Existing-Home Sales on Course for Best Year Since 2006

[caption id="attachment_3622" align="alignright" width="300"] Click to download the full guide[/caption] Every year the National Association of Realtors gathers in Washington DC for a week of policy meetings, discussions with our elected officials and presentations by industry leaders.  Lawrence Yun, chief economist of the National Association of Realtors®, presented his midyear economic and housing forecast and his report indicates that New Hampshire is faring even better than the national market. According to Yun, monthly existing-home sales were uneven in the first quarter but still came in at a seasonally adjusted annual rate slightly higher (5.29 million) than last year's pace (5.26 million). Demand has mostly remained strong – especially in the top job-producing metro areas – and is being upheld by mortgage rates near three-year lows and the 14 million jobs gained since 2010. "The housing market continues to expand at a moderate pace in spite of the fact that home prices are rising too fast in some areas because of insufficient supply fueled by the grossly inadequate number of new single-family homes being constructed," said Yun. "The good news is that pending sales in recent months have remained stable and should support a modest gain in home sales heading into the summer." Yun forecasts existing sales to finish 2016 at a pace of around 5.40 million – the best year since 2006 (6.48 million). After accelerating to 6.8 percent in 2015, the national median existing-home price increase is forecast to moderate slightly to between 4 and 5 percent this year. With a snowless winter and a spring that seems elusive, we have seen ups and downs so far this year; but first quarter home sales in New Hampshire are well above the national average with 5,491 homes sold in the first quarter of 2016, compared to 4,486 units in 2015 – a whopping 22% increase! In the same time frame, average sale prices increased 4.86% from $205,025 to $215,000, which is right where Yun is reporting. It is our opinion that the market is still well below the 2006 peak in both volume and pricing; with tighter banking regulations, more realistic Buyers, and continued availability of low, fixed-rate mortgages, there is little to no risk of a repeat of the market turmoil we saw then. LOW INTEREST RATES MAKE HOMES AFFORDABLE Although the Feds raised interest rates last fall for the first time in a decade, and another increase is anticipated this summer or early fall, long-term fixed rate mortgages are available at record low rates. Local banks are offering fixed rates between 3.00% and 4.00%. Your purchasing power has never been greater! In 1985, a payment of $995.00 would get you a $100,500 home. That same payment today would get you into a $210,000 home, and is lower than most rents. Call one of our Sales Associates today to see how we can help get you pre-qualified and ready to buy! To download the current issue of our Buyer's Guide, click here! Congratulations Nikki! We live and work in the communities we serve and love to give back in any way we can. One of our associate's exemplary example of giving back was recently recognized by AHEAD (Affordable Housing Education & Development).  Nikki Barrett, Managing Broker of our Littleton office, was recognized with the Fred Griffin Award at the 25th AHEAD Annual Meeting for her years of volunteer work, including rolling up her sleeves at NeighborWorks parties, teaching first-time home buyer classes, and for her systematic giving by donating to AHEAD a portion of her commission on every sale. Well done Nikki, you are a role model! [caption id="attachment_3620" align="aligncenter" width="357"] Mike Claflin and Nikki Barrett[/caption] In closing, if you have questions about the real estate market in your area, please do not hesitate to give us a call. We are here to provide solutions that work for you. You can reach us by phone at any of our offices or on the web at www.peabodysmith.com. Better yet, feel free to stop by any of our offices – we'd love to meet with you to learn how we may assist you.