Lakes Region of NH Real Estate Market Report – 11/20/08
There were 71 residential sales in the month of October in the towns listed below compared to 73 homes sold last October. Not too bad! The average sales price was $290,420 which was down significantly from the $419,747 average last October. The median sales price was also down to $189,900 compared to $262,000. These drops, however, are a result of what sold and in what price ranges rather than just a dramatic drop in home prices. There were only two home sales exceeding the $1 million mark this October compared to 5 last October. And a huge 55% of the sales last month were below $200,000 compared to 22% last October. I think it is good news that there is a lot of really affordable housing out there and it is being purchased.
We keep hearing about huge, almost inconceivable, numbers floating around with regard to bail outs, deficits, and even home sales. We have a $10 trillion federal deficit and a $700 billion bailout package for financial institutions with more to surely follow for the auto industry. Freddie Mac says that mortgage originations in 2009 are expected to shrink by 8% to $1.65 trillion and rebound to $1.82 trillion in 2010. FHA and VA backed loans are expected to increase from $286 billion this year to $340 billion next year which reflects how popular these types of loans have become. Freddie also expects that total homes sales will increase from 4.86 million sales this year to 5 million sales in 2009. But that number is well off the 7.46 million homes sold in 2005.
To put these number in perspective, if there were such a thing as a $1 million bill, then $1 trillion is equal to one million of those million dollar bills! A billion is a mere thousand of those million bills. It is hard to fathom these numbers, but it does seem to me that even though mortgage originations are projected to fall to just $1.65 trillion in 2009 that that is still a really huge amount of money and a lot of loans! And while a projected 5 million homes to be sold in 2009 is far less than the 7.46 million a few years ago that is still a lot of homes! Things won’t stop completely, homes will sell, people will borrow lots of money to buy them, and things will eventually smooth out.
As far as the huge bailouts are concerned, I’d like to be the first to recommend a federal bail out for real estate agents. REALTORS® are getting hit pretty hard too: no sales = no income. A mere $1 billion in the Lakes Region spread around evenly among the agents would tide most of us over pretty nicely until things straighten out. I promise we won’t go on any junkets like AIG or use my private jet to go testify in congress. Obviously, this recommendation is made in jest. But just consider one thing; if you are trying to sell your home and you are a bit discouraged with this difficult market, your agent is in the same boat with you and is trying very, very hard to sell your property! Things are really tough right now for your agent too! The possibility of selling your home and finally seeing a paycheck after many months of hard work is likely the only bail out plan he or she will ever see!
Report covers the towns of Aton, Barnstead, Belmont, Center Harbor, Gilford, Gilmanton, Laconia, Meredith, Moultonborough, New Hampton, Sanbornton, and Tilton