We are in a very opportune buying environment that could be prove to be a great time to find some great deals for the savvy real estate investor.
With the drop in property prices and longer days on the market, homes have become much more affordable than they have been in recent years.
Throw in the sub-prime problem and the rising foreclosures and you have a dream market for a real estate investor looking to pick up a good deal.
Here is a synopsis of what is shaping the market and why this is might be a great time to buy real estate:
Mortgage industry tightening up (sub-prime meltdown)The golden days of creative financing are over and a lot of Americans are finally getting slapped with a cold backhand of reality… or what is turning into the
sub-prime turmoil.
In the heat of the real estate market that was booming in 2004-2005 lenders gave mortgages out like candy, even to people that were taking on debt that they shouldn’t have -- high-risk borrowers with less-than-perfect credit with little or no money for down payments.
These are the people that were getting into sub-prime mortgages and most probably didn’t even fully understand what they were getting themselves into.
In fact, according to bankrate.com, 3 out of every 10 U.S. homeowners have no idea what type of loan they own…
scary.
And guess what?
All that predatory lending from a few years ago is finally catching up to the thousands of homeowners that locked into all those sub-prime and adjustable mortgages that are now maturing.
Lots of foreclosuresThe slow down in the market in conjunction with the sub-prime meltdown (and other factors) has resulted in rising mortgage delinquency and more and more foreclosures that are expected to continue to rise nationwide throughout the year.
In Massachusetts there were
111 foreclosure filings every business day or an increase of
81.97% when comparing the past 12 months to the same period a year earlier (21,644 v. 11,894), according to
ForeclosuresMass.com.
In
New Hampshire, foreclosures are expected to double from last year.
And this is just the beginning. The Center for Responsible Lending, a nonprofit based in
Washington, recently estimated that the approximately 2.2 million subprime loans that were made in the past eight years will end in foreclosure…
scary.
Homes staying on the market longer
The cool down in the market is made the most apparent by the stagnant inventory that is taking longer to sell than previous years.
As properties are spending more Days On the Market there is, generally, further downward pressure placed on home prices.
My prediction: We are surely in a buyer’s market (or I should say a buyer’s market for qualified buyers) and there are lots of great opportunities out there but it won’t last forever.
All else being equal, if interest rates increase as many experts predict, we will soon move into a very neutral environment that will level the playing field, neither in favor of buyers nor sellers. The upside from the Buy will be best realized in the next several months while enough 'deals' still exist.
In addition, although there a lot of deals out there, ‘flipping homes’ and increases in property values will require longer holding periods before most home buyers realize a healthy profit. So don't watch too much tv and get disilllusioned by the idea of quick a sale.
Labels: massachusetts real estate, new hampshire real estate market, real estate market
posted by B. Samii @ 8:51 AM
Here is the January market data for New Hampshire home and condo sales activity.
Condominiums:
The following is data regarding NH condomium sales activity:
NashuaNumber New condos - 56
Number Sold condos - 28
Average Days on Market - 96
Average Listing Price - $215,096
Average Price Sold - $214,066
Manchester
Number New condos - 85
Number Sold condos - 36
Average Days on Market -115
Average Listing Price - $186,245
Average Price Sold - $186,044
Portsmouth
Number New condos - 12
Number Sold condos - 8
Average Days on Market - 136
Average Listing Price - $390,375
Average Price Sold - $379,625
Concord
Number New condos - 11
Number Sold condos - 6
Average Days on Market - 69
Average Listing Price - $126,766
Average Sales Price - $125,116
Single-Family Homes:
The following is data regarding NH single-family home sales activity:
NashuaNumber New homes - 82
Number Sold homes - 24
Average Days on Market - 115
Average Listing Price - $314,660
Average Price Sold - $308,814
ManchesterNumber New homes - 83
Number Sold homes - 36
Average Days on Market - 96
Average Listing Price - $228,214
Average Price Sold - $218,789
PortsmouthNumber New homes - 16
Number Sold homes - 12
Average Days on Market - 86
Average Listing Price - $294,429
Average Price Sold - $284,692
ConcordNumber New homes - 33
Number Sold homes - 17
Average Days on Market - 123
Average Listing Price - $281,400
Average Sales Price - $275,367
Labels: concord real estate, manchester real estate, nashua real estate, new hampshire real estate market, nh condos, nh homes, nh real estate, portsmouth real estate
posted by B. Samii @ 9:13 AM
To empower our customers with some more useful information (and whoever else that likes cutting through real estate data and statistics) we are going to provide a monthly overview of NH market conditions for four select real estate markets. This should provide a good overview and some raw, hard numbers for you real estate junkies! --
Condominiums:
The following is data regarding NH condomium sales activity:
NashuaNumber New condos - 22
Number Sold condos - 27
Average Days on Market - 73
Average Listing Price - $221,969
Average Price Sold - $216,396
ManchesterNumber New condos - 40
Number Sold condos - 36
Average Days on Market -112
Average Listing Price - $148,828
Average Price Sold - $144,810
PortsmouthNumber New condos - 12
Number Sold condos - 9
Average Days on Market - 203
Average Listing Price - $224,978
Average Price Sold - $213,209
ConcordNumber New condos - 12
Number Sold condos - 17
Average Days on Market - 55
Average Listing Price - $139,379
Average Sales Price - $137,418
Single-Family Homes:The following is data regarding NH single-family home sales activity:
NashuaNumber New homes - 40
Number Sold homes - 37
Average Days on Market - 115
Average Listing Price - $285,859
Average Price Sold - $278,705
ManchesterNumber New homes - 36
Number Sold homes - 43
Average Days on Market - 91
Average Listing Price - $269,881
Average Price Sold - $268,033
PortsmouthNumber New homes - 10
Number Sold homes - 11
Average Days on Market - 83
Average Listing Price - $347,473
Average Price Sold - $332,427
ConcordNumber New homes - 27
Number Sold homes - 10
Average Days on Market - 98
Average Listing Price - $270,875
Average Sales Price - $273,123
Labels: concord real estate, manchester real estate, nashua real estate, new hampshire real estate market, nh condos, nh homes, nh real estate, portsmouth real estate
posted by B. Samii @ 10:02 AM
