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Home Sales Drop In 2006
January 23, 2007
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MANCHESTER, N.H. -- Across New England, 2006 was a tough year in real estate, but agents said they expect the New Hampshire market to pick up this year.
Home values and sales dropped in 2006, but a study by the New Hampshire Association of Realtors said that buyers were headed into 2007 with more confidence in the housing market.
"And I think buyers will get off the fence and get into the market, and they'll say that the rates are still really low," said Bonnie Guevin, president of the New Hampshire Association of Realtors.
Guevin said 2006 was an adjustment year. In 2005, 16,000 homes were sold at an average price of $310,000. In 2006, 13,000 were sold at an average of $306,000, an 18 percent drop in sales and a 1.6 percent decline in value.
In both years, houses averaged about three months on the market.
Sales were off statewide, but the biggest declines were in Rockingham, Hillsborough, Strafford and Merrimack counties. Experts said that they believe that home values are staying strong.
"Sellers are realistic," said Kathy Corey Fox, past president of the state Association of Realtors. "They understand the market from last year, and they're willing to be somewhat flexible."
In the last five years, home values soared, and annual appreciation reached double digits. Typically, 1 to 3 percent appreciation is considered solid growth by industry standards.
In Massachusetts, median home values fell $20,000 last year, from $345,000 to $325,000. That followed 12 straight years of growth.
New Hampshire agents said that the future looks brighter in New Hampshire.
"Look at the job market," Fox said. "Our economy is still very strong, people are coming here. They want to buy and live in New Hampshire."
But experts said that for many in New Hampshire, the price of buying a home remains out of reach, forcing some to shop for condominiums instead.
"If we don't have workforce housing, how do companies survive?" Guevin said. "So there's an economic balance we need to have."
Condo sales mirrored home sales, dropping 17 percent in 2006, but values rose slightly. The average price for a condo was $206,000.
Copyright 2007 by WMUR. All rights reserved. .
