By Andy Smith, Broker/Owner
Real estate is always a topic on the news, as there are so many questions buyers and sellers have in the marketplace. The most common question our agents are asked - "How's the Market?". It is not always a one word, simple answer to this question - there are many facets of the current real estate market. Overall though, we confidently can say, the real estate market is strong.
While many would agree we are in a hybrid form of a recession both nationally and in the global markets, the housing market remains strong as does the job market. As you are aware, interest rates have gone up, but we expect them to cap out by the end of the year at 5.5 to 6%. Home appreciation has continued to rise, although at a much more sustainable rate than we have seen over the last 2 years. We are expecting that prices in our market area will finish 2022 in the 5% to 8% appreciation range, and level out in 2023 in the 3% to 5% range. Real estate has continued to be a proven investment, in fact real estate values have risen in 3 of the last 4 recessions. The only one where values decreased was during the housing bubble of 2007-2009 when supply was much higher than demand, and debt often exceeded value, which is not the case we have now.
This time around, there is not a housing bubble on the horizon. This is due in part to the strict lending practices of the nation's lending institutions and better regulations. Those who own homes have been able to keep current with their mortgage and have gained an incredible amount of home equity as their values have risen. In fact, due to the low housing inventory on the market, the real estate market has not been saturated with homes for sale, and in terms of new building – there is simply not enough new or existing inventory to satisfy the needs of home buyers. As the generation of millennial home buyers enter the real estate market, a generation that is larger than the baby boomers, the need for housing remains strong. New Hampshire, Maine and Vermont continue to be highly desirable destinations.
For sellers, this is still an optimal time if you are considering selling your home or land. Proper pricing is important and that's where working with a proven real estate professional can help you. Our agents can help you determine a compelling price to list your property, they will help you negotiate with buyers and help you understand the possible nuances of the multiple offers you may be presented with. For this journey, our agents are prepared to help guide you into what may be unchartered territory for you. We are here to help.
For Buyers, this also is a good time. Do not put off looking thinking prices will go down, as we do not see that happening. Your choices are getting better as more and more homes are coming on the market. We can introduce great local lenders that have many financing options that can make your dream home a reality!
Please feel free to reach out to us today. Whether you are buying or selling – or both – our team of full-time agents have proven track records to assist you. We welcome the opportunity to guide you in your Journey Home.
About the Author:
Andy is the Broker/Owner of Badger Peabody & Smith Realty and has over 35 years experience in the Real Estate Industry. In 2004 he was designated as a Certified Commercial Investment Member (CCIM), a recognized expert in the disciplines of commercial and investment real estate. He is a founding Member of the NH Commercial Investment Board of Realtors, having served as a Board member, Treasurer, and President. In 2004 he was named the board's Realtor of the Year. Additionally, he is a Trustee for the Society for the Protection of New Hampshire Forests, a past Director of the Northern New England Real Estate Network, is a member of the Littleton Rotary Club and serves on the Board of Directors for The Guaranty Bancorp/Woodsville Guaranty Savings Bank. Andy was awarded the Littleton Area Chamber of Commerce 2007 Business Leader of the Year. In his spare time he can be found on the tennis or squash courts, skiing, or riding one of his motorcycles.