DOVER — Real estate professionals are cautiously optimistic following a report stating residential homes sales were up slightly in 2011 from 2010.
New Hampshire recorded a 2 percent increase in home sales in 2011, while the median price of those homes fell by 6 percent, according to data released by the New Hampshire Association of Realtors (NHAR).
There were 10,714 residential unit sales in 2011, following 10,529 sales in 2010. The year-over-year increase was, in part, fueled by an 8 percent jump in December 2011 (923 sales), compared to 2010 (855).
In local markets, December unit sales increased in eight of the state's 10 counties, including an 8.5 percent jump in Hillsborough County, the state's largest.
Pamela Vatistas, president of the Strafford County Board of Realtors, said the number of home sales appears to be leveling off.
"It's too early to say 'recovery,' but we're starting to see stabilization," she said. "Hopefully things will start to turn around. We're hoping the market will perk up a little bit."
Vatistas added the median price of a home in the county dropped to $121,000, down from $137,450 the year previous. Some of that drop, she said, can be attributed to foreclosures and "short sales," meaning the proceeds from selling the property will fall short of the balance of debts secured by liens against the property.
The median price of New Hampshire residential home sales, meanwhile, dropped from $215,000 in 2010 to 201,700 in 2011. Median price fell in all but three counties from 2010 to 2011, Cheshire (22 percent increase), Belknap (22 percent) and Coos (4 percent).
NHAR President John Rice, an agent with Tate & Foss Sotheby's International in Portsmouth, said the number of homes currently on the market means the home buyer is still at an advantage.
The standard for evaluating inventory is "months supply," meaning the length of time it would take to sell off the current inventory based on the number of sales in the prior month. Typically, six to eight months is considered a balanced market, while less than that constitutes a sellers' market and more is indicative of a buyers' market.
There is currently an 11-month supply of housing inventory in New Hampshire.
"It's been as high as 21 months supply within the last two years," Rice said. "We're generally trending in the right direction, but we still have a gap between where we are and a balanced market. It's the old law of supply and demand. The buyer is out there and has multiple choices and naturally the buyer is going to choose the best deal."
Following the best January in sales on the Seacoast in the last three years, both Rice and Vatistas are looking toward an improvement in the market in the coming spring.
Rice said while the current market does not bode well for appreciation, real estate agents are seeing healthy demand and supply.
"It's too early to say that we're out of the woods," said Rice. "But there is demand and interest rates are almost nonexistent. If your employment situation is solid, or as solid as it can be in the current environment, now is a great time to buy. I do see a healthy demand. People are buying and selling."
Source: http://www.fosters.com/apps/pbcs.dll/article?AID=/20120213/GJNEWS_01/702139958/-1/FOSNEWS
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