So while the numbers look okay it is still a long way off from the peak year of ’05 when 112 homes sold YTD and Average DOM was 66/Median DOM 31…….

This tells me that though the number of homes selling is up from ’10 they are staying on the market longer. This could be for a number of reasons but most likely it has something to do with seller’s not recognizing the correction in the market and taking time for them to reduce the pricing to a point where buyers are willing to make an offer.

The average selling price of a home in Hanover went down but only by 1.5% in ’11 ($519K) from ’10 ($527K)…..however it is up dramatically 22% from ’09 (406K). Median selling price is up 4% in ’11 (($475K) from ’10 ($449K) and again a big increase of 18% in ’09 ($385).

Some conclusions that could be drawn are that in ’09 and ’10 the 1st time homebuyers credit was in effect and many new buyers came into the Hanover market but with limited purchasing power. Also, in ’10 and ’11 more buyers came back in the $500K and up market, which took a beating in ’09 and early ‘10 after the October ’08 crash.  However, the homes that are selling in the upper end of the market are taking much larger hit in the list/sell ratio – 7% in ’11 and 8% in ’10.

So, it seems that Hanover and the Upper Valley area continue to feel the effects of the current economic circumstances but in relation to a large part of the United States we continue to be more insulated than most.

Happy Thanksgiving, Carol

Generally speaking, waterfront sales on both lakes have been solid both this year and last year with 11 properties selling on the lakes in 2010 and 7 closed and 1 pending at this point in 2011.  That compares with 3 sales for both lakes in 2009, 5 in 2008, 11 in 2007 and 3 in 2006.  It is interesting to note that lakefront sales in terms of unit numbers and sales dollars have been relatively strong this year and in 2010 in spite of or perhaps because of the recession.

One thing that stands out year to year is that in 2010, 9 of the 11 sales were on Mascoma Lake and sold on average at approximately 1.13% of assessed value.  In 2011, 5 out of 7 sales were on Crystal Lake and have been on average selling for approximately .98% of assessed value.  It seems 2011 has been a good year to buy Lakefront property, particularly on Crystal Lake

If you are looking for a camp on Crystal Lake, 80 Hawley Drive (MLS 4058271) appears to be well priced at $329,000 when compared to its assessed value of $378,000.  The price also compares favorably with recent sales of similar 4 season camps with approximately 100 feet of shore frontage.

If you would consider renovating an antique cape on a nice .74 -acre lot with 401 feet of water frontage, 436 Lockhaven Rd. (MLS 4085081) is priced at its assessed value of $349,900.  While not having the water views, this would make a great home with its very nice lake frontage to enjoy.

Lastly, if you are looking for a place to park a camper and a boat on Mascoma Lake, how about a .15 acre lot with 59 feet of lake frontage a public and a sewer hook up available on Rt. 4A (MLS4079586) priced at $134,900, $8,100 below its assessed value.  While you won’t have much elbowroom you will have very inexpensive access to a great lake.

A particular sale that stands out in 2010 is 64 Shaker Boulevard on Mascoma Lake, a very nice four season cottage with 230 feet of shore frontage on .6 acres that sold for $350,000 after just 19 days on the market in October of 2010.  This same cottage was listed for sale in late May of 2007 at $274,900 and sold after 9 days on the market in a bidding war for $350,000.   As good an indicator as you will find that lakefront values have remained reasonably stable over the last few years.

When you look at the lakefront inventory remaining on the market at this time, it shakes out like this.  There are 7 properties currently listed on Crystal Lake and 6 on Mascoma Lake, of the 13 properties, 9 are priced well above their assessed value and in general have spent significant time on the market.  The remaining 4 properties are priced at or below assessed value which indicates to me that the Sellers are in tune with the actual market and motivated to sell.

If you are considering buying property on either Mascoma Lake or Crystal Lake, please come in and talk with Carol or I.  Not only can we help you sort through the market data; we can help you assess all the attributes that contribute to the value of a particular lakefront property.  Having just purchased property ourselves on Mascoma Lake in 2010, we are uniquely qualified to help with your lakefront purchase.

Cheers, Matt

The Norwich Inn has a brewery to serve the restaurant and the locals, my brother in-law and I enjoyed a few pints of the signature brew – Whistling Pig Red Ale.   The service was great and the food was all well prepared, I had the ribs done in a beer sauce and smoked in house – they were excellent.  Lean, smokey and with a sticky beer BBQ sauce, I’ll be back for more another day.  The fish special was Striped Bass, always a great tasting fish when caught on the New England coast and brought to your plate.  The Filet was also exceptional, clearly the Chef at the Inn knows how to buy, prepare and serve great food.

The Norwich Inn remains one of the unique places in the Upper Valley that provide nightlife and energy in our small town world.  If you would like to find out more about the food, beer and accommodations available at the Norwich Inn, check out their website or drop by for a pint.

Check out more about Norwich VT at theuppervalley.com

Cheers, Matt

Pending homes however are at historically low levels for the period at 29 through August this year.  Only two of the last 10 years have shown lower pending numbers for the period, 2009 & 2010 at 28 and 22 respectively. Prior year ranged from 42 units pending in 2008 to a high of 75 units in 2005.  With average days on market for single-family homes at a ten year high of 137 for the period, homes are spending an extra month or two on the market when compared to the pre-recession years.  This seems to indicate that the market has cooled significantly this year as the selling season has progressed relative to past years.

Median and average sale prices however stand at $607,573 and $525,000 respectively; these values have only been exceeded in the years of 2008 and 2010.  Homes in Hanover are selling thus far in 2011 at historically high average and median prices as compared to pre-recession years.

So what does this mean?  It seems to me that with sold prices and total units sold at historically high levels, Buyers have been there in 2011 for Hanover homes that offer the quality they require and the value they seek.   Yet with inventory and days on market at historically high levels and pending sales at historically low levels, it seems to follow that a significant number of Sellers are not offering their homes to Buyers at the value required today relative to the attributes of the home.

What would explain this?  I did a quick random survey of homes currently on the market in Hanover and found several homes that are now priced at or near what the homeowner paid for the home.  Obviously the prices paid in the boom years are haunting the market now, some Sellers are just not able or willing to adjust pricing to the levels required to obtain a sale today.  Another factor seems to be that qualified Buyers now are just not willing to deal with issues a home may have and some Sellers are slow to recognize this change in Buyer behavior.  It is what I’ll call the Goldilocks rule – if it is too hot or too cold Buyers will keep looking until they find the home that is just right.  As a result homes on busy streets, homes that are dated or that have other challenges will not sell until the defects are adequately compensated for in the price – period.

If you are considering buying a home in Hanover, we would be glad to help you through the process.  We have the experience, patience, perspective and data to help you find the home that is just right for you in this turbulent market.

Matt & Carol

Starting with the town of Hanover, we pulled data from NNEREN for the years 2001 through 2010; here are some of the highlights.  The bubble years are clearly identifiable in the Hanover market as the years of 2005, 2006 and 2007.  Total sales reported by NNEREN peaked at $50,686,894 in 2005; this was up a whopping 18 million from 2004, literally a 50% increase in total volume in 1 year!  It dropped 2 million each of the following years with 2007 closing out at $46,934,069.  Things clearly cooled off in 2008 as total sales dropped another 9 million, but there is no doubt the bubble had burst in 2009 as total sales plummeted to $26,853,300.  Hanover had not seen total sales volume that low since 2002.

As total $ volume rose, so did total units listed and sold – it seems everybody who could buy or sell was in the game during the years of 2005-2007.  New listings peaked in 2006 at 130; sold units peaked in 2005 at 92.  2005 was also the best year Sellers had in getting what they asked for a property with the median list/sell ratio reaching a high as 97.6%.  Pending deals also peaked in 2005 with 94 units pending for the year.

Well, times are certainly different now.  2009 saw the lowest total dollar volume of real estate sold in Hanover in 10 years, $26,853,3000 – almost ½ the volume of the peak year of 2005.  From working through that market, I can tell you that it was all about high price listings not selling in 2009.  That was the end of firm pricing for Hanover, as the pricing at the top of the market softened, it caused the middle market in Hanoverto soften as well.  Oddly enough you don’t see this reality in the NNEREN data directly.  Average sale price has actually been remarkably stable; it actually reached a 10 year high in Hanover in 2010 at $611,269.  What this really reflects is a big change in the mix of homes being sold with far fewer being sold, but at higher average and median pricing.  Unit sales in Hanover have been at 10 year lows, last year 55 homes sold in Hanover, 52 in 2009 – a drop of 45 units from the peak in 2005.

So what does all this mean for today’s market?  Taking a look at current 2011 NNEREN data helps put things in perspective.  New listings have been appearing on the market in numbers consistent with the boom years, but they are not going under contract as they did then.  For example, lets look at 2005, 2010 and 2011 year to date numbers.  In 2005 41 new listings hit the market through March, 42 during the same period in 2010, 41 new listings have come on the market to date in 2011.  In 2005, 29 homes were pending by the e/o March, 2010 had 8 pending – there are 3 pending for the 2011 period.  In 2005, 15 units sold during the period, in 2010 it was 8 – 2011 has shown 6 units sold.  When you look at contingent listings, properties under contract that presumably will soon sell, the picture brightens somewhat as there are 10 properties in this category.

Obviously the Hanover market is still finding its footing, as it seems the rest of the nation is.  If you throw out the 2009 spring data as literally no one was buying real estate during the period immediately after the 2008 crash, the spring 2011 market is the slowest in a decade with only 9 units sold or pending.   2011 is clearly starting off as another year where market conditions favor Buyers in the Hanover real estate market.  It will be interesting to see how things evolve as the rest of the year unfolds, we will keep you posted.

My wife and I both enjoy the slopes and don’t like crowds so we have taking a liking to the Dartmouth Skiway.  Killington and Sunapee are nice resorts, but on the weekends it can be like skiing through Boston at rush hour.  The Dartmouth Skiway has all the terrain we need to enjoy a half day on the mountain.  And the price is right (here).  It’s a short drive up to Lyme and the snow this year has been great, so we’ve had a blast at the Skiway.

Wine, Beer and Cheese tasting at the Lebanon Coop.  This has become a weekly event for me.  Every Friday afternoon there are a few booths set up featuring some tasty food and drink. The wines that are featured are different every week and there are usually about 3 to 5 varieties to sample.  The beer and cheese are usually from local breweries and farms.  Like the wine, there are is a range of varieties to choose from.  When you stop to pick up something for dinner on Fridays make sure you don’t miss the free samplings, it’s a great way to get the weekend started.

Dartmouth Sporting events are another thing we enjoy.  My wife and I weren’t big hockey fans before moving here, but after watching Dartmouth take on other Ivy League opponents in front of a packed house, we were hooked.  If you enjoy sports, check out the Dartmouth athletic site (here) and see schedules for upcoming events.

If night life is your thing then you won’t be disappointed. There are plenty of places to enjoy a bite to eat and cold drink. Some of our favorites include Murphy’s (here), where it can be hard to find a table on Friday and Saturday. They have some really good food as well as plenty of beer on tap.  We also enjoy the Canoe Club in Hanover (here).  Again, great food and cool atmosphere make this a great place to hang.  Salt Hill Pub (here)is great as well.  The pub has two locations, the original in Lebanon and a newer location in Hanover.  Good pub fare and usually some good music on the weekends.  A place a little off the beaten path that we enjoy is Whaleback ski area (here)on Thursday night.  Thursday is race night a Whaleback and they open the bar upstairs in the lodge.  It’s usually shoulder to shoulder and always a great time.

This is but a small sample of what DINKs do in the Upper Valley.  As winter comes to a close (woohoo) and the days get a little longer, it won’t be long and we’ll be back into the spring and summer when the activities are endless.  If you have questions or comments please let us at Housing Solutions know.

Chris

Hanover has seen a slight decrease in the number of units sold, 74 this year compared to 86 in 2009, a drop ofabout14%.  Prices seem to be on the rise in the Hanover area. The average sale price has jumped 27% from last year. In 2009 the average was $409,959 and in 2010 the average sale price has shot up to $522,267.  Average days on the market are down as well.  In 2009 homes were on the market an average of 133 days, and in 2010 homes are being sold at an average of 110 days.

In Lebanon the YTD numbers are similar to 2009.  The number of units sold has increased 8.5% from 117 in 2009 to 127 in 2010.  The average sale price changed very little over the course of the year.  In 2009 homes sold for an average of $215,212 and in 2010 an average $212,817.  Average days on the market in Lebanon have remained steady as well, in 2009 homes were on the market for 112 day and in 2010 homes are sitting for an average of 119 days.

More Upper Valley stats will be available shortly. I think we might head across the river and look at Norwich and Hartford.

1. A short sale can be a long process. In a short sale, the property is sold for less than the outstanding loan balance. In this economy, short sales have received a lot of attention but many buyers may not realize that short sales may in fact be a lengthy, complex process requiring multiple approvals.
2. Set a realistic budget. Low housing prices make it even easier for home buyers to stay on budget. Rather than shopping at the upper end of your budget, go a little lower to allow you to comfortably afford your home in the event that you experience a reduction in income.
3. Buy with a long term view. If you plan to sell your home in a year, you risk losing money, even if prices rise slightly. Buy with plans to stay put for a few years to maximize your investment.
4. Don’t skip the details. In addition to reading the fine print and researching the neighborhood, get a home inspection to ensure that you are not later surprised with unexpected repair costs.
5. Choose a representative that will advocate for your needs. Exclusive Buyer Agents (EBAs) only work with home buyers and always represent the interests of the buyer throughout the entire real estate transaction.

Some good stuff to think about if you are planning on buying real estate in Hanover, Lebanon, Norwich, Hartford, or any other town in the Upper Valley.  If you have any questions you just let Housing Solutions know.

Chris