It has been quite a ride in 2009, rising foreclosures, lower housing prices, and at the beginning of the year it all was looking so bleak. However, it would appear we have hit bottom and are rebounding, both nationally and locally. Fed Chairman Ben Bernacke was recently quoted as saying,

"Housing in the coming year is going to be a relative bright spot - a helpful driver of national economic growth, rather than the wet blanket it's been for the past couple of years."

The headlines are everywhere: "Pending home sales have risen for nine months in a row, a first for the series of the index since its inception in 2001, according to the National Association of Realtors. "New Hampshire home sales show 8 percent increase in October" according to the NH Association of Realtors. Locally, from the graphs you can see we have compared the first 11 months of 2009 to the same time frame in 2008. For some towns like St. Johnsbury VT the numbers stayed relatively the same. 30% more houses were sold, with a slightly lower sales price from the year before and the days that the houses stayed on the market actually decreased, so for St. Johnsbury, the market really held its own year over year. However, for the towns of Lyndon and Burke, average selling prices dropped just over 20%, which are numbers that have been seen on the national scale. In New Hampshire, Littleton experienced a similar feat as St. Johnsbury. More houses sold, with a similar sales price year over year, but a higher number of days the house stayed on the market. For the town of Plymouth, more houses sold in 2009, the average selling price was up by 20% and days on market increased slightly. Very encouraging indeed. So while doom and gloom seemed to prevail in the media, and in water cooler discussion, many of our larger area towns held their own and weathered the storm in decent shape. Granted this data is only through the first of December, but we don't expect huge changes at the end of the year. What drove the market this year? Well, certainly the First Time Home Buyer Tax Credit of $8,000 helped, as some buyers raced to beat the November 30th deadline, which has now been extended until the end of June. For others, they recognized the good values of the homes being offered, and made purchases either for themselves to live in, or are going to use them as an investment tool. For 2010, we expect that the new Move Up Tax Credit of $6500 will certainly help drive some sales. This tax credit is for buyers who already own a home, but are purchasing another one, and it doesn't have to be more expensive than the one they currently own. The First Time Home Buyer Tax Credit has been extended until June of 2010, and that's an $8000 tax credit for someone who hasn't owned a home in 3 years. There is more information about these tax credits on our website, www.peabodysmith.com But we can't talk about 2009, and even 2010 without discussing the foreclosures and short sales we have seen. Homes are selling that have been foreclosed on, and we have helped to facilitate a number of "short sales" - sales where the sellers owes more on the property than they can sell it for. For sellers, this is a terrifying position to be in, but its imperative to be pro-active and reach out for help. There are two area resources to help - AHEAD Home Ownership Center in Littleton (and they serve Plymouth and beyond) and Gilman Housing Trust in Vermont Both of these non-profits have programs to try to help you should you find yourself in this position. But please, give us a call, talk to an agent, and let's see what we can do to help. 2010 should certainly see the market rebound a bit, but it will be many years before we see the same price levels that we unnaturally hit in the boom times of 2005. The rebound will be at more sustainable levels over many years, leading to a healthy market again. I've said it before, and it bears repeating. Interest rates are at their lowest levels right now, and the housing affordability index is at its lowest since 1970, if you are ready to buy a home, or invest in the market for the long term, this is the time to do it. Selection is good, and its a buyers market. Give us a call, develop a relationship with an agent. Let us get to know you, so we can help you find the home, land, business or rental that you've been waiting for.