. This low-maintenance unit contains separate living and dining rooms, kitchen, bedroom, and one bath. Side sliders open to a sunny open field between units. Decent storage. Detached one car garage with opener and storage above. Enjoy the phenomenal location -- you're tucked in a cozy community, yet you're also a blink-and-you'll-miss-it drive away from New London Town Center, with grocery store, post office, and hospital. If you're feeling spry you could even walk into town; it's that close!
Listing Broker: Marilyn Kidder - marilyn@bhgmilestone.com - 6035264116
Offered at $133,000
Hilltop Fees: $715/month Buyer buy-in fee (6x the monthly fee): $4,290
Teamwork from the Team that works –Better Homes & Gardens Real Estate - The Milestone Team
Valentine’s Day is around the corner but buyers have been writing love letters long before Feb. 14th. It continues to be a competitive market for buyers as they vie with others to purchase the small number of homes for sale. To help sway sellers, buyers may write a letter to them explaining why they love their house, complete with photos. While the purpose is innocent, love letters can unintentionally lead to bias and housing discrimination. Offers accepted on any basis beyond price, terms, and merit might violate fair housing laws (and it doesn’t matter if there was no discriminatory intent). Letters can convey information resulting in implicit bias favoring one buyer over the other. For example: “The large backyard will be perfect for our 3 children.” “We look forward to being close to our church.” Letters can also backfire by unknowingly offending a seller based on some personal comment.
The Fair Housing Act prohibits the denial of housing based on race, color, religion, national origin, sex, familial status, and disability. The act was created so every American would have an equal opportunity to seek a place to live, without being afraid of discrimination. While love letters are not illegal, they could lead to legal issues. I do understand why letters are written, and that most sellers are very receptive to them; however, given the potential for problems, maybe it’s best to avoid letters all together. Buyers should focus on writing the best offer possible and sellers should review offers based on their terms and conditions.
donna@donnaforest.com - (603) 731 5151
...to live in New London! This log home is situated in a private neighborhood setting, a mile's walk from Elkins Beach on Pleasant Lake. Enjoy the peace of 4+ wooded acres, and at the same time the convenience of a few minutes' drive to New London Town Center. There's a first floor master bedroom, as well as 2 bedrooms on the second floor. Down in the walk-out basement, you'll find 2 finished bonus rooms and a workshop. Enjoy every season -- this log home has 3 woodstoves, a screened porch, a massive deck, and a generator. Don't wait too long! Call Anne Marie Appel today to see this charming house that could be yours!
Anne Marie Appel, Listing Agent
(603) 526-4116 (O) (603) 454-7019 (C)
annemarie@bhgmilestone.com www.mynhlife.com
If only we had a crystal ball last January to predict what the year would be like. There are so many words to describe 2020 – unprecedented, challenging, surreal. It’s the year we lived our lives online. But amazingly, the housing market gained strength after hitting pause in March & April and 2020 became a record-breaking year in residential sales. The demand for housing was driven by low mortgage rates, millennials reaching prime home-buying age, changes in housing needs, and the ability to work remotely.
Nationwide, the median selling price (through11/2020) was up 14.6% from 2019 to $310,800. In NH, the median selling price for 2020 was up 11.7% to $335,000. The average days on market was 47 days and homes basically sold for their list price. Despite the fact there had never been that many homes for sale at one time, the volume of sales was up 4.6% statewide. In New London, Newbury & Sunapee combined, sales were up from a total of 218 solds in 2019 to 238 homes sold in 2020 with a median selling price of $429,500 (compared to $378,750 in 2019). The housing market is expected to shine in 2021 and continue to have a positive impact on our economy. If you are wondering if now is a good time to buy or sell, feel free to contact me for a no pressure conversation on what the best plan of action is for you. Donna@DonnaForest.com; 603-526-4116 (O); 603-731-5151 (C).
Despite everything that happened this past year, most economists are predicting 2021 to continue to be a hot market with high demand and low inventory. Home sales and prices are expected to continue to rise. The 20-plus housing and economic experts participating in NAR’s annual Real Estate Forecast Summit predicted housing prices to increase 8% in 2021 and 5.5% in 2022. Danielle Hale, chief economist for realtor.com expects home sales to jump 7% with home prices up 5.7%. Mortgage rates are expected to remain low with a slight uptick in the 30-year fixed rate to 3.0%.
Svenja Gudell, chief economist for Zillow, stated “there are millions of millennials aging into their prime home buying years, and millions more Gen Zers behind them that all will want and need homes of their own, keeping demand at a boil for years to come.” Also, the ability to work remotely for many now means people can live where they want versus where their workplace is located. With a thriving real estate market in 2021, buyers should take advantage of the historically low interest rates. Sellers will continue to benefit from the high buyer demand. Whether buying or selling, contact me for more information on how this hot market impacts you. Donna@DonnaForest.com; 603-526-4116 (O); 603-731-5151 (C).
Check out this fabulous, tastefully renovated North Peak Condo. It's just minutes from Mount Sunapee, the State Park Beach in Newbury, and all the great outdoor activities in the Sunapee Kearsarge Region. Ready to go - move right in with no projects to tackle!
This charming condo features multi level living, with 3 bedrooms, 2 gorgeous tiled baths, maple floors, new appliances, and a very private wrap around deck to enjoy the outdoors.
Cool down with air conditioning on sticky summer nights, and chase away the winter chill with a gas fireplace. Descending to the lower level, the newly carpeted recreation room provides many options. Right out the front door is a short walk to the community pool or nearby tennis courts. Enjoy the convenience of trash removal and on-site mail delivery, as well as the low Newbury taxes. What are you waiting for? Your Carefree NH Escape is calling you!
2B North Peak Village, Newbury $349,900
Anne Marie Appel, Listing Agent, 603-526-4116, mynhlife.com