Single Family Housing Market In Derry, NH Shows Growth From A Challenging Start In 2009
April 23rd, 2009by Doug Charnley
March 2009 Single Family Residential Market Update – Derry, NH
The Derry single family residential real estate market shows growth from a challenging start in 2009. In the month of March, there were 171 homes for sale, 14 sold, and 13 under contract to be sold. The number of homes on the market increased more then 13% in March from 151 in January and 152 in February and the number sold in March also showed a positive increase from 7 in January and 11 in February.
Currently the lowest price home for sale in Derry is $89,500 and the highest is $899,000 with a median price of $208,000.
The average days on market in March was 112 days and has been on the increase in 2009 from 69 in January and 107 in February. Even with that increase, the average days on market was 18.3% lower then the 137 days in October of 2008.
In March, homes sold at 97% of list price which increased from 95% in January and 94% February.
The average price of homes for sale in March was $282,000 and the average price of homes sold was $212,000 which is an indication that the lower price home market is more active at this time.
The March absorption rate, defined as the number of months it would take to sell the existing inventory if no other homes came to market, was 12.2 months and has been on the decline in 2009 from a high of 21.6 months in January and 13.8 months in February.
With winter a fading memory and the outlook of steadily warmer days to come, we have moved into the spring home selling market.
Derry is in a buyer’s market in respect to single family home sales. Recalling the March absorption rate of 12.2 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. In comparison to the last three months of 2008 where October saw an absorption rate of 5.9, November 9.5, and December 8.4, the March rate is an 108.6% increase over October.
What does this mean for buyers and sellers? Although the number of homes sold has been increasing and the absorption rate is on a downward path so far this year, it is still a buyers market and sellers that wish to take advantage of the Spring market must price their homes well.
March 2009 Condo/Condex Market Update For Derry, NH
The Derry Condo/Condex market showing positive signs. In the month of March, there were 111 condos on the market for sale, 13 sold and 6 under contract to be sold. The on market number has decreased slightly from the first two months of the year but the number sold has increased as in January there were 114 condos for sale, 7 sold, and 5 under contract to be sold and in February there were 116 condos for sale, 3 sold and 12 under contract to be sold.
The lowest price condo on the market is $46,000 and the highest is $349,900 with the median price of $130,000.
The average days on market in March was 155 days which was a slight increase from 154 in January and a larger increase decrease from 145 in February.
In March, condos sold at 98% of list price which was down from 99% in January but up from 95% in February.
The average price of condos for sale in March was $178,000 and the average price of condos sold was $118,000 which is an indication that the lower price condo market is more active at this time.
The absorption rate in March was 8.5 months was a large decrease from 16.3 months in January and a dramatic decrease from 38.7 months in February. Looking back to October 2008, the absorption rate was also at 8.5 months and heading into 2009 rose to 10.1 in November and 15 in December.
The Derry condo market is a buyers market but a bit more toward balance then the single family residential market. Sales have increased and inventory along with days on market has remained relatively steady.
The lower prices of the condos on the market and sold have definitely played a role in moving this market to its current level. I’ll continue to monitor both the Derry single family residential and the condo market and report in my April installment.
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 & REALTOR, Bean Group
