LeRette Real Estate

Saturday, April 27, 2013

Where have all the houses gone?

Nope, not the name of a new country song but it could be.

Why is the inventory of existing homes on the market so far down compared to last year?

· The flood of foreclosures and short sales has all but disappeared, processing all the way through the market. There is not another wave of of foreclosures of any meaningful size that is on the horizon.

· New construction is just ramping up. There are fewer new home developments with a surplus of homes built and ready to go. Custom builders are seeing an increase in business because there are so few existing homes move-in ready.

· There are still quite a few owners that are upside down on their mortgages – their home value is less than what they owe the bank. Over the long run, prices need to go up to make these homes viable for sale. Unfortunately, it takes time for prices to rise and there aren’t enough sales happening right now to speed up the price increase. Back in the day, if a homeowner was upside down, they only had to wait a few months for the market to catch up to them. Not anymore.

So for now, even with interest rates at historical lows, we can still expect inventory to stay low. As prices inch up over time, we can expect to move towards a recovery with an increased inventory of existing homes.

PS – This is great news for those of you who are selling that are not upside down on your mortgage versus home value. You will sell quickly and be at or above the current market value.

Sandy LeRette – Realtor® ABR – Better Homes & Garden Real Estate / The Masiello Group – 436 Amherst Street, Nashua, NH 03063 cell: (603) 661-7301 email: slerette@masiello.com

Bob LeRette – Div. Sales Manager/ Real Estate – Boston.com & The Boston Globe, 617-929-2104 email: robert.lerette@boston.com & Realtor® - Better Homes & Garden Real Estate / The Masiello Group – 436 Amherst Street, Nashua, NH 03063

Saturday, April 20, 2013

Springtime Market

You have to love New England. The extremes of our weather can be crazy. But sandwiched between 2-foot snowstorms and sweltering humid days – is Springtime!

April and May are the biggest months in Real Estate. It’s our holiday selling season. Summer and Fall are pretty good too but Spring is by far the busiest. There is nothing like the optimism of warmer days and budding trees to put people in the mood for buying and selling houses.

The recent low inventories have created a sellers' market. And even as listings increase with the Spring market, it’s still low when compared to last year. Due to this, buyers can expect to compete against multiple offers on houses they are ready to pursue.

Before we all get excited about Real Estate prices going up, sellers cannot overprice their home just because of low competition. The house still needs to appraise for the value of the mortgage. Appraised value is based off condition and the recent sale prices of similar properties in the market. The key word there is “recent’ sale prices. Prices will inch up over time but we can’t expect a huge jump all at once.

Smart buyer will work with their agent to put in a fair offer at market value or just above. Low-ball offers are a waste of everyone’s time in this market. Sellers don’t have to worry that there won’t be another offer coming shortly.

If the market were a teeter-totter it would be almost flat and balanced. It’s a level playing field. If, as a buyer, you’re afraid of overpaying or, as a seller, afraid of not getting top dollar, now would be the perfect time to step into the Real Estate ring.

Sandy LeRette – Realtor® ABR – Better Homes & Garden Real Estate / The Masiello Group – 436 Amherst Street, Nashua, NH 03063 cell: (603) 661-7301 email: slerette@masiello.com

Thursday, March 14, 2013

Mortgage Rate Increased This Week

I just read that the US rate on a 30-year mortgage increased this week to its highest level in seven months. It rose to 3.63% from 3.52% last week. No need to panic it’s still near the historic low.

The low mortgage rate has been instrumental in the recovery of the Real estate industry. NH year over year housing sales are up over 10%. Massachusetts single-family home sales have been on the increase year-over-year for twenty-two months running. While sales are increasing, we are still well off where the market was in 2009. Mass is seeing small increases in median sale prices and NH is slightly down.

This means it may be a great time to sell or buy. Rates are low and inventory is low.

1. Educated buyers need to buy now before the rates go much higher (it will be very gradual).

2. With limited houses currently listed, houses should garner a good offer from buyers that have been watching the market.

Perhaps it’s the perfect storm.

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Sandy LeRette – Realtor® ABR – Better Homes & Garden Real Estate / The Masiello Group – 436 Amherst Street, Nashua, NH 03063 cell: (603) 661-7301 email: slerette@masiello.com

Saturday, March 9, 2013

It Just Snowed But I'm Thinking of a Pool

I will not hide the fact that I have always wanted an in-ground pool. I love everything about the idea of putting one in, except, of course, the cost. I can picture myself having coffee poolside in the morning sun, a swim after my yard work, grandchildren splashing in the water someday, sipping a cocktail on the decking as the sun goes down with the pool light reflecting off the house. (I suddenly realize I’m Clark Griswald from the National Lampoon Christmas Vacation movie dreaming of how I’ll spend my yearend bonus.)

I know it’s a lot of work to maintain a pool. I also know that my home insurance will go up, as will my water, electric and gas bill. I know that in New England we only get to use a pool for three months a year, hence the gas bill for the pool heater.

So even with the negatives, I can still visualize the lifestyle changes a pool would bring to my home life – a little Palm Springs right here in New Hampshire.

I was googling (hmm, spell check doesn’t like that word) pros and cons of pool ownership. I found an interesting thread on how a pool affects your home value. I know appraisers often add under $10K to the value of a home for a well-maintained pool in New England. This is far short of the $50K+ it takes to install your backyard oasis. Obviously, it’s an investment that you don’t expect to get a lot of return from when you sell your home. You do it strictly for the enjoyment.

I was shocked to read a comment on the thread from one RE agent adamant that a pool will negatively affect a home’s value. The agent brought up all the negatives, including taxes, liability, expense and maintenance costs. They went on to say that many people who buy a house with a pool incur the huge expense of filling it in. Due to that, some homebuyers will spend more on a home without a pool. Huh? Is this agent selling homes in Alaska? I bet this agent saw one poorly maintained home with a pool and it has stuck with them. What a buzz kill.

I know a pool isn’t for everyone but I don’t think anyone will ask for a price reduction due to a pool – unless it’s in horrible condition. If a pool doesn’t appeal to a homebuyer, I would expect that they would skip over your listing at best. So maybe it could reduce the pool (pun intended) of potential homebuyers but overall I can’t see listing a home for less with a pool than the same house without a pool.

I’m with you Clark! Don’t give up on the dream.

Sandy LeRette – Realtor® ABR – Better Homes & Garden Real Estate / The Masiello Group – 436 Amherst Street, Nashua, NH 03063 cell: (603) 661-7301 email: slerette@masiello.com

Saturday, March 2, 2013

Growth Continues in Winter Real Estate

We don’t ski much anymore, our kids are too old for sledding and no one wants to build a snow fort with us. Since December, I had been hoping for an early spring. It seemed like it would be a mild and uneventful winter. Wow, was I wrong!

At least the Real Estate market held strong. The nice thing is, in spite of all the snow and a depleted inventory, we’ve continued to enjoy early year closings. According to the Massachusetts Association of Realtors, January showed a 13.7% increase over last year for detached single-family homes. New Hampshire had an increase of 21.2.

Putting your home on the market now has many advantages.

· Low inventory mean less competition

· Less competition means more buyers looking at you property, possibly leading to a higher offer

· Buyers are in the market now and are not willing to wait for Spring, where many buyers feel home prices will increase

Our biggest challenge in wintertime is not getting enough buyers; it continues to be digging out in a timely manner for showings and open houses. After a snowstorm, the things I look at are:

· Where is someone going to slip and fall down?

· Any roof leaks from ice dams? Are there any dangerous icicles forming over entryways?

· With all the snow, is there enough parking for showings or an open house? If there isn’t, a potential homebuyer may just keep on driving to the next property.

· Is the driveway and walkway clear enough so that snow is not going to be tracked through the home?

· Will a scheduled Open House be postponed due to weather?

As a rule, Sandy tries to turn the heat up and turn on the lights for all of her showings. It’s amazing how many showing we bring a buyer to where it’s cold, damp and dark. You need to make it as inviting as your own home.

I've shoveled my share of walkways and driveways. I have bought and spread salt on driveways. I have left early for showings and froze my toes while waiting for the heat to kick in in a vacant house. I have slid to a stop at an intersection while on my way to show property. So, even though winter has been good for business, I’m still ready for Spring.

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Sandy LeRette – Realtor® ABR – Better Homes & Garden Real Estate / The Masiello Group – 436 Amherst Street, Nashua, NH 03063 cell: (603) 661-7301 email: slerette@masiello.com