Seasonal Report
Spring really is coming...
Grab a sled, and have fun w/ your kids!
Wednesday January 21, 2009
Winter
By looking at the snow banks (with another 10" today), here in beautiful southern Maine, you may not think the spring real estate market is around the corner. With over 50" of snow as of January 28, the winter enthusiasts are thrilled this year! Skiing is fabulous, the ponds are now rock solid for skating and ice fishing, snowmobiling is everywhere, and the sledding once again seems "like when we were kids."
A couple of opportunities for free skiing, skating and tubing in New Hampshire and Maine are available through Winterkids.org and SkiNH.com. Both offer 4th-7th grade students and their families free passes and discounts to Maine and New Hampshire winter activities. My family has taken advantage of these terrific programs...so get out and have some good old-fashioned winter fun!
The market...
For you potential home sellers....don't wait until April! Now is the time to be finishing up the de-cluttering, repairing, and staging phase, and listing your home before all the competition enters the market. Less inventory means less competition for your house. Yes, people do buy houses in January in Maine- they are also usually the more serious buyers, versus the lookers that come out in spring and summer. But also keep in mind the home search time line: home searching in January and February can lead to a contract to purchase, and a customary 60 day closing- which is April, a perfect season to move!
The hot topic of discussion lately: mortgages. One of my rules to live by, is "ask the expert." So regarding the mortgage market, I recommend contacting a reputable lender to help you keep track of the rate movement and your personal qualifications. It's also always beneficial to know your current credit score/history as well. These preliminary services do not cost anything and there are plenty of lenders looking for business out there....if you need any references on local financing sources, let me know.
Some general information on the mortgage market from the myriads of information I receive: Rates on 30 year mortgages haven't been this low, according to financial publisher, HSH Associates, since 1961. On December 31, Freddie Mac reported that average 30 year fixed rates were 5.1%, down 1.3 percentage points only since October! (And rates have dropped even further since December.)
So why wait if you've been considering a real estate purchase? The "experts" are sharply divided on where rates are going, and many think a further drop is destined by mid-2009. Unless you're a real gambler and want to wait even longer, you just may be kicking yourself next year for not taking advantage of these historically low mortgage prices!
Another option to consider for both buyers and sellers is owner financing. Don't be intimidated if you are unfamiliar with this proposition. I recently put a property under contract with a buyer whose self-employment and non-traditional income made it extremely difficult for a lender to consider financing their vacation home purchase. The buyer made an offer to the seller, based on the seller financing the property for 5 years, included a sizable 35% down payment, and a balloon payment for the balance at the end of the 5-year term. Initially the seller was reluctant to accept the role of "financier" since she was unfamiliar with the specifics. But after "asking the experts," in this case, her financial advisor and attorney, the idea of earning a good deal of interest income for the loan, as well as some tax advantages, were very appealing. We're closing on the property 3 weeks after putting it under contract.
There are so many changes in the economy to keep up with- it's difficult to remain positive and not get bogged down with the majority of negative news. But low interest rates, a number of motivated home sellers, low oil prices and spring around the corner are a few lights at the end of the tunnel.
Here's hoping 2009 brings some much needed stability and security for all. And Spring will eventually come - it does every year with our much awaited muddy season!
Cindy
View past seasonal reports.