Finding Value In The New Hampshire Seacoast Area Real Estate Market
Friday, November 28th, 2008Where does a buyer find value in the New Hampshire seacoast area real estate market? This is a popular question and it is hard to find one answer that applies to entire New Hampshire seacoast area. After all, as the saying goes, real estate is all about “location, location, location”. Real estate is local and each community must be considered as its own marketplace.
Taking a closer look at the local market, reviewing statistics in Portsmouth from January 2007 through late November 2007, and comparing those figures to what has transpired in 2008, from January through late November of this year, the big difference is in the number of transactions. It will come as no surprise that the number of transactions has decreased. However, there has been little change from last year in terms of the percentage difference between asking price verus selling price. There is also little difference last year versus this year regarding the average number of days a property is on the market.
Looking at the timeframe of January 1, 2007 through November 27, 2007, there were 164 single family home sales and 146 condominium sales in Portsmouth. This compares to 118 single family home sales and 126 condominium sales during this same 11 month period in 2008. However, while the overall volume is down, single family homes in Portsmouth are currently selling within 96% of the asking price which is the same percentage point that they were selling at last year. Condominiums have seen only a slight difference. The statistics reveal that last year, during the period between January 1, 2007 through November 27, 2007, Portsmouth condominiums were selling at 97% of the asking price as opposed to 96% of the asking price during those same months in 2008. These numbers are indicators that there is steady demand for property in Portsmouth.
Reviewing the sales statistics from another angle, Portsmouth single family residential properties that sold during this 11 month period in 2007 were on the market for an average of 100 days and, by comparison, in 2008 this has extended to 106 days. There is only a slight change in the average time on market for Portsmouth condominiums, having risen from 125 days in 2007 to 126 days in 2008. This is an excellent example of the role location plays in real estate. The national media frequently reports on areas of the country where properties routinely linger on the market upwards of 6 – 9 months, and in some areas of the country, the time on market is measured in years.
Are there deals to be had in this market? Absolutely. Some sellers are more motivated than others and often sellers whose properties have been exposed to the market longer have increased levels of motivation but it is also important to keep in mind that not all sellers are desperate. The statistics for Portsmouth are indicative that this part of the State remains in demand and is evidence that our real estate market in 2008 has fared much better than many parts of the State and certainly better than the majority of the country. Despite the bleak national media reports, the local real estate market is not dead. The bottom line is that location means everything, real estate is local and the national news is not local.
Based on information from the Northern New England Real Estate Network, Inc. for the period of January 1, 2007 through November 27, 2008.
