Friday, October 16, 2009

120 Acre Sale in Glen Spey

A listing just went to sold status in the mls. It is 120 acres on Van Tuyl Road in Barryville, sold for $200,000. Nothing special about the land, but nothing really negative about it either, no power lines or steep grade. It is an estate sale, so perhaps there was some motivation with multiple siblings (just surmising) however, this cannot be classified as a distressed sale. It sat on the market for almost 700 days, price drops from $499,000.

This puts us in a land price area we have not seen for some time in this county--under $2,000 an acre. And it reinforces what I have been saying all summer. Buyers are only pulling the trigger when they feel they are getting a great deal.

At any rate this is going to add an interesting twist to large parcel land comps. I added the link to the listing below.

Wednesday, October 14, 2009

Speculation on the Tax Credit Extension

From the Re/Max Mainstreet Website

"Quick passage by the House last week of a bill extending the $8,000 home buyer tax credit next year for military, diplomatic and intelligence personnel serving overseas increases the odds that Congress will agree to an extension, maybe even an expansion, of the entire credit program well into 2010.

The White House is also signaling that it sees the overall tax credit program – currently set to expire November 30 – as an important element in cutting the unemployment rolls and stimulating new jobs next year.

After an economic policy strategy meeting last week in the Oval Office involving President Obama, House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid, congressional aides said Democrats generally support an extension of the housing credit.

Reid already has made clear he wants an extension. He is co-sponsoring a Senate bill that would do so for six months.

Congressman Charles Rangel, chairman of the tax-writing House Ways and Means Committee, sponsored the one-year extension of the credit for military and other personnel serving overseas, and is reported by aides as favoring an extension for the entire program.

The White House has not publicly committed to an extension, but has confirmed that the President is seriously examining that option.

An unexpected development that emerged following last week's White House meeting was the possibility of opening up the credit to a broader group of buyers next year - people who sell their current homes and buy a replacement home.

Though details were scanty, Capitol Hill sources said one option on the table would be to provide a tax credit – most likely at the $8,000 level – to replacement home buyers whose incomes do not exceed some limit.

The current credit phases out for single taxpayers with incomes above $75,000, and married purchasers earning $150,000. "

I give it a 50/50 shot that it will be extended. Funny thing is now that we are coming up on the dealine, I have had a few inquires about whether buyers can get in under the wire.

Tuesday, October 6, 2009

Busy, Busy...and the New Yuppie.

It has been a while since my last blog post. I have been trying to do once a week, but this past week has been so busy, that I haven't had a chance. Again busy doesn't always mean money in this business, and so far none of this flurry of activity has generated anything concrete, but as we all know, buying a home is not like buying a loaf of bread. Especially with a second home, the idea needs to percolate and age a bit, before it comes to be. All of the new inquiries these past two weeks are new to the process. And that brings me to the topic of this post.

In my own little real estate world, it seems the fear of the "next great depression" has passed. Prospective buyers have emerged from the fallout shelters. Most of the ones who have contacted me are young urban professionals, 25-35, double income couples, (whether gay or straight), in which both parties are pretty even economically. A few have kids, but most don't.

However the "yuppie" stigma couldn't be more off. It seems anything over 2,500 square feet is too big. I have heard, "a little place to get away to." or "cabin in the woods." Heating it and taxes are a major concern. Mcmansions and anything showy is frowned upon. A new frugality seems to have emerged. Not just because of the recession, but it almost seems inherent in this generation.

The other thing is that the buyers have done their research and are well informed. Very often they already know the last sale price, lot dimensions, taxes and sometimes even mortgage information without me telling them. I love it. Working with a savvy motivated buyer makes my job much easier.

However value is the key. Gone are the days where a buyer stretches more than they had originally wanted to. Anything less then ten percent off the asking price is dismissed at hand. It really seem as though the "less is more" era has emerged.