New Hampshire housing sales down about 10 percent

Sunday, Aug. 13, 2006

MANCHESTER (AP) – Sales of existing homes are down about 10 percent from last year overall – though sales in some parts of the state continue to do well.

Overall, sales dropped from 8,004 to 7,265 for the first five months of 2005 and this year respectively.

That has resulted in an 8 percent decrease in total sales from $2.1 billion to $1.9 billion.

The average sale price of a home has continued to increase, but at a slower rate than the past few years. The average price for the period increased from $261,347 to $264,894 or 1.4 percent, far short of the double-digit increase experienced in years past.

Real estate agents say sellers should not expect quick sales. A home was on the market 139 days this year before being sold – compared to 134 days last year.

Paul Griffin, executive vice president of the New Hampshire Association of Realtors, said while the market is slowing down, “the best way to describe it is a balancing of the market.”

“Each area has its nuances,” Griffin said.

Sales have increased in the Upper Valley, the Claremont area, Strafford County and the White Mountains.

Sales have fallen significantly on the Seacoast, in the remainder of Rockingham County including Salem, Concord, and the Monadnock, North County and Lake Sunapee regions, as well as Manchester and Nashua.

The biggest drop off in sales is mostly in areas where the average selling price is the highest, such as the Seacoast, Salem, greater Nashua and the Lake Sunapee area.

Darryl Salls, president of the Upper Valley Board of Realtors, said the Upper Valley is doing well because of Dartmouth College, the Dartmouth-Hitchcock Medical Center and the area’s large manufacturers and high tech sector.

He said price are not increasing as fast as in the past, however. Interest rates also remain relatively low, he said.

“Interest rates are not that big a thing at this point. Until they go over 7 percent, they won’t slow the market,” Salls said.

The Lakes Region has seen the largest percentage increase in home prices, going from an average of $257,347 a year ago to $296,377, a 15.2 percent increase. The Claremont area also saw a double digit increase in the average sales price going from $135,630 a year ago to $148,610, a 10 percent increase.

Other areas of the state saw more modest increases such as the 2 percent increase in the Nashua area, and 2.3 percent increase in the Upper Valley.

The largest decrease in sales prices from a year ago occurred in Strafford County, where the average price dropped from $234,898 to $211,813, or 10 percent. The Seacoast area experienced a 5 percent decrease in sales prices, going from a state high of $373,432 a year ago, to a still state leading $355,506.

Other areas experiencing decreasing selling prices include Manchester, down $5,400, or 2 percent from a year ago, and the North County with a decrease of $6,800 or 4 percent.