August 07, 2009

Northern NH and VT Real Estate Market Watch and Real Estate Tid-Bits

Has the bottom hit? Are we at the bottom? We got an email the other day from a major newspaper looking for an answer to just that question – it is the question of the year, and one that we are trying to answer. Positive indicators are in the news, according to Bloomberg.com “Home prices posted their first monthly gain in three years in May, a gauge of values in 20 major U.S. cities showed, reinforcing signs of stabilization in a market hammered by the worst slump since the 1930s. The S&P/Case-Shiller home-price index rose 0.5 percent from April, the first monthly gain since July 2006 and biggest since May of that year…”

We are seeing more and more buyers come into the marketplace. Some are local folks who are looking to move up to a larger home, some are downsizing to accommodate their empty nest, and some are buying for the first time.

Brokers who are part of our affiliate organization, “Leading Real Estate Companies of the World” have been saying they were very busy, “busier than they have been in years” one reported. Are we all feeling the same energy I wondered? I pulled some stats from the Northern New England Real Estate Network, this is the twin state, Multiple Listing Service (MLS). One of the charts below shows the amount of inventory coming on the market. You will note that the inventory is starting to decrease since the beginning of summer, and the sales held at 37 for the month of July, which was the same as June. You will also note that the average selling price has decreased over the last few months, however, it is up from a low in March. So all in all, if inventory continues to shrink, and sales stay steady, we should begin to stabilize to a more expected pattern. Overall though, we believe this will be the year when people say, “I wish I had bought in 2009, the choices were many, the interest rates were low, and the prices low.” Don’t look back on 2009 as the year you should have bought a home. Let us help you now to realize your dream.

First Time Home Buyers: Time is running out to claim your $8000.00 Tax Credit!!!

We’ve been saying it for months, but this is a great time to buy, especially for First Time Home Buyers. The Federal First Time Home Buyer Tax Credit of $8,000 is going to end on November 30th, and to qualify for the tax credit, you have to have your home closed by that date. Since it generally takes 45-60 days for a property to close, you need to start now. If you have a foreclosed or short sale property in your sites, the 45-60 days of closing can take even longer, so act now.

Tax Bill too high?

With the current real estate market in the state it’s at, and some property values decreasing from their peak, some local residents have gotten their tax bills, and have felt that their town is taxing them too much based on the current market value of their property compared to what they are assessed at. Before you go too far, you need to know what the

NH Town Equalization (or VT Town Equalization ) rate is, and apply that rate to your assessment to come up with the value the Town is taxing you on. Equalization rates over 100% account for a decline in value. For instance, if your property has an assessment of $150,000.00, and the equalization ratio is 120%, the town feels your property current value is $125,000.00. If this is still more than you feel the current market value, you can ask for a Tax Abatement from the town. To begin the tax abatement process, the property owner has to have received their final tax bill of the year and the application must be filed with their town by March 1st. The burden of proof falls on the taxpayer. If your abatement application is based on a disproportionate assessment, you have to show why. For this, you have to have the market value, and an equalized assessment rate. We are happy to help you with the abatement process, we can help compile the data for you, and help with your application. Feel free to call one of our agents, we offer this service at a reasonable flat rate fee.

Relocation Department: The Power of the Network is available to you for Free!

Just recently I saw a bumper sticker that said, “Think Globally, Act Locally”. While this is a great sticker discussing the environment, in this case it can come in handy for our clients who are relocating. Whether you are relocating to a warmer winter destination, or halfway around the globe, we can help identify, and interview real estate firms to help you find just the right match to assist you with your house hunting, or rental process. This is a service we offer, at no cost to you. We enjoy taking care of your real estate needs here in this area, and are pleased through our affiliates of “Leading Real Estate Companies of the World” to offer you similar services no matter where you end up.

Rental Department:

We offer a full service rental department in our offices handling long term rentals and we also handle short term rentals and vacation rentals. If you have a home or vacation property that you would be interested in renting out, please give our offices a call.

If you are looking to rent and have some specific needs, please feel to check out our rentals on our website, or call our offices for more information.

Need a Quick Closing? – Not so Fast!

Effective July 30th, new Federal regulations were enacted by the Fed called the Mortgage Disclosure Improvement Act. The intent is to better inform consumers of the fees and costs associated with acquiring a mortgage, and avoid surprises at the closing. The new regulations require lenders to provide borrowers the Truth in Lending Disclosures at least 7 business days prior to closing. If anything changes in fees or the rate after you receive the TILD, the clock starts all over again. So plan ahead, and ask your Banker on the first meeting when they will be providing this critical form to you.

Posted by:Andrew Smith