It's a great time to buy

MILLBROOK — There is complete agreement among four of Millbrook’s real estate brokers — Max Goodwin, Homer “Zip� Guernsey, Paula Redmond and George Whalen — who were interviewed by The Millerton News last week: Now is a great time to buy real estate because of low interest rates and available local financing, motivated sellers and a large inventory of homes.

What is the state of the real estate
market in Millbrook?

Whalen has seen “consistent sales in 2010� and Redmond says the market is “chugging� along and is better than last year. But Guernsey and Goodwin are more pessimistic in their assessment. They both experienced a lively spring season, but since then activity has slowed. Guernsey is hoping that after a quiet summer, the market will pick up in October while Goodwin is looking forward to the spring of 2011, which he expects to be the best in four years.

All four brokers generally agreed that the real estate market will not improve until consumer confidence, the overall economy and the employment picture improve, and they concur that the slow real estate market in Millbrook and town of Washington is no different than the rest of northern Dutchess County.

There’s disagreement about whether the peak was 2005, 2006 or 2007, but the brokers do agree that asking prices have fallen substantially. Estimates from the four agents ranged from as much as Goodwin’s 40 percent to 30 percent to George Whalen’s guess of 20 to 25 percent.

“It’s only the last month or two that prices have really bottomed out,� according to Goodwin.

Redmond said, “Buyers don’t need to wait. Prices have already adjusted down.�

At the same time, she observed that short selling and foreclosures are still occurring.

Have prices stabilized?

While inventory is high, Whalen sees no glut or oversupply in the market and believes prices have stabilized. Guernsey cautiously said, “It remains to be seen.�

Redmond observed that more properties are coming on the market than are selling, and Goodwin felt that while prices may not fall a lot from here, the rapid appreciation in the value of real estate is probably a thing of the past.

What are buyers

looking for?

All four brokers confirmed that buyers are looking for a property in move-in condition. No fixer-uppers unless a reality TV show is involved. No one wants to renovate, especially weekenders.

The description of buyers’ dream houses has expanded to include contemporary homes, as well as traditional. But the ideal still remains an old farmhouse in good condition in a private, country location.

Goodwin observed that “green,� environmentally sustainable, energy-efficient design is quickly becoming more important to buyers. Despite low maintenance, vinyl siding remains a negative.

Second-home buyers continue to be important to Millbrook brokers, accounting for 50 to 75 percent of their business, although Redmond has experienced an uptick from local full-time residents. Redmond says there is a lot of interest at properties priced below $600,000.

Activity at the higher end of the market is still weak. Guernsey shared the gloomy statistics on the overall market for homes priced at $1 million and up from the Mid-Hudson multiple listing service (MLS). Year to date there have been only nine sales over $1 million in all of northern Dutchess compared to 21 in the peak year of 2007. There are currently 104 listings on the market above $1 million. Average time on the market was 268 days, and properties sold on average at 86 percent of their listing price.  

Where are the bargains?

Whalen said some buyers are looking for a good deal and are disappointed when they can’t steal a property. Redmond concurred that people are not knocking 30 to 50 percent off the asking price if homes are priced correctly and estimated that 15 percent might be average. All the Realtors felt that there are bargains at today’s price levels in correctly priced properties; however, Guernsey said he feels that more than half of the inventory on the market is still overpriced.

Guernsey and Whalen have calculated that people can now buy a home for less than the cost to build. Goodwin especially sees deals in the high-end market, where he estimates that properties may go for 50 percent of the price compared to three to five years ago. Whalen said that there is very good value in land and starter homes.

And a cash buyer, Goodwin pointed out, always has a better chance of bargaining on price.

Is financing available?

Redmond mentioned that local banks are providing financing at low interest rates to qualified buyers. She estimates that 80 to 85 percent of transactions are contingent on financing. Whalen, who is president of the Bank of Millbrook as well as a real estate broker, agreed that his bank “hasn’t changed the way we do business. We’re still making loans.�

Goodwin said he just refinanced his own home with a 15-year mortgage under 4 percent.

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