Finally, we have the data that shows the market has turned. In the last 30 days, the real estate market has really picked up. Over the summer, the market has had a lot of activity in the properties priced under $100,000 - due in large part to the
First Time Homebuyers Tax Credit, but now all ends are seeing a solid uptick. As of mid-September, we have three homes over a million dollars under contract, as well as several in the over $500,000 range.
Statistics from the
New Hampshire Association of Realtors show that statewide home sales have increased over the previous year for three consecutive months. Sales data released recently by them showed that the number of residential unit sales in August 2009 was up 4 percent over August 2008 sales – from 1,104 in 2008 to 1,169 in 2009. Increased sales activity is having the expected response: Average Days on Market has decreased from a high of 160+, to a more reasonable 137, according to data from the
Northern New England Real Estate Network (NNEREN). With the inventory continuing to shrink, we predict that this will continue to decline over the next 12 months. A healthy market is considered to be in the 90 day "Days on market" range, which we last saw in late 2005. The median sales price, according to NNEREN, is leveling off in the $192,000 range, after bottoming out under $170,000. As the mid and upper markets continue to recover, over the next 12 months I expect this to show a steady but slow increase until we plateau again just over the $210,000 mark.
The final data provided by industry expert
Steve Harney clearly illustrates how the market rebound has been heavily weighted to the lower price segments as First Time Home Buyers and investors are scooping up great values. As the mid and upper level Buyers gain more confidence over the next 6 months, and recognize the values that are being offered, I believe this market segment will also turn, and turn quickly.
$0-100,000 sales up 38.8%
$100,000 – 250,000 sales up 8.7%
$250,000 -5 00,000 sales down 6.2%
$500,000 – 750,000 sales down 8.9%
$750,000 – 1,000,000 sales down 10.6%
$1,000,000 – 2,000,000 sales down 23.3%
$2,000,000+ sales down 32.4%All in all, with the real estate busy season typically busiest in the summer, this year it seems to be happening just a little later in the fall as Buyers are realizing that with the low interest rates, home affordability at an all time high, and properties at competitive prices, and the economy stabilizing, this truly is the time to buy. While the
$8,000 First Time Home Buyer tax credit has provided an incentive to buy, many of our other buyers are buying without the tax incentive, as they are buying knowing that they can invest their money in an asset that they can live in and use, vacation in, or hold onto a beautiful land parcel for future use. Real Estate is a tangible asset that will prove to be a wise investment.
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