Real Estate Info

Absorption rate is the rate at which homes are sold in a specific real estate market during a given time period. There are only a certain number of houses that will sell in any market > 

means the market will absorb 3 houses per month on average. If there are 72 homes for sale, there is a 2 year supply. A 6 month supply is a balanced market; less is a sellers’ market and more is a buyers’ market. New London, for example, currently has an 11 month supply of homes to sell. Sellers need to know the absorption rate in their market area and price accordingly. If it is more than a 6 month supply, sellers should be positioning their house to be the best value on the market – for price and condition. Contact me if you want to work with a REALTOR® who can help you best position your house in the market! 603-526-4116, www.donnaforest.com.

Donna Forest, Broker Associate, ABR

Known for service, trusted for results – Coldwell Banker Milestone Real Estate.

I’m happy to share with you the Summary of New London Sales for 2012. I’m particularly happy because, as I look back at my letter of last February, I see that my predictions came true! At last, the cliché of “over the hump” is totally appropriate! After 5+ years, I feel confident in saying that the worst is behind us, and that is very clearly reflected in the performance of the New London real estate market this year. Sales were up in all categories of property in the number of transactions, dollar volume, and average price.

Numbers of residential sales were up about 27%; dollar volume up about 34%; and the average selling price up about 5%+. You can see the significant increase in the number of sales in the $300,000-$399,999 range. This is a good indicator that 2013 will likely see more sales in the $400,000+ range. Even land sales showed decent improvement; this has been a very sluggish part of the market for quite some time. The same has been the case of the commercial market, but a number of sales occurred there as well. With a 36% increase in the number of condominiums sold, what were large inventories in that sector have come down significantly. I expect that we will see continued improvement here as well.

In looking at some of the numbers, you will see that the total dollar volume increased by $20,000,000+. About $11.5M of that total can be accounted for by an increase in lakefront sales (from about $8.1M in 2011, to $19.6M in 2012). In the 2012 total, there was one sale for $4.5M, one for $3.75M, and one for $2M. The average selling price of the 13 transactions (just residential waterfront) was about $1.5M. Condominiums account for another $3.4M; residential sales, about $4.5M. It’s just interesting to see how the increase was spread around.

Our continued hard work and consistency of attentive customer service yielded great successes for our sellers and buyers and an extremely productive year for Coldwell Banker Milestone, considerably out-performing the market overall. I believe that, with an improving and more stable economy, the easing of uncertainty, a stock market showing confidence, and the hint of some upward movement in interest rates, sideline-sitting buyers will be motivated to make a commitment. Advice to sellers will continue to be, “Price it to the market and good things will happen!” While we don’t want this market to take off like a rocket (we all know the results of that), a slow and steady pace of continued improvement will be most welcome. As always, we appreciate your referrals and you can be sure that our Team will deliver extraordinary care, service, and results! Thanks!

Marilyn R. Kidder, Broker/Owner, 603-526-4116

NL 2012 Stats

The New Hampshire residential real estate market ended 2012 with the most unit sales since 2006, the highest sales volume since 2007 and, over the last five months, a trend toward improving median price as well, according to data released this week by the New Hampshire Association of REALTORS® (NHAR). The 12,961 sales of single family residential properties was a 21 percent increase over the 10,714 sold in 2011, and the $3.2 billion in total sales volume was also 21 percent higher than that of a year ago. Median price in 2012, which had been lagging behind that of last year by 6.5 percent after the first four months, ended the year at $202,000, a hair ahead of the $201,700 in 2011. “Certainly there are a variety of economic factors that will be critical in terms of a sustained housing recovery, but we have reasons to be encouraged,” said 2013 NHAR President Bill Weidacher, a 30-year veteran of the real estate industry and a managing broker at Keller Williams Metropolitan Realty in Bedford. “Rather than the occasional statistical anomaly which we had seen over the past six years, this seems to be a genuine trend based on simple supply and demand principles.” To that end, each month in 2012 saw a substantial increase in unit sales compared to the same month one year prior, including a 38 percent increase in November. Of the last 18 months, 17 have seen an uptick in unit sales. “When you begin to see that sort of a consistent upward movement in sales, in a healthy market you would expect that to lead to a decrease in inventory and ultimately an increase in price, and that’s just what we’ve seen,” Weidacher said. “Even so, we don’t want to give the impression that we are expecting dramatic price gains any time soon. “ Slow and steady are the watchwords here.” Prices remained below 2011 levels for each of the first seven months in 2012, but that began to turn in August, when the $210,000 median price was equal to that of August a year earlier. September witnessed a 2.3 percent increase, followed by 11.6 percent in October, 9.1 percent in November and 0.3 percent in December, leading to the year-end median price of $202,000. Locally, each of the 10 New Hampshire counties saw significant unit sales increases in 2012 compared to 2011, ranging from a 17 percent boost in Belknap County to 24 percent in Coos County. The state’s largest, Hillsborough County, witnessed a 23 percent gain in unit sales. Four counties saw increased median sale prices in 2012, four counties saw decreases, and both Carroll and Hillsborough counties remained unchanged from 2011 prices. December 2012 data residentialData December 2012 condo salesSource:  Press Release, Dave Cummings, NHAR Director of Communications

One of the most important steps you can take to insure that you will be successful in today’s market is to engage a Real Estate Professional (a REALTOR®).  Although this has always been important, the challenges of today’s market make it more so. A REALTOR® working for you as your Listing or Buyer’s Agent, at the very least, owes you the specific fiduciary duties of loyalty, obedience, disclosure, confidentiality, reasonable care, diligence and accounting.  You will know that you can trust your agent, and that she will be looking out for your best interests.  In addition, working with a professional will also provide a personal guide through the complex maze of either analyzing the market to determine the correct strategy for selling your home or helping you find and, ultimately, purchase a home.  In either case, she is working for you, and you can count on her for expert guidance, an ability to network with other professionals crucial to the process (inspectors, home stagers, painters, lenders, etc.), knowledge of the local market and communities in the area, familiarity with all the steps and forms required to sell or purchase a home, and strong negotiating and communication skills. There is no doubt that the internet has revolutionized the home selling or buying process.  There are excellent tools and resources available along with mountains of information.  It’s a great opportunity for both sellers and buyers to educate themselves in advance of contacting an agent. But, when it comes to taking the important step of listing or buying a home, nothing can replace the “on the ground” experience and professional skills of a REALTOR®.  This is not the time to try to “go it alone” out there.  Take advantage of all that a professional has to offer.  The end result will be a smoother and more satisfying transaction. Give “The Best Team in Town” at Coldwell Banker Milestone Real Estate a call for a free, no-obligation consultation.  603-526-4116

Yes, the real estate market may finally be heading in an upward swing!  Market predictions are estimating a 3% increase in the nationwide home pricing.  The most recent figures (Oct. 2012) from the NH ASSOCIATION OF REALTORS® show that the median sales price only dropped 1.2% YTD in 2012 and that the volume of sales is up 20%.

• According to a 12-26-12 article in the Wall St. Journal, home prices are on track to notch their first yearly gain since 2006.  They feel the tide has changed and that prices will start rising this year.
• On 11-28-12, Fiserv Case-Shiller reported that the 2012 spring/summer real estate market was the strongest since the peak.  They are projecting home prices to grow at an annualized rate of 3.3% from mid-2012 thru 2017.
• On 12-26-12, Pulsenomics announced the results of a survey with a nationwide panel of more than 100 professional forecasters and they expect home prices to rise 3.1% in 2013.  They predict that home prices will increase 3.1% - 3.3% thru 2017.

All markets are local so be sure to contact your REALTOR® to understand what is going on in your area.  Give me a call if you want to work with your local expert in the Lake Sunapee Region!  603-526-4116.

Donna Forest, ABR, Broker Associate

In this area there definitely is.  Usually it’s our first sign of spring when For Sale signs start popping up like dandelions in the lawn and our multiple listings change daily with new homes and land on the market.  Historic data at the National Association of REALTORS® indicate that April through July sales outpace the rest of the year in sales.  Buying stays steady through the summer and early fall.  It usually drops off right after Labor Day for a couple of weeks and then picks up again in October through early November.  Two of the more obvious factors for this “seasonal” market include the fact that school has ended and families prefer to move before the next school year starts as well as the weather is much nicer in the spring-summer to be out looking at properties.  This is not to say that properties will not sell any other time of year.  It just means that in this area there may be less buyers out there looking.  With proper pricing and enhancing your home for maximum effect, a house will sell regardless of the month.  Give me a call to get the Coldwell Banker advantage any time of year.  Donna Forest, Broker Associate, 603-526-4116; www.donnaforest.com

I recently attended an event where one of the guest speakers was Lawrence Yun, the Chief Economist for the National Assoc. of Realtors.  Below are some of the highlights.

• Home sales are the best they’ve been in 5 yrs.  Nationwide sales are up 8%.  As of September 2012, NH sales are up 19%.
• One reason for a slower recovery, aside from the credit bubble hangover, is that people are not moving as much right now.  (Mobility rate fell from 18% to 12%).
• Investors are back in the market and they are buying.
• The housing forecast is that we may see a 5% increase in NH home prices next year.
• Housing market will be a multi-year recovery.  Shrinking inventory will push prices higher.
• Nationwide, the median price of a home is up 11.4% from a year ago.  In NH, the median price, as of September was down 2.4%.

High affordability, job creation, and rising rents will be pushing the housing market forward.  There has NEVER been a better time to buy!  Give me a call if you don’t want to miss out on your buying opportunity.  Donna Forest, Broker Associate 603-526-4116; donna@donnaforest.com.