Hampstead NH ~ 14 month real estate market update

A snap shot of the Hampstead NH real estate market

This is a 14 month history of the Hampstead real estate market. Statistics are from NNEREN

New Hampshire Real Estate Blog

Jay and Monika McGillicuddy, NH REALTORS

Prudential Verani Realty

2 Main Street Hampstead NH

603-327-0246 direct line

603-434-2377 office

Monika cell 603-548-7728

Jay cell 603-548-7685

New Hampshire Real Estate Moving on up….

New Hampshire Real Estate Moving on up…

We certainly ended the year with all indicators showing that the New Hampshire real estate market is moving on up.  That was a very nice thing to see especially after a pretty dismal start to the year. We ended being up 6% over 2008 in residential units sold.

Prices declined 10%

While the median sale price continued to decline with a 10% decrease over last years median price of $235,000, when comparing Dec 08 to Dec 09 there was only a 1.9 percent difference. Hopefully that trend will continue.  While no one has a crystal ball it does seem as if we’re in the middle of a comeback. Thinking of buying real estate in southern New Hampshire, now is not the time to sit on the fence. Give us a call we’d love to help you find that prefect dream home.

The New Hampshire Association of REALTORS publishes a Market Trend report on a quarterly basis, which is reprinted below with permission.

Congratulations for doing so well in 2009; now for 2010

-By Peter Francese

New Hampshire REALTORS® have every reason to be extremely proud that they not only survived 2009, but in fact sold more homes than in 2008. That was a huge achievement considering the near-record depth of the Great Recession.

During 2009, the bad news just kept coming. New Hampshire’s unemployment rate peaked at 7.2 percent in September – the highest it had been in almost 17 years. There were over 3,400 home foreclosures in 2009, almost as many as the nearly 3,600 in 2008. As if that were not enough, total statewide employment fell by over 15,000 jobs between November 2008 and November 2009.

But that was so last year. What about 2010? Well, the consensus of most economists is that the recovery from this extraordinary recession will get underway this year, although they also predict that the recovery will be slow and that it may take two years for our state to get back to some semblance of normal, whatever that is.

Considering how well home sales went when the recession was in full swing, there is no reason why this year should not be one of recovery. The state unemployment rate is below 7 percent (compared to the 10 percent nationally) and dropping. And new unemployment claims are also falling.

But as we know now, traditional employment is only one indicator of housing demand in New Hampshire. In addition to over 625,000 people with jobs, we also have in excess of 100,000 more who are self-employed. They normally can’t collect an unemployment check, so they are not included in the labor stats. But they’re a critical part of the New Hampshire economy and will play a key role in this recovery.

And let’s not forget the Philadelphia Federal Reserve’s index of state economic activity, which has been rising in New Hampshire since last September. It’s now over 193, still fourth highest in the nation and well above the 154 average for the other New England states.

Another New Hampshire advantage is that we have much healthier local banks than other states. None have been closed by the FDIC, and none are even on their watch list. That’s way better than in the early 1990s and bodes well for home sales in 2010.

All signs point to a reasonably robust recovery this year and next. But our state still has, shall we say, “issues.” We are now the fourth oldest state in terms of median age, and aging too rapidly for us to be complacent about future labor force growth.

One often overlooked aspect of the New Hampshire, however, is our residents’ very high level of educational attainment. Our state is among the nation’s top 10 in the percent of adults with a bachelor’s or graduate degree. Which of course explains why we are also in the top 10 in terms of median household and family income.

Well-educated workers are far more likely to work after age 65. New Hampshire’s Baby Boomers, who will be turning 65 at the rate of approximately 20,000 a year over this decade, are likely to follow that pattern, and many will continue working. That will do a lot to boost future economic growth, as well as second home sales.

Table I below shows that home sales grew in nine of our 10 counties between 2008 and 2009, but that sale price was lower in all 10. Median sale price did rise slightly statewide between November and December, and increased 10 percent for the nearly 2,400 sales in Rockingham County.

Condominium sales, however, did not increase year-over-year statewide, and their sale price was lower almost everywhere. Statewide residential median sale prices were only about 28 percent higher than condo median sale prices, and in three counties condominiums prices were actually higher. This suggests that the recovery in residential sale prices is likely to occur faster than that for condominiums.

Congratulations again for 2009, and may 2010 be even better.

Table I: Residential home sales for 2009 compared to 2008

County	Units sold 2009	% change 2008-09	Median price 2009	% change 2008-09
Belknap	634	6%	$175,345	-20%
Carroll	714	10%	$185,000	-10%
Cheshire	598	-5%	$167,000	-7%
Coos	344	14%	$75,000	-25%
Grafton	697	7%	$169,000	-13%
Hillsborough	2,947	7%	$229,900	-7%
Merrimack	1,162	9%	$198,500	-12%
Rockingham	2,399	4%	$257,900	-10%
Strafford	965	8%	$195,000	-11%
Sullivan	372	3%	$149,750	-13%
Statewide	10,832	6%	$212,000	-10%

Table 2: Condominium sales for 2009 compared to 2008

County	Units sold 2009	% change 2008-09	Median price 2009	% change 2008-09
Belknap	154	-1%	$150,000	-10%
Carroll	123	-6%	$160,000	-10%
Cheshire	50	28%	$138,700	-22%
Coos	12	100%	$312,500	34%
Grafton	278	14%	$185,750	-9%
Hillsborough	992	7%	$159,950	-10%
Merrimack	181	-20%	$158,000	-9%
Rockingham	794	-4%	$177,700	-9%
Strafford	135	-19%	$150,000	-13%
Sullivan	29	-6%	$252,500	3%
Statewide	2,748	0%	$165,000	-8%



New Hampshire Real Estate Blog

Jay and Monika McGillicuddy

Prudential Verani Realty

2 Main Street Hampstead NH

603-327-0246 direct line

603-434-2377 office

New Hampshire Real Estate Stabilizing

Home prices in New Hampshire are stabilizing and will likely begin to increase in 2010

Peter Francese says in the latest Market Trends report that he prepares for the New Hampshire Association of REALTORS that the “home prices in New Hampshire are stabilizing and will likely begin to increase in 2010.”  The general feeling in the field is that he is right. Agents are feeling optimistic that we are indeed starting to climb out of this recession and that better days are ahead. I wish I had a crystal ball, don’t we all, but it sure feels like we’re heading in the right direction.

Below reprinted with permission from the New Hampshire Association of REALTORS is Peter’s market trend report… I’d love to know what you think. Comments are always welcome.

The Great Recession is over,
but it will take some time to feel over

—By Peter Francese

According to economists at Moody’s Analytics, what is now being referred to as the Great Recession is technically over.  However, the damage from this economic downturn was severe enough that it will take quite a few months until it feels really over to us ordinary people.

There’s a reason this recession has felt so bad:  The economists say it has lasted twice as long and was twice as deep as the average of the past 10 recessions the nation has experienced since 1948.  The New Hampshire economist Dennis Delay, speaking at a recent New England Economic Partnership conference, said that the recession won’t feel like it is over “until unemployment stops climbing and job growth returns.”

New Hampshire’s unemployment rate, which is now 7.2 percent (well below the national average of 10.2 percent) is not forecasted to rise above 7.8 percent before starting to fall sometime next year.  This bodes well for the recovery of New Hampshire’s residential real estate values, which may have already begun to rise.

During the first five months of this year, for example, residential home sales were below last year.  But year-over-year the number of homes sold has risen in four out of the past five months (see Table I below).  Overall, for the first 10 months of 2009 home sales edged up 0.3 percent over the same period last year.

Median home prices statewide were still about 7 percent below October of 2008, but the difference is narrowing from monthly numbers that earlier this year ranged between 10 and 20 percent below 2008.  This trend indicates that home prices in New Hampshire are stabilizing and will likely begin to increase in 2010.

The expanded home buyer tax credits will almost certainly have a positive effect on home sales and values in the next several months.  Also, as home prices stabilize, that will reduce any perceived risk on the part of potential home buyers and encourage lenders to finance more purchases.

New Hampshire has been considerably more fortunate with regard to home prices than many other states.  Median home prices statewide are expected to bottom out in 2010 at between 20 and 25 percent below their 2005 peak.  Given the worst recession in 60 years, that’s really something to be pleased about.  Several other states have seen home prices fall 50 percent or more from their peak in 2005.

Every REALTOR® in our state, as well as every lender or potential home buyer, should know this: The recession is over, but the speed of recovery here depends in large part on the real New Hampshire advantage.  It has certainly mitigated this recession’s bad effects and will be extremely important to our recovery.

Assuming it will be maintained, real estate values will recover more quickly and more solidly than anywhere else in this region, and perhaps most other places in the nation.

Table I shows that residential home sales are likely to be about the same as last year, just above 10,000 units, and at a median sale price that will be within 10 percent of 2008.

Table I shows residential home sales and median sale prices for first 10 months of 2009.

2009
Units sold    % change 2008-09    Median sale price    % change 2008-09
Jan           453                     -15%                           $200,000                        -17%
Feb          505                      -13%                          $184,900                         -20%
Mar         703                         9%                          $200,000                         -14%
Apr          739                      -11%                          $204,900                          -15%
May         881                       -6%                          $210,000                          -13%
Jun        1,151                         1%                          $225,000                          -12%
Jul         1,169                        6%                          $220,000                         -10%
Aug       1,096                        4%                         $222,000                            -7%
Sep           979                      -3%                          $214,900                            -8%
Oct        1,083                       8%                          $210,000                            -7%
YTD      8,857                    0.3%                         $210,000                             -7%

Table II shows that in October, residential unit sales rose above last year’s for seven of the state’s 10 counties, and median sale price increased 9 percent in Belknap County, where nearly one-third of dwelling units are second homes.  Condominium sales were also strong in October, when unit sales jumped 23 percent above October of last year at a median sale price just $100 below last year’s $170,000.

Units sold    % change 2008-09    Median sale price    % change 2008-09
Belknap                 66                       6%                             $192,875                        9%
Carroll                    79                     -2%                             $190,000                    -12%
Cheshire                52                      -2%                            $160,450                       -4%
Coos                       41                        8%                              $89,000                     -11%
Grafton                 76                       19%                             $174,950                       -6%
Hillsborough     283                       10%                            $224,000                      -9%
Merrimack          125                      18%                             $189,000                     -12%
Rockingham       230                       9%                             $255,000                       -4%
Strafford              105                     22%                              $194,900                     -10%
Sullivan                 26                    -40%                              $150,000                      -3%
Statewide          1,083                      8%                             $210,000                        -7%

Source: NNEREN

$8,000 tax credit ~ extended and expanded

Home Ownership

$8,000 tax credit ~ extended and expanded

Great news for home buyers and sellers alike.  The $8,000 tax credit for first time home buyers has been extended to April 30 2010 and a new $6,500 tax credit for homeowners who have used the home being sold as their principal residence consecutively for 5 of the previous 8 years.

This will bust open up the real estate market!

This will bust open the real estate market as it will encourage the move up buyer to take the leap! As long as a binding purchase contract is written by April 30 2010 the purchaser has until July 1 2010 to actually close on the property.

Income Limits raised!

The income limits have been raised as well which will include more people:

$125,000 – single
$225,000 – married

Limitation on cost of the home being purchased is set to $800,000 and that sure can buy a lot of home.

Prices-Rates and Homes – all the ingredients are there

Prices are fantastic and interest rates are incredible couple that along with the tax credits and buying a Southern New Hampshire home becomes a must do. All the ingredients are there and now all you have to so is pick up the phone and call 603-548-7728!

Click the link for a comparison chart of the old tax credit compared to the new tax credit

Call your southern NH  REALTOR

Call your southern NH  REALTOR, me of course, and set up an appointment to discuss how the $8,000 tax credit can impact you or learn how it can benefit you to sell your southern NH home.

Jay and Monika McGillicuddy, NH REALTORS

603-548-7728 or 603-548-7685

New Hampshire Real Estate Blog

Jay and Monika McGillicuddy

Prudential Verani Realty

2 Main Street Hampstead NH

603-327-0246 direct line

603-434-2377 office

NH Real Estate ~ Cloudy Glass but more than Half Full

NH Real Estate ~ Cloudy Glass but more than Half Full

Over all the State wide numbers show an improvement and Rockingham County itself had a slight increase of 1.8 % in unit sales compared to September 2008 which was 222 and September 2009 at 226. It may be a slight increase but I’ll take any increase I can get.  The third quarter showed gains in Rockingham County  with 694 units sold in 2008  to 732  in 2009 which is a 5% increase in unit sales.  Prices however are still down with the median price of $285,000 in 2008 to $260,000 in 2009 … a  drop of 9%

$8,000 tax incentive for first time buyers is rapidly ticking down

The clock is rapidly ticking as far as the $8,000 tax incentive for first time buyers.  If you’re a 1st time home buyer wanting to take advantage of the tax credit you need to act fast. Give me a call and we can discuss your real estate needs.

The following press release from the New Hampshire Association of REALTORS explains what New Hampshire’s real estate market is doing.

New Hampshire home sales show third-quarter increase

For the first time since 2004, New Hampshire has experienced a quarterly increase in home sales.

Sales data released recently by the New Hampshire Association of REALTORS® (NHAR) showed that the number of residential unit sales for the third quarter 2009 was ahead by 3 percent over sales from the third quarter 2008 – from 3,164 in 2008 to 3,273 in 2009 – following 16 consecutive quarterly declines dating back to the fourth quarter 2004.

The third quarter increase comes despite a slightly lagging September, which showed a monthly decline of 3 percent compared to September 2008, following three consecutive monthly gains in June, July and August.

“As we’ve said before, this seems to be a market that’s continuing to figure itself out,” said NHAR President Paul Sargeant, a 20-year veteran of the real estate business and a broker with Better Homes and Gardens The Masiello Group in Bedford.  “There’s a long way to go, but we seem to be taking small steps toward the turnaround that we’re hoping for.  A positive third quarter is another one of those small steps.”

The good news held up in most local markets as well, as seven of New Hampshire’s 10 counties saw increased sales from the third quarter 2008 to the third quarter 2009, including double-digit gains in Carroll (16 percent), Strafford (14 percent), Coos (11 percent) and Sullivan (10 percent) counties.

As a result of the positive statewide sales numbers, inventory continued to stay relatively low, having dropped from 22 month’s supply at the end of January to below 12 month’s supply at the end of September.  Month’s supply is calculated by dividing the existing inventory by the number of sales in the previous month.  A balanced market is considered to be roughly 7-8 month’s supply, with anything over that a “buyers’ market” and below a “sellers’ market.”

And there was another positive sign nationally, as the National Association of REALTORS® pending home sales index – a forward-looking indicator based on signed contracts – showed a seventh consecutive month of gains in August, a pattern not seen since the index began in 2001.

Meanwhile, 2009 prices statewide continued to lag behind the prices of last year, with the third quarter 2009 median price down 8 percent – to $220,000 – from the $238,490 median price of third quarter 2008.  Year to date, the median price is down 11 percent, from $240,000 in 2008 to $214,000 this year.

Sargeant continued to stress his belief that the current trend of increased sales, and decreased inventory, is the first sign of a price recovery as the principles of supply and demand play out.

He reiterated that a lower median price is a positive thing insofar as that affordability, along with low interest rates and the $8,000 tax credit for those purchasing a home for the first time in at least three years, increases the opportunity for families to own a home.

And Peter Francese of Exeter, the Director of Demographic Forecasting for the New England Economic Partnership and a columnist for NHAR, believes that in addition to those buyer incentives, other positive factors include a low home price-to-income ratio and the fact that young, first-time home buyers are increasing for the first time in many years.

“The glass is cloudy, but more than half full,” Francese said.  “With its diverse economy, New Hampshire is better positioned to survive this period and recover sooner from this recession than other New England states, or most of the other states in the nation.”

Sargeant said he remains hopeful that evidence of the New Hampshire housing market recovery will become even more clear as the year progresses.

“With each passing month, the positive signs seem less like a fluke and more like a trend,” he said. “They may be baby steps, but we’re moving in the right direction.”  – New Hampshire Association of REALTORS

Jay and Monika McGillicuddy, NH REALTORS
603-548-7728 or 603-548-7685

New Hampshire Real Estate Blog

Jay and Monika McGillicuddy

Prudential Verani Realty

2 Main Street Hampstead NH

603-327-0246 direct line

603-434-2377 office

NH Real Estate Market moving upward

NH Real Estate Market on the Rise

NH Real Estate market is moving upward… even the mainstream press is now starting to report that the bottom of the housing market is here. Take my advice, if you’re looking to buy a home do so now. It would be nice if we all had a crystal ball and could know for sure when the moment arrives but the reality is we usually don’t know we’ve peaked or hit bottom till things start to change. We’re seeing that change now.  The NH real estate market is on the Rise….don’t kick yourself in the butt for missing this opportunity and the potential $8,000 tax credit. Need an agent? I’d love to help you… just give me a call or text me.Monika McGillicuddy, Southern NH REALTOR 603-548-7728.

Robert Allen states….

“What’s changed from a few months ago is that inventory has begun shrinking, bidding wars have started across the country, and prices are finally starting to rise in many markets. I’m encouraging all my clients to start looking for properties again,”

Check out the entire article where Robert Allen Calls the Bottom…   Robert Allen Calls the Bottom

Jay and Monika McGillicuddy, NH REALTORS

New Hampshire Real Estate Blog

Jay and Monika McGillicuddy

Prudential Verani Realty

2 Main Street Hampstead NH

603-327-0246 direct line

603-434-2377 office

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