Market Trends
The latest real estate market survey is in and again it’s a mixed bag of good and bad news. I’m very encouraged that the number of sold single family homes in the 22 towns we survey is up 27% from last year during the same time period of 1/1 to 6/30. This is a direct reflection of the tax credit and very low interest rates. While the bad news was that the median sales price for the overall area continued to drop by an additional 6%, it actually is showing an increase in the core area towns of Hanover and Lebanon. This doesn’t mean that we’re going to be back to the glory days of 2005 anytime soon. We’ve got to take into effect the double digit losses we’ve seen over the past 3 years. But, the trend is encouraging and I agree with many of the industry experts that the market will be fully corrected in the latter half of this decade. That news hasn’t reached the great majority of sellers though, many are insisting that they get what paid for their home in 2005 or 2006 and frankly are just pricing themselves out of the market. I hear over and over, sellers saying, well, I’ll just wait for the market to get better; sooner or later someone will make an offer. The truth is if you’re $50,000 thousand or more over priced you’ll most likely never get an offer and then after 6 months your house becomes, in a sense, stale. People see how long it’s been for sale and wonder, what’s wrong with that place?
Sometimes if you’ve got to sell a “short sale” is the way to go, you’ll get out from under the loan and be able to move on. A short sale isn’t as bad a mark on your credit as a foreclosure or bankruptcy and can sometimes be a good option. These are tricky and complicated transaction and should not be attempted without a qualified Realtor who is familiar with the process.
It’s a great time to get a low interest rate and with prices of homes now the lowest they’ve been in years this fall could be the best time yet to purchase. I was quoted 4.25% today from a local bank and I know if you are willing to work at it you could even find a rate below 4%.
Another interesting development is the number of pre-foreclosed homes that are not being listed on the open market. Many of the large banks are stockpiling their homes. I’m currently watching over a dozen homes that are in what the banks call “Property Preservations Mode”. These homes are vacant and just maintained until a future date when the market starts to rebound. They may or may not have been foreclosed on but are being secured and maintained by the banks for future sale.
If you have any questions or would like to speak with one of our agents please give me a call at 603-252-2934 or email
Gerry@UvMaxRe.com
If you are considering the sale or purchase of a home in 2009 please
call one of our sales representatives for a no obligation buyer or
seller consultation.
Gerry Stark, Principal Broker/Co-Owner
RE/MAX Upper Valley Partners
Gerry has been a Realtor for more than 22 years. He is the 2005 Upper
Valley Boards “Realtor of the Year” and teaches the Realtors ethics
course. He is the 2010 President Elect of the Upper Valley Board of
Realtors and is licensed as a real estate Broker in both New Hampshire &
Vermont. Designations include the Certified Buyers Representative, a
certified mentor for the Buffini & Company, A member of the Lebanon
Chamber of Commerce, the NH Better Business Bureau and a NH Notary
Public as well as the past Chairman of the Enfield Zoning Board.
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Archived Market Trends
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