June 2009 – The New Hampshire Real Estate Market

Well, it is officially summer! It will be very interesting to see what the summer real estate market will have in store for us.

Quick Stats:

As usual these days, there are plenty of active listings to go around.  Both Carroll and Belknap active listings are up about 7% over last month, but that is to be expected with new listings coming on for the summer.  Carroll County had a relatively strong month with Pendings increasing 7% and closings increasing 35% (woot, woot!!), while Belknap did not do quite as well with Pendings down 15% and closings down 10%.   Come on Belknap, stay with us!

Average Sales Price:

The Average Sales Price in Carroll County is down to $169,900. It was $179,000 the prior month and $200,500 this time last year. Average Days on Market:

This year Carroll County is quite sporadic with regards to the average time on the market. As you can see it has been quite up and down for the past few months. This month`s downward trend is a good sign… let`s hope it continues!

Absorption Rate:

And…the ever important absorption rate. Carroll and Coos still have the highest rates with 29.5 and 28.6 months of inventory on the market, respectively.  Hillsborough County once again has the lowest rate with 14.2 months.

The rates are up pretty much across the board.  I would like to think that it is because of the influx of new spring/summer listings. We shall see!

Statistics Copyright 2009 Northern New England Real Estate Network, Inc. The reproduction of these statistics is done with the permission of NNEREN. The statistics referenced herein are based solely upon listings submitted to the multiple listing service database of NNEREN and do not include all properties sold and marketed for sale. ALL INFORMATION DEEMED RELIABLE BUT NOT GUARANTEED. Any analysis or commentary related to these statistics is that of the commentator, and not that of NNEREN.

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!

The Pine Barrens – A Unique NH Landscape

When you think of New Hampshire landscapes, most people think of the rugged mountains of the Presidential Range, the rocky shoreline of the Seacoast, or the peaceful beauty of Lake Winnipesaukee.  When thinking of New Hampshire, though, it is important not to forget the unique landscape of the Pine Barrens.

Stretching through over 2,200 acres in Madison, Tamworth, Ossipee and Freedom, the Ossipee Pine Barrens are a unique ecosystem, the last of its kind in New Hampshire. There used to be a large tract near Concord, but that area has shrunk to a mere 450 acres.  Thankfully, these areas are now carefully protected by The Nature Conservancy.

What are the Pine Barrens, anyway?

The Pine Barrens were originally formed by melting glaciers pouring down water filled with sandy soils into a huge valley. When the water drained away, the sandy soil remained. It is interesting to think that parts of Ossipee, Tamworth, Madison and Freedom used to be one big lake!

Pine Barrens are made up of mostly Pitch Pine, Scrub Oak, and wild blueberries.  It is a unique appearance, with the pine stretching tall and narrow, the scrub oak growing only five or six feet tall, and the haze of blueberries at ground level.

In Colonial days, these areas were deemed `barren` by the settlers as the sandy, acidic soil is not ideal for crops.  The pitch pine was used, however, as pitch and caulking for British ships and boiled down into turpentine for medicinal purposes.  The white birch found in surrounding areas was used for British shipbuilding (think of the names of local ski mountain`King Pine` and local school `Kingswood`), and Route 16 was the `mast road.`  Unlike most old New England roads, Route 16 was built as straight as possible, and did not go through the center of any towns until it reached Portsmouth. This was to make the difficult task of transporting the long trees a bit easier.

Why are the Pine Barrens so important?

» The Pine Barrens are a filter for the Ossipee Aquifer that lies beneath them. The Ossipee Aquifer is the larget stratified drift aquifer in New Hampshire, and supplies a constant supply of drinking water to nearly everyone in the area.  The natural filter is a huge concern, as the Aquifer is replenished by surface water.  Local wells only need to drill down through about 30 feet of sand to reach the water.  Anything that is on the surface, any pesticide sprayed on a lawn, any soap from a car being washed, is going to filter down to the water supply very quickly.

» The Pine Barrens are home to 17 rare moths and butterflies, and countless other songbirds and animals.  The Karner Blue Butterfly, the official butterfly of the State of New Hampshire, is an endangered species. It thrives in the Pine Barrens, though, and just recently there were hundreds released into the Barrens in Concord.

How do we protect the Pine Barrens?

Believe it or not, the way to preserve the Pine Barrens is by burning them! Over the years there had been fires every 25- 50 years, until the areas around them became populated and fires were put out soon after they started. Because the soil is so dry and sandy, decomposition of leaves and twigs takes longer than in your average forest setting.  This causes this matter to build up, which is prime food for fire.

Pitch Pine has thick, fire resistant bark, and it`s cones will open and drop seeds when exposed to fire.   Scrub oak has roots that go very deep, making it easy to regrow after a fire.   The low growing blueberries come back stronger after fire, as well.   The Nature Conservancy did a controlled burn of the Pine Barrens in 2007 to get rid of the buildup of matter on the forest floor and to keep out invading species.  They are currently working on a fire buffer along Route 41 in Madison.

There are wonderful trails off of Route 41 and from Camp Calumet that lead you through the heart of the Pine Barrens, and it is absolutely worth a trip, especially in late summer when the blueberries are out! Take a stroll and enjoy the unique landscape, listen for a whip-poor-whil, and keep an eye out for the Karner Blue Butterfly!

Thanks to The Nature Conservancy and New Hampshire Public Radio for the great history of the Pine Barrens!

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