The New Hampshire real estate market activity in 2009 was most active in the entry level as first time homebuyers were taking advantage of the $8000 tax credit. In addition, the favorable interest rates and more affordable homes contributed to this segment of the market. Foreclosures had a major effect on units sold and average selling prices.
The relocation, move-up and downsizing buyers remain on the sidelines as declining values have had a major impact. New construction is flat in most areas as builders can't compete with the lower values in the resale market. The overall market will not improve until these segments of the market become active. The big question is - have we seen the bottom on a statewide level? It is important to remember that real estate is local and each community must be analyzed separately for the market values.
NH Single Family Homes
The number of NH homes sold in 2009 increased 6% over 2008 however the average selling price declined further to $244,658. The 135 days-on-market and 95% sales price to list ratios were consistent with 2008 numbers.
NH condominium values declined sharply in 2009 (-10.3%) which was primarily due the availability of mortgage options. Most buyers that bought homes in 2009 purchased with low down payments (high ratio loans). The FHA, USDA and VA are the primary sources for these mortgages. There are many condominiums that do not qualify for these loans due to investor/ownership ratios, under capitalized condo associations and lack of pre-approval. The volume of NH foreclosures in the condo market was also high which contributes to declining values.
Information reported was obtained from the NH MLS system (NNEREN) and is not guaranteed to be accurate.