Market Trends

Welcome to the RE/MAX Upper Valley’s market update.

After reviewing the data for the past 6 months and the 10 year sales cycle it looks pretty clear that the market in the Upper Valley has finally stabilized and is back on track, with a more normal growth pattern of about 3% per year. Values have retreated to mid 2003/2004 levels, which coincides with the start of the housing bubble. By looking at the core communities 10 year sales cycle graph attached, you can clearly see the bubble along with a blip in 2010 which represents last year’s 1st time home buyer stimulus credit. Based on this 2011’s YTD numbers it looks like the market repositioned itself back on the same track it was heading down prior to the stimulus plan.

The general perception of both buyers and sellers is still greatly affected by the national news which is, for a change, pretty much reflective of what is actually happening in the overall Upper Valley. Home inventories continue to be very high, currently there is a 2 year supply of single family residential homes and the average day’s it takes to sell those homes has risen to almost 6 months. Compared to 2004 it took about 2.5 months to sell for the same price. One factor for high inventory is sellers over pricing of their homes on average of about 15% over the current market value. Almost every home sold goes through at least one or two price reductions during its time on the market.

Although interest rates are still at historic lows, 4.25% or even better with adjustable rate products, actually being approved for financing is the major hurdle faced by home buyers today. There is a lot, and I mean, a lot of work that a buyer has to do to get financing today. Never before has the buyer and the property been put under a microscope by lenders and regulators trying their best not to repeat the trouble they got into a few years ago. The bottom line is if you have good credit and you wish to purchase a standard home you’ll get a great rate and the process will take about 30 to 45 days. Anything other than that and the process could be a very trying and tiring experience.

The best thing you can do as a buyer is to get pre-qualified by a mortgage professional before you start looking for a home. Ask any RE/MAX Upper Valley agent for a list of qualified mortgage officers who will be happy to get you started on your way to home ownership.

The bottom line is with prices now at a 7 year low and interest rates at historical lows along with a high inventory and a slowly increasing market this fall will definitely be one of the best times to purchase a house in decades.

Thank you.

If you have any questions or would like to speak with one of our agents please give me a call at 603-252-2934 or email Gerry@UvMaxRe.com

If you are considering the sale or purchase of a home please call one of our sales representatives for a no obligation buyer or seller consultation.

Sincerely, Gerry Stark Principal Broker/Co-Owner (603) 298-8900

Click here to view 2011 Sales data.

Gerry Stark, Principal Broker/Co-Owner
RE/MAX Upper Valley Partners
Gerry has been a Realtor for more than 22 years. He is the 2005 Upper Valley Boards “Realtor of the Year” and teaches the Realtors ethics course. He is the 2010 President Elect of the Upper Valley Board of Realtors and is licensed as a real estate Broker in both New Hampshire & Vermont. Designations include the Certified Buyers Representative, a certified mentor for the Buffini & Company, A member of the Lebanon Chamber of Commerce, the NH Better Business Bureau and a NH Notary Public as well as the past Chairman of the Enfield Zoning Board.
 

For a FREE market opinion of your home email freecma@uvmaxre.com or give us a call at 603-298-8900.

RE/MAX Upper Valley Partners

(800) 925-9310