The Economy of New Hampshire Real Estate is on track for real equity gains because prices are so low but the recovery of the "The Great Recession" is slow.
This is good news for home buyers and especially first time home buyers of New Hampshire Real Estate. The painfully slow recovery has resulted in a leveling of home prices. Looking at home sales data for the first quater of the last four years, we are seeing average sales prices in Strafford County at $230,037 in Q1 2008, $176,526 in Q1 2009, $194,711 for Q1 2010, and $188,199 for Q1 2011.
Here's the bad news:
Here's the bad news:Interest rates for a 30 year fixed rate mortgage were at the lowest in October of 2010 at 4.23%, 4.69% in December of 2010, 4.76% in January, and today's rate is 4.84%. If we hold a monthly mortgage payment steady at $1,000, for every 1/4% interest increase we observe an $8,000 drop in purchase power.
Solution? Donald Trump was asked by the Wall Street Journal "What is the quickest way to build real wealth?". The Don's answer: "Buy Real Estate Now!" Buyers should understand the slow economic recovery has presented them with an opportunity of a lifetime. New Hampshire Real Estate has good inventory, reasonable home prices, and low interest rates giving buyers more purchase power. That power erodes with interest rates on the rise.
BUY REAL ESTATE NOW! Waiting will only lessen your purchase power.
About the Author: Marty Patrizi is a Realtor with Virtual Homes, Inc. Marty has been buying, selling, building, and renovating properties since 1988 and he can help you acheive your New Hampshire real estate objectives efficiently. Marty can be reached at 603-781-4099 or by email firstname.lastname@example.org.
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