We posted an article from DSNEWS that stated “Despite fewer foreclosure starts, distressed sales rose in 2013”. Based on our analysis of sales in all of 2012 and 2013, this has been true even in New Hampshire.
We reviewed the data reported in NNEREN MLS and determined an estimated* foreclosure (REO) amount for 2012 and 2013 in select areas, in addition to the entire state.
Cheshire County 2012: 10% REO
Cheshire County 2013: 18.5% REO
Sullivan County 2012: 15.6% REO
Sullivan County 2013: 20.3% REO
City of Keene 2012: 7.6% REO
City of Keene 2013: 10.3% REO
City of Claremont 2012: 22.3% REO
City of Claremont 2013: 27.6% REO
All of New Hampshire: 2012: 10.6% REO
All of New Hampshire 2013: 14.07% REO
Foreclosure sales increased 3.47% statewide, with some markets having a foreclosure sales rate higher than the state average. Real Estate is a local phenomenon and each market is different.
*The above data was gathered from NNEREN MLS and is estimated as not all listings are reported as a foreclosure in the MLS when they actually are, as each bank/servicer has their own guidelines on disclosing a property as a foreclosure.
Posted in Community, News, NH Real Estate Market, Real Estate News | Tagged bank owned, cheshire, Claremont, Data, Distressed Sales, foreclosure, Keene, lender owned, MLS, New Hampshire, News, NH, NNEREN, real estate, realtor, REO, Statewide, Sullivan, Thackston | Leave a Comment »
Posted in Mortgage News, Real Estate News | Tagged 2013, distressed real estate, distressed sale, foreclosure, Housing, housing recovery, Massachusetts, New Hampshire, real estate, Thackston, Vermont | Leave a Comment »
Statewide Trends: 2014 Projections
Posted by Gove Group on Monday, January 13th, 2014 at 11:31am.
By Daniel Hussey
Single Family Home Sales
Sales were up by 10% in 2013, continuing the upward trend in total sales over the past 3 years. We believe the market will continue to accelerate in 2014 and improve another 15% over the course of the year. If the last few months are an indication of what’s ahead, 2014 will be a big year. There is still a lot of pent up demand in the starter home market and for those looking to downsize. Analysts are already looking at what is happening and seeing a housing bubble form in specific A+ markets; however, tighter regulation in the home mortgage industry will hopefully reign in macro-level unrealistic appreciation and keep the markets safe. So far, so good.
Single Family Prices
Home prices continue to improve. During the downturn, the average home price fell largely because the number of sales priced below $200,000 made up a much larger percentage of all sales in the market. At the same time, home sales above $200,000 decreased. What we are seeing is that middle portion of the market, sales right around $200,000 to $300,000, increase and sales below $200,000 are drying up. This change in volume from one price segment to another is a long process and speaks volumes about incomes, jobs, an aging population, an aging stock of existing homes, costs of construction and many other factors including buyer’s perception. What we want to see is a return to normalcy followed by slow growth that mirrors income growth at all price points. This makes for a stable, easy-to-predict, investment atmosphere. While the changes in regulations in the housing industry have been arduous at times, they are aimed on the most basic level, to match incomes with home costs to avoid over extending consumers for their own good, or in other words, more secure and stable path towards the American Dream. This is playing out now and so far, in our markets, it’s working.
As new construction specialists, we are seeing an increasing demand for new homes for two main product types; starter homes and ranches or first floor masters. The existing stock of starter homes is largely made up of older homes built in the 70’s and 80’s, lived in by baby boomers who have invested in their homes over the years to various degrees. At the same time, there is an enormous and ever growing segment of baby boomers, 55 to 65, that have stayed on the sidelines during the downturn, who are ready to downsize, build that dream house and move on. These buyers will pay a much higher PSF for the right home. Spec building for this segment is clearly the path to success in 2014. Finally, the segment that saw terrible depreciation during the downturn, those large colonial homes built from 2000 to 2007, will start to see the light at the end of the tunnel and some will make a move despite taking a loss from their original purchase price.
If there is one point that needs to be made going into 2014, it is this: If you want to increase the number of homes you want to sell this year, start spec building now. With build times of 6 to 8 months, buyers will purchase a similar spec home before buying paper. Additionally, plan your Fall batch out now so they are in the pipeline.
Shared with permission from The Gove Group Real Estate, LLC
Posted in News, Real Estate News | Tagged 2014 Projections, Builder, buyer, Gove Group, Market Watch, Mortgage, New Hampshire, New Hampshire Market, New Hampshire Real Estate, New Hampshire Real Estate Market, NH, NH Market, NH Real Estate, NH Real Estate Market, R.H. Thackston & Company, real estate, real estate agent, real estate market, Real Estate Market Update, Real Estate Market Watch, real estate sales, realtor, sales, seller, Statewide Trends, Thackston, The Gove Group, Value | Leave a Comment »
FOR BUYERS: READ THIS BEFORE YOUR HOME SEARCH
It is easy to get distracted by what’s wrong with a home you are looking at than what’s right with it. I am well aware that each buyer has specific preferences when looking and eventually buying a home, so I came across this article that explains what to stay focused on as we look at homes for you. As an Accredited Buyer’s Representative (ABR®), it is my focus to make sure you get the home you want. I look forward to working with you and please let me know if you have any questions.
There is often a lot of discussion about the impact of advertising and marketing schemes on the number and nature of offers on homes on the market. We’ve heard a lot in the last few weeks about how houses are “scarce” and buyers can’t find a house. This seems counter intuitive if house prices are still low and the housing market is still struggling to recover. Often time’s home sellers are sure that if they just change agents or if their agent would just run a bigger ad in the local newspaper or the Walls Street Journal that special someone will come and fall in love with their home – but they don’t, why not?
The work of a listing agent is critical in selling a home but it’s not because of the size or type of ads the agent runs or home many Open Houses the agent does that creates value – almost none of that matters. I have closely tracked lead calls into my office since October 2005 and most of the big real estate franchises have done the same, as has the National Association of REALTORS, and the overwhelming evidence is that buyers look for homes online. If they didn’t, Zillow and Trulia, (bad information that they contain and all), wouldn’t even exist. Good listing agents tell their clients, the Sellers, the truth and help them deal with the home selling market as it is, not as it was or they’d like it to be. Good listing agents help their clients understand that the tax assessment from four years ago is not what the house is worth now and probably never was what it was worth. (It is not unusual in my experience as a REALTOR in New Hampshire to find properties over assessed by as much as 40%. I can sight examples where properties sold for 20% of assessment.) The biggest single problem in determining an accurate market price for a home is Listing Agents not providing accurate information and not working with the home sellers to understand the competitive problems with selling a home. So when the Home Seller guesses about their home’s market value, consider the three biggest factors affecting values in a home based on current consumer preferences and lender requirements. (I had a woman today tell me she couldn’t put her house on the market because in 2005 one neighbor sold their house for 25% more than current conditions suggests, and in 2008 another neighbor sold their house for 50% more than current market conditions indicate.)
Current market conditions and demand are heavily impacted by the three biggest problems for Home Sellers in today’s real estate business: Listing Agents that share this information have good experience helping their clients and their clients understand what they are up against even if they don’t like it. The three issues for Home Sellers are: Functional Obsolescence, Economic Obsolescence and Deferred Maintenance – at the end of my article I have included examples of all three.
In the end the accuracy and success of any marketing plan depends on the agent and client allowing the reality of the situation to govern the transaction and get the listing price as accurate as possible – “denial is not just a river in Africa.”
Functional Obsolescence Economic Obsolescence Deferred Maintenance
CeilingHeights <60” Store with Apartment Over Roof Shingles Deteriorating
Walk-through Bedrooms House with Business Pealing Exterior Paint
Bedroom without Closet Business in Residential Area Leaking Pipes
Knob & Tube Wiring Single Family in Business Broken Windows
Fuses or Pushmatic CB Single Family w/ small Apt Wet Basement
Less than 100 AMP Service Mobile Home built <1977 Chimney in need of pointing
Un-Lined Chimney Structure on Private Road Rotten Sills
No Washer & Dryer Hookup Lead Paint – anywhere Sagging floors
Incomplete Bathrooms Structure on Class VI Road Non-conforming Septic
No heat on second floor Any non-conforming use Heating system problems
Two appliances on one flue Only Wood or Coal Heat Broken/Inoperable Doors
Incomplete insulation No insulation Exposed Insulation
Kitchen cabinets incomplete Kitchen without cabinets Broken Kitchen Cabinets
Dirt Floor in Cellar No Cellar or crawl space Sump pump or drains broken
No bathroom on second floor Out-house Holes in walls & ceiling
Single pane windows Underground Tanks Broken missing screens
Old Linoleum Sub-floors exposed Damaged Carpet & Floors
By Dick Thackston
Posted in Real Estate News, Selling Tips | Tagged buyer, home values, Housing, Listing agents, market data, Obsolescence, real estate, Real estate news, realtor, seller, Selling Tips | Leave a Comment »
I thought it would be worthwhile for both the general public and service members to share some background information on VA Loans at this time. Many of our returning service members as well as members of the General Public are often not fully aware of how this excellent program works. I have edited a portion of my New Hampshire 40 Hour pre-Licensing Course here to help everybody have a little more information about the program.
The VA is authorized to insure loans for eligible veterans. Like the FHA the VA does not normally lend money, rather it guarantees loans made by VA approved lenders. Eligible veterans may purchase: multi-family homes up to four units, new condos or construction of condos, new or used mobile homes and lots for mobile homes, finance the construction of a new home on its own land, or the eligible veteran may also refinance existing loans.
To be eligible for VA financing the subject property must be owner occupied, the Veteran Borrower must have had 180 days of active military service and have received an Honorable Discharge from the service.
There are a few special characteristics of VA financing that are specifically built into the program to protect VA borrowers as well as the VA. Here are the big ones: The subject property must be appraised by a VA approved appraiser and meet special VA Loan specifications. Loan Specifications for a VA loan include: It can be from any regular lending institution that has been approved by the VA. Maximum loan is based on fair market value as determined by the VA appraisal or MCRV, (Maximum Certificate of Reasonable Value). The VA guarantees top 25% – eliminating PMI; no down payment is required: closing costs may not be financed with the exception of the VA Funding Fee, however there is no limit on seller contributions to the VA Buyer’s closing cost expenses. Should purchase price exceed appraised value, the difference must be paid in cash by the VA Buyer, the seller can decrease their price to match the VA appraisal or the VA buyer can withdraw from the contract without penalty from the seller. VA Loans have a maximum term of thirty years; no secondary financing is allowed on VA loans and there can be no pre-payment penalty on VA Loans. Co-borrowers on VA Loans must be married to the veteran or be Veterans themselves. (The VA does not recognize same sex marriages regardless of State Statues.) The Veteran must supply their Certificate of Eligibility – DD214.
By Dick Thackston CRB, ABR, ABRM, BrokerNH, MA & VT
A Brief History of VA (Veterans Administration) Loans
The original Servicemen’s Readjustment Act, passed by the United States Congress in 1944, extended a wide variety of benefits to eligible veterans. The loan guarantee program of the Veterans Administration has been especially important to veterans. Under the law, as amended, the Veterans Administration is authorized to guarantee or insure home, farm, and business loans made to veterans by lending institutions. Over the history of the program, 18 million VA Home Loans have been insured by the government. The VA can make direct loans in certain areas for the purpose of purchasing or constructing a home or farm residence, or for repair, alteration, or improvement of the dwelling. The terms and requirements of VA farm and business loans have not induced private lenders to make such loans in volume during recent years.
The Veterans Housing Act of 1970 removed all termination dates for applying for VA-guaranteed housing loans. This 1970 amendment also provided for VA-guaranteed loans on mobile homes.
More recently, the Veterans Housing Benefits Improvement Act of 1978 expanded and increased the benefits for millions of American veterans
Despite a great deal of confusion and misunderstanding, the federal government generally doesn’t make direct loans under the act. The government simply guarantees loans made by ordinary mortgage lenders (descriptions of which appear in subsequent sections) after veterans make their own arrangements for the loans through normal financial circles. The Veterans Administration then appraises the property in question and, if satisfied with the risk involved, guarantees the lender against loss of principal if the buyer defaults.
In association with the VA’s program, the Service members’ Civil Relief Act protects service members from financial woes on their home loan that may occur as a result of active duty commitments, freezing their interest rates at 6%.
What is the VA and what do they do?
A VA loan is a mortgage loan in the United States guaranteed by the U.S. Department of Veterans Affairs. The loan may be issued by qualified lenders.
The VA loan was designed to offer long-term financing to American veterans or their surviving spouses (provided they do not remarry). The basic intention of the VA direct home loan program is to supply home financing to eligible veterans in areas where private financing is not generally available and to help veterans purchase properties with no down payment. Eligible areas are designated by the VA as housing credit shortage areas and are generally rural areas and small cities and towns not near metropolitan or commuting areas of large cities.
The VA loan allows veterans 100% financing without private mortgage insurance or 20% second mortgage. A VA funding fee of 0 to 3.3% of the loan amount is paid to the VA and is allowed to be financed. In a purchase, veterans may borrow up to 100% of the sales price or reasonable value of the home, whichever is less. Since there is no monthly PMI more of the mortgage payment goes directly towards qualifying for the loan amount, allowing for larger loans with the same payment. In a refinance, veterans may borrow up to 90% of reasonable value, where allowed by state laws.
VA loans allow veterans to qualify for loans amounts larger than traditional Fannie Mae/Freddie Mac conforming loans. VA will insure a mortgage where the monthly payment of the loan is up to 41% of the gross monthly income vs. 28% for a conforming loan assuming the veteran has no monthly bills.
As of January 1, 2006, the maximum VA loan amount with no down payment is $417,000 and can be as high as $625,500 in certain high cost areas. VA also allows the seller to pay all of the veteran’s closing cost.
Posted in Mortgage News, News, Real Estate News, Real Estate Training | Tagged Department of Veterans Affairs, General public, Housing, loans, Mortgage, Mortgage News, real estate, realtor, VA, Veterans, Veterans Administration | Leave a Comment »