Londonderry, NH

At the end of 2008 Londonderry’s absorption rate was 7.19 months, which means that it would take 7.19 months to sell the current real estate inventory on the market. If the absorption rate is above 6 months the market is considered to be a buyer’s market. The end of year absorption rate showed that Londonderry was firmly in the grips of the buyer’s market and even though the town fared better than its neighbors or the county the market for sellers was less than ideal.

Now that the 1st quarter has ended, the newest numbers show that Londonderry has slightly moved even more into a buyer’s market. Londonderry’s absorption rate is now at 7.68 months.  Knowing what length of time it might take your property to sell is very important, and the absorption rate of a town is key to knowing where to price your property and how long it may take to sell. Londonderry’s absorption rate reflects the continued trend of a buyer’s market and therefore if you are selling your house or thinking of selling it, you need to keep in mind that the market is still very soft for sellers.

When marketing your property it is always important to be aware of current market trends. If you are considering selling your home, you need to have someone with the expertise and experience to help you navigate the ever changing waters of the real estate market.

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

Contributed by Christopher Bonta, Bean Group

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During the month of March in Londonderry there were 78 condos on the market for sale, 4 sold and 2 under contract to be sold. The active number has increased from the first two months of the year as in January there were 66 condos for sale, 5 sold, and 4 under contract to be sold and in February there were 70 condos for sale, 9 sold and 5 under contract to be sold.

The lowest price condo for sale in Londonderry is $73,900 and the highest is $451,000 with the median price of $147,000.

The average days on market in March was 129 days which was a significant increase from 88 in January but a significant decrease from 162 in February.

In March, condos sold at 99% of list price which was up from 95% in January but down from 104% in February. The average price of condos for sale in March was $218,000 and the average price of condos sold was $160,000 which is an indication that the lower price condo market is more active at this time.

The absorption rate in March was 19.5 months and has risen dramatically in 2009 from 13.2 months in January and 7.8 months in February. The Londonderry condo market, unlike the single family home market, has risen far out of balance in March. Sales are down, inventory is up and the days on market increased significantly. Why is this occurring?

FHA Financing Restrictions Impacting Condo And Condex Market Sales In Londonderry

In Londonderry, the condo market consists of condominiums and condexes. A condex is typically a two family unit with each owner owning fractional interest in the building and land. All exterior maintenance costs are shared and each owner is responsible for interior maintenance. There is no condominium association, documentation, rules and regulations, and therefore usually no fees. Condexes are attractive to first time homebuyers because they are usually priced within their reach and there are no monthly fees added to a mortgage payment. Many first time homebuyers are opting for FHA financing because of FHA’s 5% down requirement. However, FHA does not provide financing for condexes because the fact that there is no structured association and the risk is perceived as too great. That lack of a 95% financing option keeps first time homebuyers at bay.

In contrast, with a condominium there is usually a condo association which takes care of managing the property, performing outside maintenance, snow removal, landscaping, etc. There are condominium rules and regulations and monthly association fees, which can be quite high, $200 to $400, added to a mortgage payment. Although financing a condo can be easier some home buyers, especially first time buyers are finding those monthly fees to be prohibitive.

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

Contributed By Doug Charnley, Managing Broker and REALTOR, Bean Group

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In Londonderry, during the month of March, there were 82 homes for sale, 14 sold, and 10 under contract to be sold. The amount of homes on the market remained relatively steady in the first two months of 2009 but the number sold in March increased over January with 4 sold and February with 9 sold. Currently the lowest price home on the market in Londonderry is $174,000 and the highest is $599,000 with a median price of $256,000

The average days on market in March was 88 days which was a dramatic reduction from 123 in January and 149 in February.

In March, homes sold at 96% of list price which remained steady in January and February. The average price of homes for sale in March was $337,000 and the average price of homes sold was $272,000 which is an indication that the lower price home market is more active at this time.

The March absorption rate, which is the number of months it would take to sell the existing inventory if no other homes came to market, was 5.9 months and has been on the decline in 2009 from a high of 21.5 months in January and 9 months in February.

With the snow now behind us and the days getting steadily warmer, we are definitely in the Spring home selling market.

Londonderry has fared quite well in 2009 in respect to single family home sales. Looking back to the March absorption rate of 5.9 months of inventory, an absorption rate from 5.5 to 7.2 is known as a balanced supply and demand of inventory. Any rate lower that 5.5 is a seller’s market and anything greater the 7.2 is a buyer’s market.

That rate combined with the decrease in days on market, indicates homes are being priced right by sellers and with the low interest rates along with first time home buyer tax incentives, buyers are purchasing.

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

Contributed By Doug Charnley, Managing Broker and REALTOR, Bean Group

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