Nashua, Amherst and Hollis, NH – Executive Homes Sales Report – Third Quarter 2009
October 12th, 2009by Bill Spinelli
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
