The State of the Nation`s Housing 2009 – Harvard University

The Joint Center for Housing Studies at Harvard University just released the `The State of the Nation`s Housing 2009.`  If you enjoy facts, figures, statistics and charts galore like I do, this 44 page doozy is a great source of information!  They do not paint a very pretty picture of the housing market, but I think most of us would have been mighty surprised if they had found differently.

If you are so inclined, the  entire report can be found here. Otherwise, I have summarized some of the more important points for you.

THE MARKET:

• New home sales have dropped about 60% from 2005 to 2008

• Existing single-family home sales are at the lowest level since 1997.  In April of 2008 there were 4.85 million sales, while in April of 2009 there were 4.68 million.

• There were 81,900 manufactured housing units shipped, the lowest number since 1959 when record keeping began.

• Homeowner vacancy rate hit an all time high of 2.7 percent.  Homes built since 2000 had a vacancy rate of 9.7 percent.

FORECLOSURES:

• 3.9 percent of one- to four-family loans was in foreclosure.  8.8 percent were at least 60 days past due, which means that they are well on their way to foreclosure.

• 3.2 million homeowners entered foreclosure in 2007 and 2008, and 600,000 entered foreclosure in just the first quarter of 2009.

• 14 million households were upside-down in their mortgages in March of 2009.

• Foreclosures accounted for 30 percent of existing home sales in the 4th quarter of 2008 and short sales accounted for an additional 15 percent.

• 46 percent of the national total of foreclosures are in California, Arizona, Nevada and Florida.

• Of the loan modifications that lowered payments by 10 percent and more, 1/5 were at least 60 days delinquent within 60 days.

FINANCING:

• 74 percent of the loans originated in 2008 were guaranteed by a federal agency, Fannie Mae, or Freddie Mac.

• FHA and VA originated 7 percent of loans in the fourth quarter of 2007, and 34 percent of the loans in the fourth quarter of 2008.

• A household that could have qualified for a $482,000 loan in 2005 could only be approved for $277,000 now.

HOME AFFORDABILITY:

• The number of households that pay more than 1/2 of their income to housing jumped from 13.8 million in 2001 to 17.9 million in 2007.

• Nearly 1/2 of working age households with incomes 1 to 2 times the federal minimum wage spent more than 1/2 their incomes on housing.

• NO household earning minimum wage can afford a modest two bedroom apartment anywhere in the United States.

OTHER GOODIES:

• If every home was as energy efficient as homes built since 2000 have been, residential energy consumption would drop 22 percent!

• Between 2001 and 2007, $874 billion of home equity was cashed out to pay off non-mortgage debt.

WHAT DOES THAT MEAN FOR US IN NEW HAMPSHIRE?

Housing is a LOCAL phenomenon.  Here in New Hampshire most of us have been lucky enough to escape the brunt of the housing downturn.  Is it the opportune market to sell in? No, not really. Is is still a great time to buy? Yes, of course!

The market will return. We should feel blessed that did not see the downturn that California and Florida had.  I am certain that next year`s Housing Report will be a bit more uplifting!

May 2009 – The New Hampshire Real Estate Market

The NNEREN May Stats are out! Time for the monthly review of New Hampshire Real Estate stats!

Quick Stats

As usual…. lots o` active listings in Carroll County.  Pending sales are up from last month nearly 25%, though! Sales are down just a bit, from 68 to 57.

Average Sales Price

The average sales price has gone up! Still a bit off of last year, but up is good. Up is very good.

Average Days on Market

The Average Days on Market has been up and down as of late.  We are currently at 211 days which is a bit higher than we would like to see! Hopefully we can see this number drop as we come into the summer selling season.

Absorption Rate

The almighty absorption rate… As a whole, New Hampshire had a significant drop over last month, going from approximately 24 months worth of inventory on the market to 18.  That is definitely headed in the right direction!  Carroll and Coos Counties currently have the highest rates, at 28 and 27 months, respectively.   Hillsborough County is down to 14 months!

Absorption Rate over Time

All in all… not too shabby! Properties are starting to go under contract and sell, and more higher priced homes are selling as well.  Price it right, and it can be done!

Four FREE Quick Pick-Me-Ups for your Home

We have all seen those shows, the ones where the designer swoops into a Seller`s home and magically transforms it into the 1980`s mis-matched grab-bag of a house that it was to a super stylish, must have, sell-in-three-days masterpiece.

Well, unless you are a superstar designer or can afford to hire one, that is probably not going to happen.
There ARE things that you can do on a budget, though, that will make a huge impact on the buyers.

1) Wash your windows. You have probably heard this one before.  I mean washing the inside and the outside, too.  I personally wash the exterior of my windows once a year, in the spring, when I get some strange reaction to the pollen in the air and I actually want to clean. But do you know what? My house looks fabulous with sparkling windows!

2) Wash your molding.All your doorframes, window frames, floor molding, chair molding should be shining. Same goes for the doors themselves. You would be amazed at how finger prints can dirty the area around a doorknob.  This is grime that you would not notice building up, but you will notice as you clean! Although the buyer may not consciously notice whether the doors and moldings have been scrubbed, it will add to the overall feel of the house. Trust me!  Better yet, if you have white or painted moldings, give them a fresh coat.  Not nearly as expensive or time consuming as repainting an entire room, but you wont believe the difference it can make!

3) De-clutter! Another item you always hear about…it is true! Your grandmother`s cookie jar collection might look fabulous to you sitting on top of the counter, but a buyer would rather see a nice open workspace (or, I suppose, space for thier grandmother`s cookie jar collection).  I personally think that pictures on the wall are fine, but floor to ceiling family history mosaics might need to be reduced.

4) Clean those closets.You have been meaning to anyway, I know you have. If the buyer can not SEE the back of the closet, how are they supposed to know how big it is? Take this opportunity to thrown out the junk, donate items to Goodwill or your favorite charity, or make a couple bucks at a yard sale or on eBay!