OVERVIEW :   Based on the number of sales for all three communities, the year ends with a “shrug”.  But – statistically speaking – a “dropping price year” of 14%  ( overall )  based on Median values. Once again, the diversity between communities is significant when you dig deeper into the data made available by NNEREN  ( Northern New England Real Estate Network).

FOURTH  QUARTER  COMPARISONS : Mostly because we are dealing with smaller sample sizes (i.e. – less transactions), one should always be skeptical of attaching significant conclusions to quarterly data.    For the Fourth quarter of 2010 in Amherst, Nashua and Hollis, NH  –  nine ( 9)  Executive homes were sold at a median price of $149.88 per square foot.    This compares to fifteen (15)  homes sold during the Fourth Quarter of 2009 at a median price of  $ 158.91 per square foot.  A significant drop-off in the number of transactions.

Continuing to monitor Days on Market .  ( Also known as   “DOM” – this is the time-frame between putting the home up for sale and the actual date of sale).  4th Qtr 2009 – the median  DOM  was 154 days.  For 4th Qtr of 2010 – 238 days.

Therefore, in general, sales activity decreased  with longer turn-around time ( more  DOM) in the fourth quarter of 2010  – and accompanied by a pricing decrease of six percent ( 5.7 %).

YEAR-TO-DATE COMPARISONS : This is the timeframe where the credibility of statistical data is more relevant. For  2010 – there were 47 luxury homes sold in Amherst , Hollis and Nashua at a median sales price of $138.56 per square foot.  During 2009 , 46 homes sold at a median price of 160.62 per square foot.  Therefore – due to a quiet fourth quarter – sales growth was basically flat year to year.    But – overall – about a fourteen percent drop in pricing ( 13.7 %).

Looking at the data for each town individually for the twelve months –  generates distinctive comparisons.     For Amherst, NH luxury homes sold - median pricing decreased from $144.89 per sq/ft ( 18 sold) in 2009   to $142.85  per sq/ft  ( 13 sold) during 2010.  Therefore, about a 1.5%  price drop.   In Hollis, NH  luxury homes sold - median pricing decreased from $180.87 per sq/ft ( 12 sold) in 2009   to $130.96  per sq/ft  ( 24 sold) during 2010. Therefore a 28%  price drop in Hollis, NH .  For Nashua, NH luxury homes sold  median pricing was down 3% in 2010.   $163.66 per sq/ft ( 12 sold) in 2009   versus  $158.60  per sq/ft  ( 10 sold) during 2010 .

Looking at  the median Days on Market ( “DOM” – the time-frame between listing and selling ) for each town.  In 2009 – we had Amherst (136), Hollis (111) and  Nashua ( 63).  For 2010 – we had Amherst (231),  Hollis (152) and  Nashua (220).

LOOKING FORWARD : There are currently  62  luxury homes for sale in the Nashua, Amherst, Hollis and Nashua, NH  marketplace. ( Note:  Last year – at this same time – there were 94 luxury homes on the market.)    In Amherst, NH there are twenty (20) homes listed for sale at a median asking  price  of  $155.80 per sq/ft.   In  Hollis, NH there are twenty-five (25) homes listed for sale at a median asking  price  of  $185.68 per sq/ft.   .    In Nashua, NH there are eighteen (17) homes listed for sale at a median asking  price of  $175.96  per sq/ft.   Days on Market ( DOM) are as follows: Amherst : 127 days, Hollis: 201 days. Nashua: 292 days ( mostly skewed by the Cherrywood Drive subdivision)

During the First Quarter of 2010 – eight  (8) luxury homes sold in Amherst, Hollis, and Nashua, NH  at a median sales price of $148.50 per sq/ft. ( Note:  fourty-seven (47) luxury homes sold during all of 2010).    As of December 31, 2010 ,  current “Pending & Contingent”  sales are already at  nine (9) homes.

Residential real estate is an imperfect market.  The oft-stated observation amongst experienced Realtors is that “neighborhoods” exist within all towns ( location, location, location).  This should be taken into consideration ( and evaluation ) when contemplating either sale or purchase. Property condition, materials, features  and  “life circumstances” are other variables that often factor into buying and selling decisions – both favorably and unfavorably. Work together with an experienced Realtor with whom you are comfortable and confident.

Based on information from the Northern New England Real Estate Network, Inc.  for the period January 1, 2009  to  December 31,  2010.

Contributed by Bill Spinelli, Associate Broker, Bean Group/Nashua.  For any further clarifications, questions or concerns, please call 603-966-8088 or send an e-mail to bill.spinelli@beangroup.com.

Overview

Remember hearing the “thud” out there last quarter ?  For those who may have missed it – here is a link to that report : 2^nd Quarter 2010  Executive Home Sales Report. Based on year-to-date sales information, the “thud” reverberated in the Third Quarter of 2010. Although, again, on an apparently selective basis.

Third  Quarter  Comparisons

Mostly because we are dealing with smaller sample sizes (i.e. – less transactions), one should always be skeptical of attaching significant conclusions to quarterly data.    For the Third quarter of 2010 in Amherst, Nashua and Hollis, NH  –  fourteen ( 14)  Executive homes were sold at a median price of $128.53 per square foot.    This compares to ten (10)  homes sold during the Third Quarter of 2009 at a median price of  $ 144.81 per square foot. An overall Selling Price decline of 12.67 %.

Again – because of a yet even smaller sample size – analyzing the towns individually on a quarterly basis seems intellectually useless. So – going forward we shall not waste any trees on quarterly individual town breakdowns.

However, we shall continue to monitor “Days on Market” for all homes sold in these towns.  ( Also known as   “DOM” – this is the time-frame between putting the home up for sale and the actual date of sale).  3^rd Qtr 2009 – the median DOM  was 192 days.  For 3^rd Qtr 2010 – 152 days.

Therefore, in general, sales activity was comparatively higher with quicker turn-around time ( less DOM) in the third quarter of 2010  – but  also accompanied by a pricing decline of over twelve and one-half  percent ( 12.67 %).

Year-To-Date Comparisons

This is the time-frame where the credibility of statistical data could be considered more relevant. For the first nine months of 2010 – there were 38 executive homes sold in Nashua, Amherst and Hollis at a median sales price of $135.67 per square foot.  During the same time-frame in 2009 , 31 homes sold at a median price of 144.16 per square foot.  Overall – more activity – but about a six percent drop in pricing ( 6.25 %).

Looking at the data for each town individually for the first nine months –  generates distinctive comparisons.   For Nashua, NH executive homes sold  median pricing was reasonably flat. $156.67 per sq/ft ( 6 sold) in 2009   versus  $155.62  per sq/ft  ( 9 sold) during 2010 .   For Amherst, NH executive homes sold - median pricing decreased from $143.92 per sq/ft ( 13 sold) in 2009   to $136.06  per sq/ft  ( 10 sold) during 2010.  Therefore, a 5.7% median price drop (thud) .  In Hollis, NH executive homes sold - median pricing decreased from $167.46 per sq/ft ( 12 sold) in 2009   to $126.82  per sq/ft  ( 9 sold) during 2010. Therefore a 32%  median price drop ( bigger thud ).

Looking at  the median Days on Market ( “DOM” – the time-frame between listing and selling ) for each town.  In 2009 – we had Nashua ( 180), Amherst (288) and Hollis (120).  For 2010 – we had Nashua ( 221), Amherst (228) and Hollis (125).

Looking Forward

There are currently  94 luxury homes for sale in the Nashua, Amherst and Hollis marketplace.    In Nashua, NH there are eighteen (18) homes listed for sale  at a median asking  price of  $179.74 per sq/ft.   In Amherst, NH there are thirty-eight (38) homes listed for sale at a median asking  price  of  $177.63 per sq/ft.   In  Hollis, NH there are thirty-eight (38) homes listed for sale at a median asking  price  of  $184.32 per sq/ft.   Days on Market ( DOM) are as follows:  Nashua: 253 days ( mostly skewed by the CherryWood Drive subdivision) , Amherst : 104 days, Hollis: 136 days.

During the Fourth quarter of 2009 – fifteen  (15) Executive homes sold in Nashua, Amherst and Hollis, NH  at a median sales price of $158.91 per sq/ft. ( Note:  fourty-six (46) luxury homes sold during 2009).    As of September 30, 2010 ,  current “Pending & Contingent”  sales are only at  six (6) homes.  As stated above, thirty-eight (38) luxury homes have sold thus far in 2010.   Does this luxury market end the year on a “whimper”, a “bang” or a “shrug” ?

Real estate is an imperfect market.  The oft-stated observation amongst experienced Realtors is that “neighborhoods” exist within all towns. This should be taken into consideration ( and evaluation ) when contemplating either sale or purchase. Property condition and  “life circumstances” are other variables that often factor into buying and selling decisions – both favorably and unfavorably.    Having someone capable of recognizing the opportunities an imperfect market creates and utilizing their experience to your favor is an advantage most people would desire in any environment  – at any price level.

Based on information from the Northern New England Real Estate Network, Inc.  for the period January 1, 2009  to  September 30, 2010.

Contributed by Bill Spinelli, Associate Broker, Bean Group/Nashua.  For any further clarifications, questions or concerns, please call 603-966-8088 or send an e-mail to bill.spinelli@beangroup.com.

OVERVIEW : Utilizing NNEREN  ( Northern New England Real Estate Network ) data generated since  2002 for Nashua, Amherst and Hollis, NH ,   there were solid indications that luxury homes bottomed-out  in 2008 and then began bouncing off that bottom and moving up during 2009 ( FYE 2009 – Executive Homes Market Blog) and the first quarter of 2010  ( 1st Qtr 2010 – Executive Homes Market Blog) .  “Cautiously Optimistic”  became the watch word.   Prices holding  to rising – number of transactions ( homes sold) still lagging however.

Somewhat surprisingly – we may have heard a distinctive THUD out there in southern NH Executive home sales during the second quarter of 2010.   “Executive Homes”  being defined as homes that sold for $500,000 ( Five hundred thousand ) or more.  “Southern NH”  meaning the communities  of  Nashua ,  Amherst and Hollis, NH.

Starting with this Quarter’s Blog  – I have also made a  formatting change .    Going forward – in addition to overviewing the  median  statistics for  all three communities – each town will be broken out and analyzed individually.   Hopefully this will provide more directly relevant  information to assist in current valuing  decisions.

SECOND QUARTER COMPARISONS : Our first glance at the “THUD” ?    For the Second quarter of 2010 ,  seventeen ( 17)  Executive homes were sold at a median price of $139.86 per square foot.    This compares to fourteen (14)  homes during the Second Quarter of 2009 sold at a median price of  $ 157.86 per square foot.  Therefore a pricing decline of almost twelve percent ( 12%) !

Looking at the homes sold data for each town  individually suggests a much different story however.    For Nashua, NH executive homes sold   pricing increased from $147.30 per sq/ft ( 2 sold) in 2009   to $155.62  per sq/ft  ( 5 sold) during 2010 .   For Amherst, NH executive homes sold  median pricing decreased slightly from $145.91 per sq/ft ( 5 sold) in 2009   to $141.24  per sq/ft  ( 6 sold) during 2010 .  In Hollis, NH executive homes sold  pricing decreased from $175.10 per sq/ft ( 7 sold) in 2009   to $132.04  per sq/ft  ( 6 sold) during 2010 ( THUD – 25%  !).  Another interesting statistic is the median Days on Market ( DOM is the time-frame between listing and selling ) for each town.  In 2009 – we had Nashua ( 262), Amherst (308) and Hollis ( 105).  For 2010 – we had Nashua ( 221), Amherst (231) and Hollis ( 78).

YEAR TO DATE COMPARISONS : Somewhat more encouraging when viewed from the six month standpoint. For the first six months of 2010 – there were 24 executive homes sold in Nashua, Amherst and Hollis at a median sales price of $143.51 per square foot.  During the same time-frame in 2009 , 21 homes sold at a median price of 145.91 per square foot.  A relatively flat comparison – but slightly downward.

Looking at the data for each town individually for the first six months – again provides distictive comparisons.   For Nashua, NH executive homes sold  median pricing increased from $136.29 per sq/ft ( 3 sold) in 2009   to $150.42  per sq/ft  ( 6 sold) during 2010 .   For Amherst, NH executive homes sold  median pricing increased from $145.91 per sq/ft ( 9 sold) in 2009   to $148.77  per sq/ft  ( 7 sold) during 2010 .  In Hollis, NH executive homes sold  median pricing decreased from $166.22 per sq/ft ( 9 sold) in 2009   to $131.51  per sq/ft  (  11 sold) during 2010 ( THUD ! , THUD ! – 21%).    Again – looking at  the median Days on Market ( the time-frame between listing and selling ) for each town.  In 2009 – we had Nashua ( 231), Amherst (303) and Hollis ( 105).  For 2010 – we had Nashua ( 222), Amherst (231) and Hollis ( 85).

LOOKING FORWARD : Understanding that one quarter does not make a year,  nor should any one quarter generate excessive concern or optimism for Sellers, Buyers or Realtors.    The more disquieting realization is that these results are occurring in a time-frame of declining interest rates – an environment more suitable for holding pricing steady or encouraging pricing up-ticks.

There are currently  90 luxury homes for sale in the Nashua, Amherst and Hollis marketplace versus 92 one year ago.   In Nashua, NH there are nineteen (19) homes listed for sale  at a median asking  price of  $175.76 per sq/ft.   In Amherst, NH there are twenty-eight (28) homes listed for sale at a median asking  price  of  $172.91 per sq/ft.   In  Hollis, NH there are fourty-three (43) homes listed for sale at a median asking  price  of  $179.18  per sq/ft.

During the Third quarter of 2009 – ten Executive homes sold in Nashua, Amherst and Hollis, NH  at a median sales price of $144.81 per sq/ft.    As of June 30, 2010 ,  current “Pending & Contingent”  sales are at  ten (10) homes.   This bodes favorably  for a respectable third quarter of 2010 relative to units sold.

Based on information from the Northern New England Real Estate Network, Inc.  for the period January 1, 2002  to  June 30, 2010.

Contributed by Bill Spinelli, Associate Broker, Bean Group / Nashua.   For a more detailed discussion of this article , or further questions, please  call  ( 603-966-8088) or send an e-mail to  bill.spinelli@beangroup.com.

Based on actual results for the first quarter,   there was a ten percent improvement  ( 10%)  in sold pricing  from the  first quarter of 2009.   Combining all three towns,  Median pricing of the eight homes that sold in the first quarter was $148.50 per square foot .    (  Note:  4th quarter of 2009 –  Sold pricing  was at $159.00 per sq/ft. ).  The Median sized Executive home  in Amherst, Nashua and Hollis appears to be stabilizing around 4,200 – 4,300 sq/ft.

First Quarter Comparisons

It should be noted that the first quarter of 2009 was the “slowest and lowest”  quarter relative to sales and pricing per square foot of all four quarters.    During 2009′s First quarter -  seven (7)  homes were sold at a median price of $134.75 per sq/ft.   Days on Market ( DOM)  was 180 in 2009 versus 151 in 2010′s first quarter.

Looking Forward

At the current time there are 73 active listings versus 88 at the same time a year ago.  Currently, there are eleven homes  (11) that are  under contract in Amherst, Nashua and Hollis.  This bodes  favorably as there were 14 homes sold in the second quarter of 2009  – at a median price of $158.00 per sq/ft.    As always – only time will tell the real story. But the  theme seems to be consistent with each quarterly report since a year ago – cautiously optimistic.

Based on information from the Northern New England Real Estate Network, Inc.  for the period January 1, 2009 to March 31, 2010.

Contributed by Bill Spinelli, Associate Broker, Bean Group – Nashua, NH

For a more detailed interpretation of this article , or further questions, please give me a call  (603-966-8088) or send an e-mail to bill.spinelli@beangroup.com

OVERVIEW : High-End Homes in southern NH. Number of Homes Sold continues to decline, yet  Sell Prices are stabilizing .  Although Sales of homes over $500,000 dropped 13%  from 2008 ( 46 sold in 2009   versus 53 in 2008),  the median square foot Sell Price actually increased 9%  ( $160.62 in 2009  versus $147.16 in 2008 ). Days on Market ( DOM) remained at approximately four months for the past two years.  Reviewing  the Number of Homes Sold,  Median Sq/ft Sell Price and Days on Market ( DOM) since 2002 in these three communities we have :

1. 2002          53          $150.16          80
2. 2003           80          $147.53         76
3. 2004           79          $152.09         64
4. 2005          115          $174.81         87
5. 2006           87          $162.69        102
6. 2007           62          $175.97        114
7. 2008           53          $147.16         122
8. 2009           46          $160.62         127

Based on 56 homes currently for sale in these three communities and the absorption rate of 2009 ( less than 4 homes per month) – we are looking at almost a 15 month supply of  high-end homes on the market in  Amherst, Nashua and Hollis.

The intra-community results for Amherst, Nashua and Hollis during 2009 for Number of  Homes Sold,  Median Selling Price,  Medium sq/ft size of home  and Selling Price per sq/ft   are as follows:

1. Amherst  -  18 sold,   $599,450   / 4,137 sq/ft    / $144.89  sq/ft
2. Nashua -      12 sold,   $568,750  / 3,475 sq/ft   /  $163.66  sq/ft
3. Hollis  -        16 sold,   $666,500 /  3,685 sq/ft   /   $180.87  sq/ft

FOURTH QUARTER COMPARISONS.  During the Fourth quarter of 2009 there were fifteen(15) Executive homes sold at a Median Price of $567,500 in Amherst, Nashua and Hollis.  Based on a median square footage of 3,570 sq/ft this translates to a Sell Price of $158.91  sq/ft.  Comparatively, during the Fourth quarter of 2008  there were ten (10) Executive homes sold in these three communities at a Median Price of $575,000.  Based on a median square footage of 3,968 sq/ft this translates to a Sell Price of $144.90.  Thus the Fourth quarter of 2009 favorably accounted for almost one-third of the annual volume and also evidenced a 9% pricing improvement from the previous year’s results  ( $158.91 vs $144.90) .

LOOKING FORWARD.   During the first quarter 0f 2009 there were only seven (7) high-end homes sold in the Amherst, Nashua and Hollis marketplace .  The Median Sale Price was $570,000 for a “typical” 4,230 square foot home – thus  translating to a Selling Price of $134.75 sq/ft.   ( It should be noted that this was the lowest quarter of 2009 for both units sold and sq/ft pricing).  At the time of this writing  ( 1/6/2010)   there are already seven ( 7) high-end homes under agreement ( median price of $169.76 sq/ft).   There are another fifty-six (56) high-end homes currently for sale in the three communities.  Coupled with the above results from the fourth quarter – it appears very promising that the bottom of the  market relative to sales activity has also been touched.    However – as always – we must wait for the facts to unfold.   Keep posted.

Based on information from the Northern New England Real Estate Network, Inc. for the period January 1, 2002 to December 31, 2009.

Contributed by Bill Spinelli, Associate Broker, Bean Group. For further inquiries or questions please e-mail at bill.spinelli@beangroup.com or call direct at 603-966-8088.

Getting Unstuck from the Mud ???

One of the more predictable luxuries ( no pun intended ) of writing about the Executive Homes market ($500,000 plus homes)  is that there is a much sturdier foundation in place to fall back upon in times of crisis.  Ultimately this fact provides us with a more clearly readable vision of the future.  Like all market segments  -  the damage is the greatest and the most widely felt at the beginning of any downturn .  It is no great revelation that it is the less financially stable that help to “broadcast” the news  and pave the way for home price declines. However, what often varies the most are the “time lag factors”  for each different market segment .   ( The actual data  highligting the historical selling price ”time lag”  for the Executive Home market are found in my Blog written last May - “Lonely at the Top ???” .  Basically, the “top” was reached in 2007 for Executive Home sales. ). Once the majority of these less fortunate situations are cleared from the marketplace,  the more financially stable can begin to look forward to a return to “normalcy”.    Why more easily predictable ???   Two main reasons .  In general , (1) this is a much less populated market ( only 96 Executive Homes currently for sale in Nashua, Amherst and Hollis)  and  (2)  this market segment ( again – in general ) will stick longer to their pricing goals – i.e.  most often due to longer decision making time-frames.  Based on the home sales data from the Third Quarter of 2009,   there are very positive indications that we are “out of the mud” and have reached the “strong foundation point” in the Executive Home market in Nashua, Amherst and Hollis.

The politically correct are becoming “cautiously optimistic”.  There are subdued (but constant) positive  murmurings being both heard and observed in this marketplace.  Also – please remember -  this is New Hampshire  – not Las Vegas, not California, not Phoenix, not Florida, not Detroit, etc., etc.,   So - say it – and perhaps you will even feel a little better – as the numbers seem to indicate.

Nashua, Amherst and Hollis – Executive Homes Sold – Third Quarter Comparisons – 2009 / 2008. During the Third Quarter of 2009 there were ten (10) Executive homes sold a a Median Sales Price of $611,250.  Based on a median square footage of 4,221 sq/ft  that translates to a Selling price of $144.81 per sq/ft. During the Third Quarter of 2008 there were twelve (12) Executive homes sold a a Median Sales Price of $567,000.  Based on a median square footage of 4,227  sq/ft  that translates to a Selling price of $134.14 per sq/ft.  Thus we have  almost an eight percent (8%) increase in sales price on a comparative quarterly basis.

Nashua, Amherst and Hollis – Executive Homes Sold – Nine Month Comparisons – 2009 / 2008.  For the first nine months of 2009 there were thirty-one  (31) Executive homes sold a a Median Sales Price of $600,000.  Based on a median square footage of 4,162 sq/ft  that translates to a Selling price of $144.16 per sq/ft.   During the first nine months of  2008 there were forty-three (43) Executive homes sold a a Median Sales Price of $627,000.  Based on a median square footage of 4,152  sq/ft  that translates to a Selling price of $151.01 per sq/ft. The Median Days on Market (DOM)was 135 during 2009 versus 102 during 2008 thus indicating that it is still taking longer to sell.

Looking Forward – Facts and Projections. In the fourth quarter of 2008 there were ten (10) Executive Homes sold in the Nashua, Amherst and Hollis marketplace. The Median sales price was $575,000 coupled with a Median square footage of 3,968 sq/ft resulted in a Median sales price of $144.90 per sq/ft.  At the beginning of the fourth quarter 2009 there are already nine (9)  homes that are under agreement and pending closing. The Median Asking Price for these homes is $559,950 and based on a median square footage of  3,768 sq/ft that translates to a projected Median Sales Price of $148.60 per sq/ft.  As always – we must wait for the facts.  However it certainly promising to see that we are showing solid signs of possibly having touched bottom in Nashua, Amherst and Hollis.

Based on information from the Northern New England Real Estate Network, Inc. for the period January 1,2008 to September 30, 2009.

Contributed by Bill Spinelli , Associate Broker, Bean Group.  For further inquiries or questions please e-mail at bill.spinelli@beangroup.com

“Sometimes – Stuck in the Mud is OK”

OVERVIEW. Homes selling at $500,000 or more in Nashua, Amherst and Hollis (“NAH”) enjoyed a solid selling price resurgence in the 2nd quarter of 2009 ( up 17% – per square foot – from the 1st quarter median selling price). More importantly however, median square foot sell prices mirrored those of the second quarter of 2008. Therefore the byline – “stuck in the mud “. It should be noted that the number of units sold were 25% less than during the same timeframe a year ago (14 vs 19). Psychologically, even that could be viewed as a positive (see below for questioning comments). There are currently four (4) more luxury homes on the market ( 92) than there were at the end of the first quarter of 2009.

There is this little throb in the background that makes one feel that being “stuck in the mud” is ok for the Sellers. Sellers get a feeling that prices are stabilizing. “Stuck in the mud” is not a bad deal for the Buyers either ! Buyers can still enjoy purchasing high end homes at prices very similar to 2004. ( see “Lonely at the Top” – April 2009 blog).

Have we reached the point in the high-end home market where we are down to the sturdy foundation? Do we only have Sellers that are “willing” (not forced ) to sell? Financially stable people are both willing to wait and capable of waiting. Are the remaining builders those that have finally proven to belong to the “survival of the fittest” class? This all would be the optimists view. However, even “mostly correct”, would certainly be a breath of fresh air – and stabilizing. As always – only time will tell the real story. Stay posted.

NAH – Executive Homes Sold – Second Quarter 2009. There were fourteen (14) homes sold at a median selling price of $610,000. With a median square footage of 3,864 this division translates to a selling price of $157.86 per sq/ft.

NAH – Executive Homes Sold – Second Quarter 2008. There were nineteen (19) homes sold at a median selling price of $665,000. With a median square footage of 4,232 this division translates to a selling price of $157.18 per sq/ft.

Six Month Comparisons – 2009 vs 2008 . So far in 2009, there have been 21 homes sold in Nashua, Amherst and Nashua (N AH) at prices exceeding $500,000. For the first six months of 2008 there were 33 homes sold. Once again, the number of units sold really only directly impacts the Realtors. As Buyers and Sellers you should mostly be focusing on the selling prices.

Based on information from the Northern New England Real Estate Network, Inc. for the period January 1, 2003 to June 30, 2009.

Contributed by : Bill Spinelli, Associate Broker, Bean Group

“Lonely at the Top ???”

This real estate by-line is inspired by a great satirist of the everyday clichés of life – with an unusual sense of humor. For you more musically inclined ( and slightly older folks ) – Randy Newman.

Certainly – from a newspaper selling perspective – NH “follows” nationwide trends on a generalized basis. However, we should constantly remind ourselves that New Hampshire is neither California, Florida, Phoenix nor Las Vegas. I believe quite strongly that opportunities are the greatest in times like now – so hopefully we can uncover actual local conditions and potentially capitalize ( as both Buyers and Sellers) over “generalized” mentalities and thinkers.

At the Executive Home level ( selling at $500,000+ ) in Nashua, Amherst and Hollis, the market appears to be abnormally favorable for the qualified Buyers. Why ?? Thus far in 2009 – the number of executive homes sold (9) is the lowest since 2002 (5) and dramatically below 2008 levels (21) . The 2009 per square foot “sold” price ( $145 sq/ft) was also the lowest in seven years and almost 20% below 2008 results ( $180 sq/ft).

From the Sellers perspective – “For Sale” pricing ( what the Seller wants to get) remains stable in 2009 ( $200/sq/ft average ). The huge disparity to the above is possibly best explained by the historic constants amongst more financially stable people. Financially stable people are both willing to wait and capable of waiting. They are more inclined to hold their pricing. Whatever the motivating reasons – change of life event ( health, divorce, death), retirement ( “I don’t give a damn – I / we are out of here” ) or a financial reversal – thus far in 2009 – it appears “lonely at the top” – for the executive home Sellers in Nashua, Amherst and Hollis. Quite simply – the best explanation appears to be that only the “very highly motivated” sellers are selling.

For those interested in the statistics backing up the above and maybe hypothecating longer-term trends ( 2002 to 2009) – simply keep reading. For those numerous others – unlike myself – who are more left-side brained ( or is it right-side brained ?) you can stop reading right now – my feelings will not be hurt. The bottom line reads the same.

Number of Executive Homes Sold – January to April – 2002 to 2009. Since 2002 ( only 5 sales) the number of executive homes sold had been trending upward fairly constantly. In 2003 (14 ), 2004 (12) , 2005 (23), 2006 (24), 2007 (19) ,and 2008 (21). The drop-off to only nine ( 9) executive homes sold in 2009 for the same January to April timeframe is definitely attention getting. However – this is a small database to utilize in drawing any meaningful conclusions – at least for right now.

Per Square Foot Sold Prices – January to April – 2002 to 2009. Again – these numbers generate an interesting pattern and are ( more recently) perhaps only useful to Buyers who can find the “very highly motivated” Seller. The average finished per square foot (Fin Sqft) selling price was $139 in 2002. For the average 4,600 Sqft home, this translated to an average $642,000 sold price. In 2003 those numbers were $153 / 4,100 / $631,000.

In 2004 the average executive home size fell below 4,000 square feet. The figures were $156 / 3,860 / $603,000. In 2005 those numbers were $173 / 3,860 (again) / $669,000. In 2006 we had $173 (again) / 3,680 / $638,000. Somewhat surprisingly in 2007 ( the recession was recognized then by a murmuring few) the numbers were $185 / 3,660 / $678,500.

As previously mentioned , In 2009, the Fin Sqft selling price dropped off dramatically to $145. An average home of 4,360 sqft translated to an average $634,000 sold price. (Note: for the first time since 2003 the average executive home size exceeded 4,000 Sqft.).

Ok – I have had enough numbers for this update. Going forward – I’m returning to my foundation mantra : “Report Monthly – Evaluate Quarterly “. See you again after June ‘09 – on a meaningful basis – but I know that I will be checking out May ’09 results ( force of habit ) .

One more – there are currently 90 active listings of executive homes in Nashua, Hollis and Amherst.

Based on information from the Northern New England Real Estate Network, Inc. for the period January 1, 2002 to April 30, 2009.

Contributed by Bill Spinelli, Associate Broker, Bean Group.

Real Estate Market Overview – Executive Homes In Amherst, Hollis, and Nashua NH

At the executive home level (greater than $500,000), some people have dubbed this three town loop the “technology triangle”. Both newcomers and natives revere these locations for the classic New England colonial, federal and farmhouse (New Englander) style homes. There exists both “old-money” and entrepreneurial wealth – with corresponding mindsets – throughout these three beautiful towns.

Aside from outstanding homes, high-end buyers seem to migrate to these three towns typically for the outstanding education system options, theater, arts, proximity to local skiing, hiking , biking , major airports, lake and mountain vacation spots. Naturally, waterfront living is also a possibility in any three of these towns.

For the entire year of 2008 – there were 57 sales of homes at prices exceeding $500,000 in Nashua, Hollis and Amherst. The Average Sales Price was $654,000 with an average of 3,566 square feet of Finished Above-Ground ( FAB) living ($183.00 per sq/ft). The average Days on Market (DOM) during this timeframe was 176 days with an average List Price to Selling Price ratio of 95.3%.

Executive and Luxury Home Sales In Amherst, Hollis, And Nashua – A Comparison Of First Quarter 2009 Versus First Quarter 2008

In the 2009 First Quarter there were only 7 residential closings. The Average Sales Price was $633,000 versus 14 closings and an average price of $612,000 in the comparable quarter in 2008. The First Quarter 2009 “Average Home” was 3,900 of above ground finished area translating to $162.00 per square foot selling price. The similar comparison in the 2008 Quarter resulted in 3,300 square feet ( above ground ) and thus approximately $185.00 per square foot Selling Price. Sell Price to List Price comparison was at 90.1% for 1st Qtr 2009 versus 94.8% for 2008. The average DOM was 175 for the first quarter of 2009 versus 192 for 2008 ( average of six months ). .

Looking forward, second quarter home sales activity last year was up approximately 35% from first quarter results. There were 19 closings in the Second quarter of 2008 at an average price of $753,000. The Sell Price to List Price was at 96.8% – again an encouraging reality statistic. The above –ground finished “Average Home” at 3,900 square feet translated to a $193.00 per square foot Selling Price. (Please see below for an interpretive discussion on “averages” ) The average DOM was 188. It will be very interesting to see how the Second Quarter of 2009 performs comparative to 2008 – both relative to pricing and closings in this market segment. Please remember that we are Realtors and cannot turn around the economy by ourselves. Stay positive, keep your head down and keep rowing !! There are currently 88 active listings of executive homes in Nashua, Hollis and Amherst.

FOOTNOTES ON “AVERAGES”, CMAs and INTANGIBLES . “AVERAGES” are useful and succeed to the extent of generating a starting point with a justifiable basis. CMA’s ( Comparative Market Analysis) remain the true analytical “lifeblood” for the Realtor and for their Clients. It is here that we can hone in on comparative reality through location, home styles, square footage, lot sizes and numerous possible amenity characteristics to further augment our recommended pricing or purchasing ranges. The INTANGIBLES of being genuine and continually focusing solely on our Client’s interests are where we further make the difference as Professionals.
Sales data based on information from the Northern New England Real Estate Network, Inc. for the period January 1, 2008 to March 31, 2009.

Contributed By Bill Spinelli – Associate Broker, Bean Group