N.H., Maine Housing Markets Seen as Half-Full
After a tough year in the real estate market, professionals along the New Hampshire Seacoast region say several factors have begun to stabilize and they are optimistic about 2007.
According to the Portsmouth Herald, October represented the low of a year characterized nationally and locally as a “roller-coaster ride” in which home sales contracted and rebounded.
But a resurgence in the final two months, thanks in part to favorable mortgage rates and a steady jobs market, suggests the correction may have passed somewhat unceremoniously.
“Values have fallen, in some cases, to what would have to be described as bargain levels. Interest rates, too, are very, very attractive - at near record lows,” said John Rice, chairman of the Seacoast Board of Realtors.
“While values should continue to slightly decline through 2007 as inventory is absorbed, it is likely that we are near the bottom of this correction.”
Sales of existing homes in the the New England region increased 6 percent to a level of 1.06 million in November, but were 4.5 percent below where they were back in November 2005, according to the National Association of Realtors. The median existing home price in the Northeast was $269,000, down 2.2 percent.
In December, 162 single-family homes went under contract in Rockingham and Strafford counties, an encouraging sign, said Sharon Aldrich of Keller Williams Realty. She said housing affordability is at the core, as rapid appreciation pushed many buyers and scared others out of the market.
“There was quite a large group that were discouraged. People who were not able to buy in the past will be able to in 2007,” she said.
Sales of single-family existing homes in the Maine housing market were down by more than 12 percent from November 2005, with median prices down nearly 4 percent, the Maine Association of Realtors reports. Still, the number of units sold in York County in October-November 2006 showed signs of improvement.
“You can’t keep going up forever,” said Mike Kleist, manager of Century 21 Atlantic Realty in York. “It certainly has slowed down a bit, but it’s hard to tell because it’s typically slow now. Once spring comes, we should know better. I don’t think we’ll have a record year, but consistent.”
Kleist said those who complain about the market now should’ve been around in 1982 or 1990. Those were really slow years, he said.
While the Seacoast is certainly affected by national trends, the quality of life and diversity of the New Hampshire housing market always attract buyers.
The price range of 76 single-family homes for sale in Portsmouth starts at $139,000 and tops out at $9.5 million, while the 84 condominium units range from $125,900 to $1.5 million.
Kleist said the market will flourish again once a compromise is reached between buyers and sellers on the state of the real estate market.
“Sellers need to remember that despite a value decline on paper, in most cases, they will still realize a tidy gain, especially if property has been maintained and updated through the years. Property priced to the market does sell in a timely manner,” he said.
Whether you’re looking for a New Hampshire mortgage or get approved for a Maine mortgage, conditions are ripe for securing a great deal. Take advantage of a buyer’s market and make 2007 the year you achieve your home ownership dreams.