Housing Market Slowdown

[Biggd]

Construction is still very busy, but real estate sales have definitely slowed.
Many contractors were so busy the past few years that they were take large deposits from customers just to get a slot on their schedules.
I know a few people that bought in my neighborhood that had to give large deposits to get contractors that were booked a year out.
It will take some time to work through those projects, but they will eventually slow down also.
When there is a real estate boom there is always a construction boom that follows it.
A beautiful waterfront log cabin just went on the market this past week on my street, over 2 million, we'll see how long it takes to sell.
They have had two showings so far, so there are people looking.
Two years ago, this home would have multiple offers over list as soon as it hit the market.

[BillTex]

Originally Posted by Couple of Lakers

Why is that a "red flag"? It's been this way since they were turned into condos. Every unit has their own assigned boat slip and a spot for a jet ski. The dock is maintained by the HOA. It's never changed and never been a problem. Why would it be? The huge benefit is that you are not paying taxes on another potential 300K in value added to your home for these amenities. Maybe some people like paying more taxes. We don't. Hopefully no one from the city is following this and they change their mind

There may not be a “tax” but is there an association fee?
Tomato…tomAto.

[John Mercier]

Originally Posted by Biggd

Construction is still very busy, but real estate sales have definitely slowed.
Many contractors were so busy the past few years that they were take large deposits from customers just to get a slot on their schedules.
I know a few people that bought in my neighborhood that had to give large deposits to get contractors that were booked a year out.
It will take some time to work through those projects, but they will eventually slow down also.
When there is a real estate boom there is always a construction boom that follows it.
A beautiful waterfront log cabin just went on the market this past week on my street, over 2 million, we'll see how long it takes to sell.
They have had two showings so far, so there are people looking.
Two years ago, this home would have multiple offers over list as soon as it hit the market.

My guess. Quite a while.
Unless it is priced as a teardown.

Existing units being purchased and renovated are showing strong demand for English cottage style.

[BroadHopper]

I read in a trade journal the Southern states rely on Mexican immigrants, especially Texas. 80% of the workforce has been affected. Many are afraid to cross the border. Large development construction has almost stopped!

My son-in-law is a Project manager in Texas. He was let go because there was no work.

[Biggd]

Originally Posted by John Mercier

My guess. Quite a while.
Unless it is priced as a teardown.

Existing units being purchased and renovated are showing strong demand for English cottage style.

This log home needs nothing, move in ready, IMO!
I don't see real log homes ever losing their appeal in the NH lake and mountain towns.

[fatlazyless]

Originally Posted by Biggd

This log home needs nothing, move in ready, IMO!

And here it is, 26 Sawmill Shores Rd, Meredith NH 03253 .....http://www.zillow.com/homedetails/26...86703584_zpid/ .... asking $2.2mil ...... built in 2000 ..... 0.68 acre lot ...... 145' Lake Waukewan waterfront in a quiet cove east of Chapman Island...... listed Sept 10 ..... last sold on Nov 15, 2010 for $785,000 ..... 2023 property tax $15,793/yr ...... just picture yourself fly-rod fishing and catching a 18.2-lb, 42 5/8" monster musky while standing in ice cold water, up to your neck on April 1, the opening day of fishing season, 2026!

Walking Score 0/100 car-dependent

Bike Score 16/100 somewhat bikeable

Does this cove inlet have a name like Sawmill Cove or something that refers to the sawmill run by Ebenezer Waukewan back in 1763?
.........

"Walking two miles each and every day, keeps the doctor away!"

[John Mercier]

Originally Posted by Biggd

This log home needs nothing, move in ready, IMO!
I don't see real log homes ever losing their appeal in the NH lake and mountain towns.

Should the buyer not wish to change anything, it may work. But renovation, especially on a shell, will most likely have to go through specific hurdles due to non-conformance and engineering limitations.

Imitation log siding will not have the same restrictions, but due to being raw wood will generally have higher maintenance requirements.
Many that use it, go to a solid stain as a means to extend the life and lower maintenance intervals.

[sky's]

[QUOTE=John Mercier;402868]Very hard to get quiet on the lake(s) now, and much less of a focus on hunting and fishing for those that are.

Smaller lakes and ponds are offering a better outlet.[/QUOTE

[Biggd]

Originally Posted by John Mercier

Should the buyer not wish to change anything, it may work. But renovation, especially on a shell, will most likely have to go through specific hurdles due to non-conformance and engineering limitations.

Imitation log siding will not have the same restrictions, but due to being raw wood will generally have higher maintenance requirements.
Many that use it, go to a solid stain as a means to extend the life and lower maintenance intervals.

Not sure what renovations you're taking about, restaining the logs is just normal maintenance. The house is mint and doesn't need renovation, but people do like to add their own personal touches.
If someone is looking for a tear down or a complete renovation, then this is not the house for that!

[Couple of Lakers]

Originally Posted by BillTex

There may not be a “tax” but is there an association fee?
Tomato…tomAto.

HOA is only $200/month. Lowest waterfront association fee on the lake from what we can see.

We did have two different couples that wanted to buy at 699K. Problem was they wanted to rent in the off season and our association doesn't allow rentals. Living here full time we like that policy but not so much when you're selling.

[BillTex]

Originally Posted by Couple of Lakers

HOA is only $200/month. Lowest waterfront association fee on the lake from what we can see.

We did have two different couples that wanted to buy at 699K. Problem was they wanted to rent in the off season and our association doesn't allow rentals. Living here full time we like that policy but not so much when you're selling.

Whether it is a “tax” or an “HOA fee” any potential new owner will need to pay it (it is not optional). I am sure they factor that in to their purchase price (I would).
GLWS, the right buyer will come along.

[John Mercier]

Originally Posted by Biggd

Not sure what renovations you're taking about, restaining the logs is just normal maintenance. The house is mint and doesn't need renovation, but people do like to add their own personal touches.
If someone is looking for a tear down or a complete renovation, then this is not the house for that!

Buyers have been avoiding products that need to be continually refinished.

We finally got in Q8 log siding oil, but stripping something that has been previously stained with another product can be a chore.

And trying to replace the real logs with a factory prefinished product is not an option that I would suggest.

Changing locations of openings in the shell can sometimes be done, others not so much. The shell is the structure.

[WinnisquamZ]

Was at Middleton this past weekend and saw that log and siding stain was priced at $138 per gallon!


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[fatlazyless]

For $14.97/gal Walmart has Olympic Quick Cover, one gallon, cedar or redwood color, semi-transparent interior/exterior wood stain ....... 2-day order

Good for decks, fences, siding, railings and outdoor furniture.

Dries in two hours. Covers 350 square feet.

Cleans up with soap and water so is probably a latex stain.

On the front of the gallon in big letters, it says EXTERIOR STAIN and in the description it says interior/exterior stain.

[Descant]

Originally Posted by Couple of Lakers

You are not factoring in the value of the boat slip which is worth about 200K if you were to purchase one separately. There is also the value of a jet ski lift (technically another boat). What is that worth? Also when the water is not this low you can dock another boat right off of your deck.

Folks cannot seem to understand those items are not included in the value of the home itself.

As I read the listing, the RE agent talked about new floors. If you think there is great value in the docks (I think so) that should be the lead. This is the wrong RE Agent to sell waterfront.

[BillTex]

Our cabin is cedar log sided. Inherently rot/weather resistant. Just purchased a gallon of Cabot treatment/stain for some touch up which was ~ $50. Love the log cabin vibe!

[Biggd]

Originally Posted by John Mercier

Buyers have been avoiding products that need to be continually refinished.

We finally got in Q8 log siding oil, but stripping something that has been previously stained with another product can be a chore.

And trying to replace the real logs with a factory prefinished product is not an option that I would suggest.

Changing locations of openings in the shell can sometimes be done, others not so much. The shell is the structure.

You've takin this conversation way off course.
Not sure what remodeling a log home has to do with a slowing real estate market?

[BroadHopper]

A colleague of mine built his log cabin off Sebago Lake. He is satisfied with DuckBack products. 40 years old and counting!

[tis]

There might be a slowdown but a Wolfeboro realtor just posted he has 9 houses under agreement right now.

[John Mercier]

Originally Posted by Biggd

You've takin this conversation way off course.
Not sure what remodeling a log home has to do with a slowing real estate market?

Part of the slowing is the product coming into the market.
Unique properties need to find just the right buyers at this time.

[Lake Fan]

Seasonal island homes on piers, drawing water from the lake, are now selling routinely for over a million dollars. Not sure how that fits into the market narrative.

[fatlazyless]

Believe it is almost impossible to get a mortgage for a house built on piers, ie wood or cement blocks, or one that draws its water from the lake. Something to do with federal gov mortgage rules for banks.

So, could be that million dollar island homes typically get purchased with all cash and no mortgage?

Hey ..... just look at this western, big waterfront view and the 350' untouched waterfront privacy ...... ooh la la!

[TomC]

Meredith Village Savings Bank will write mortgages on non-conforming seasonal homes (providing the LTV and the rest of their underwriting criteria are met).

[mofn]

To pick up on what TomC in the above post said.
You have to find a bank that does non-conforming seasonal home loans. I just closed last week on one (not winni, just south of Rangeley). My bank in N.H. shot me down the next day. The bank I then went to who does non-conforming loans approved it in 14? business days, but the way they spoke it’s a niche market for them.
Problem for some buyers where it’s “a seasonal home” 20% down and at these interest rates! You want a construction loan interest rates are even higher!
Then throw in N.H. property taxes, for most sticker shock sets in.
20 years ago a real estate agent told me for every 1/10 of a percent raise in interest rates freezes out 70K? buyers.
A good tool I used to track the market I was in is Zillow, scroll down and they will have the prior market/asking/final price history for most. Also there you can track what has been sold in the market parameters you set.
And to answer the original question are sales down…yes in my opinion…how much not sure?

[ApS]

Originally Posted by TheTimeTraveler

Interesting that you found a very rare assumable loan. Is that a VA loan?
For the younger Forum readers, most every home loan written was assumable up until the late 1960's or early 1970's. It was then that the lenders woke up and realized that they could make a lot more money by writing a higher priced fresh loan (charging "points" and closing costs). Assumable loans all but disappeared.Profits always seem to rule the day.......

Yes, it's a 2016 brick-and-mortar VA bank loan, at 3.125%

Just found out when I requested a pre-purchase application, now enroute, post-haste, to me.

[Couple of Lakers]

Originally Posted by tis

There might be a slowdown but a Wolfeboro realtor just posted he has 9 houses under agreement right now.

That's fantastic! If we can ask who is that realtor?

There's been an unbelievable development in the last 24 hours with regard to our place for sale. No it hasn't sold yet, but we will try to post what's happening sometime tomorrow. We're exhausted after today. But it's kind of nuts and we're speechless right now.

Again, we appreciate this thread!

[WinnisquamZ]

Rates are dropping. Another drop expected this week


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[Descant]

Originally Posted by WinnisquamZ

Rates are dropping. Another drop expected this week [/url]

I doubt a couple of BPS makes any difference to people buying a second , lakefront; Winnipesaukee property. First time homebuyers are the ones affected.

[codeman671]

Originally Posted by fatlazyless

Believe it is almost impossible to get a mortgage for a house built on piers, ie wood or cement blocks, or one that draws its water from the lake. Something to do with federal gov mortgage rules for banks.

So, could be that million dollar island homes typically get purchased with all cash and no mortgage?

Hey ..... just look at this western, big waterfront view and the 350' untouched waterfront privacy ...... ooh la la!

There certainly are local banks that will lend on these. It’s a portfolio loan, where they will service it in house and not broker it. Bank of NH used to do it but completely got out of the mortgage business. Meredith Village does as well as a few other local banks. We sold ours last fall and the buyer used Meredith.

[tis]

Originally Posted by Couple of Lakers

That's fantastic! If we can ask who is that realtor?

There's been an unbelievable development in the last 24 hours with regard to our place for sale. No it hasn't sold yet, but we will try to post what's happening sometime tomorrow. We're exhausted after today. But it's kind of nuts and we're speechless right now.

Again, we appreciate this thread!

Ronn @ Berkshire Hathaway Verani. It used to be Spencer Hughes.