From a home buyer perspective this is the best of times in Hillsborough County New Hampshire. The volume of for sale homes represents 13.8 months of inventory based on closed sales. In the months of January and February in 2008 the inventory level was 15.0 and 16.1 months which dropped to 8-9 months by mid summer of 2008. Inventory in February of 2009 is up by 32.7% relative to 2007, but it lower by 14.3% compared to 2008.
Homes for sale inventory in Hillsborough County NH
What do these numbers mean for home buyers? Sales are the most sluggish during the deep freeze of winter months, desirable inventory is the largest, sellers are the most motivated or they wouldn’t be on the market. Once the weather softens, the snow melts, the party is over. Although more homes are coming on the market, the pace of sales picks up too, reducing the sellers’ motivation to give away the property once spring is here.
Homes for sale, sold and pending in Hillsborough County NH
The inventory trend is supported by the total number of homes for sale in Hillsborough County compared to sold properties or sales pending. The supply of houses for sale shows strong seasonality and peaks during the summer months along with home sales picking up. But the trend line of real estate for sale has been drooping since 2007, last June, July and August there were roughly 2,600 homes for sale compared to 2,800 in 2007; a 7.1% drop in the supply. In 2007 home sales peaked at ~ 300 / month, while in 2007 the June, July, August homes sales were 366, 303 and 376 respectively; a 13.8% loss in real estate sales activity. This increasing gap between homes listed in Hillsborough County NH and homes sold justifies the sellers pessimism about the real estate market.
The problem appears to be that buyers adopt the same attitude, instead of grabbing their chance by two hands. The time for great deals is when supply is high, sales activity is low and interest rates are low. 30Y fixed rates have come back down to nearly 5% an 5/1 ARMs have plummeted from nearly 5.9% to 4.8% in three months.
30 year fixed rate mortgage trend
The take-away for New Hampshire home buyers: spring into action before spring arrives.
related articles:
Icy Rockingham County NH real estate
Foreclosures in Hillsborough County NH
