He Who Snoozes Loses…
The Reality of New Hampshire’s Housing Market
(Chart and statistics courtesy of the New Hampshire Association of REALTORS)
Year end market reports show that the total average units sold are down 18% compared to 2005 and the average price down 1 percent from 2005.
Looking at the average prices being down only 1% does not seem that bad but take a good look at the total sales…down a whopping 18%!
No matter how you look at it 2006 presented us with a dramatic downward shift after many years of strong gains and growth. It simply was not a very good year if you were a consumer looking to flip property, or a new REALTOR just starting out. Buyers on the other had had plenty of opportunity but they hesitated…waiting and watching to see if housing prices would drop some more.
From my perspective as a real estate agent, 2006 was a difficult time for real estate.
Keeping it in perspective I know many people who took their home off the market this past fall and winter. People usually hate to be disrupted during the busy holiday season so they take their homes off the market during that time frame. Might that account for sales being down? Sure…maybe some of it but certainly not all of it. Most of it was due to unrealistic pricing.
REALTORS are now making pricing recommendations based on “on market” competition...instead of the traditionally accepted practice of using sold comparables...which means much more realistically priced homes. Jay and I have been using "on market" comps for about 8 months now but in general sellers have been slow to accept that as a solid indicator of market value.
Now, sellers are listening to their REALTOR and pricing competitively and buyers are now shifting out of procrastination mode and enjoying the market corrections as they realize this means greater opportunities. Maybe we’re due for an early spring market…it’s starting to get busy in Southern NH.
| | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 |
| Total Units Sold | 20,008 | 20,709 | 21,808 | 23,577 | 23,744 | 19,360 |
| Change | -- | 3.5% | 5.3% | 8.1% | 0.7% | (18%) |
| Average Sale Price | $187,353 | $211,569 | $230,947 | $253,879 | $264,517 | $266,567 |
| Change | -- | 13% | 9% | 10% | 5% | 1% |
Jay and Monika McGillicuddy
Prudential Verani Realty
Hampstead NH
603-548-7728
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