Expert Seacoast Real Estate Market Analysis and more from Julie Dufault, Seacoast REALTOR.

There were 3 single family home sales in Portsmouth, NH during February 2009:

February 2009 Portsmouth, NH home sales:

246 Concord Way sold for $176,500
999 Woodbury Avenue sold for $160,000
109 Ash Street sold for $415,000

There were 2 condominium sales in Portsmouth, NH during February 2009:

February 2009 condominium sales:

25D Albacore Way sold for $309,900
1177 Sagamore Avenue sold for $569,000

How do 3 home sales and 2 condo sales compare to the level of activity we were seeing a year ago in February 2008?  A year ago, there were 7 single family sales in Portsmouth and 11 condo sales during the month of February.  Comparing this year to last, it is apparent the number of transactions is down, which is certainly a reflection of the changes in the economy which we have experienced in the past year.

The good news is that there is life out there, the number of pending transactions is evidence there are buyers taking action and sellers are willing to play ball.  Looking at Portsmouth market statistics as of today, there are 13 single family homes and 13 condominiums that are currently under contract.  If contingencies are met, for example if home inspections are satisfactory and loans are approved, then these transactions in the pipeline will likely translate to sales in the next 30 – 60 days.

Based on information from the Northern New England Real Estate Network, Inc. for the period of February 1, 2009 through February 28, 2009.

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There were 8 single family home sales in Portsmouth, NH during December 2008:

December 2008 Portsmouth, NH home sales:

201 US Route 1 Bypass sold for $72,000 (listed at $79,500)
472 R Middle Road sold for $80,000 (listed at $87,000)
592 Dennett Street sold for $305,000 (listed at $319,900)
54 Rogers Street sold for $335,000 (listed at $348,000)
6 Harding Road sold for $345,000 (listed at $359,900)
246 Holly Lane sold for $354,000 (listed at $369,900)
33 Hunking sold for $373,000 (listed for $375,000)
65 Wentworth sold for $410,000 (listed for $465,000)

The first two homes on the list were bank owned properties.

The average number of days on market for these homes (that sold during December 2008) was 122 days.  These homes sold, on average, within 95% of the asking price.

In terms of comparison, in December 2007, there were 10 single family home sales, averaging 89 days on market, and the properties were selling within 92% of the asking price.

Based on information from the Northern New England Real Estate Network, Inc. for the period of December 1, 2007 through December 31, 2007 and December 1, 2008 through December 31, 2008.

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Historically low interest rates are enticing prospective home buyers as well as homeowners interested in refinancing to take action, resulting in a record number of mortgage applications.  According to a survey released December 31, 2008 by Freddie Mac, interest rates on U.S. 30-year fixed-rate mortgages have dropped for a ninth consecutive week, and have reached their lowest level in thirty seven years.  Interest rates on the 30-year fixed rate mortgage are now at an average of 5.10 percent, which is the lowest rate for this type mortgage since Freddie Mac began the Primary Mortgage Market Survey in 1971.

Consumers are definitely paying attention to these falling rates.  According to the Mortgage Bankers Association, mortgage applications surged in mid-December to levels not seen since July 2003, more than five years ago.  The low rates currently available are an impetus for consumers who have been on the edge, waiting for some good news, to buy a home or to refinance their existing home.

The spike in mortgage applications has been a positive response to news in November that the Federal Reserve will spend near $600 billion buying mortgage securities backed by government sponsored entities like Fannie Mae, Freddie Mac and Ginnie Mae.

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There were 4 single family home sales and no condominium sales in Rye, NH during November 2008:

Rye, NH home sales:

106 Wentworth Road sold for $272,500
158 Clark sold for $305,000
411 Washington Road sold for $739,700
650 South Road sold for $787,500

Interestingly, three of the four properties came on the market in September and the Washington Road property came on the market in July so none of these properties were on the market for a significant amount of time.  Two of the properties went under contract in less than two weeks of coming on the market and a third property was on the market less than three weeks before going under contract.  This data indicates there is a pool of buyers watching the New Hampshire seacoast area real estate market and these buyers are poised and ready to take action when they recognize value.  In other words, the ticket to selling a property in today’s market is price.  Buyers make decisions based on value and in a buyer’s market, where the buyers have lots of properties to choose from, a competitive price will be recognized.

Based on information from the Northern New England Real Estate Network, Inc. for the period of November 1, 2008 through November 30, 2008.

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During November 2008 there were 11 home sales and 6 condominium sales in Portsmouth:

Portsmouth, NH home sales:

225 Wibird Street sold for $580,000
321 Dennett Street sold for $485,000
565 FW Hartford Drive sold for $475,000
569 Middle Street sold for $419,000
307 Wibird Street sold for $380,500
130 Nathaniel Drive sold for $370,000
66 Coakley sold for $360,000
37 Harrison Avenue sold for $355,000
311 Cabot Street sold for $337,500
3 Mariette Drive sold for $249,400
214 Concord Way sold for $218,000

Portsmouth, NH condominium sales:

135 Market Street, unit A, sold for $551,500
433 Lincoln Avenue sold for $407,000
605 Lincoln Avenue, unit 1, sold for $394,000
25 Albacore Way, unit A, sold for $309,900
199 Lincoln Avenue, unit 3, sold for $295,000
401 State Street, unit J212, sold for $250,000

This compares to 15 house sales and 14 condo sales during November 2007.  While the number of transactions is down this year compared to last, it is noteworthy that the average time on market for the properties that sold in November 2008 was considerably less than the average time on market for the properties that sold in November 2007.  For example, the average days on market for the Portsmouth homes that sold in November 2008 was 78 days versus 117 days in November 2007.  Along the same line, the average number of days on market for Portsmouth condos in November 2008 was 90 days versus 185 days in November 2007.  To that end, it is significant that the percentage of asking price versus selling price has increased, since last year, in both single family homes and condos.  Looking at the numbers, on average, the homes in Portsmouth that sold during November 2008 sold within 96% of the asking price and the condos sold within 98% of the asking price.  A year ago, in November 2007, these percentages were 95% for both single family homes and condominiums.

Last year, properties were lingering on the market for much longer periods of time and, a year later, although there may be less transactions, the sales that are happening are occurring at a quicker pace and there is less room for negotiation. This suggests that perhaps sellers in today’s market have adjusted their expectations accordingly and buyers, recognizing decent value, are willing to pay.

Based on information from the Northern New England Real Estate Network, Inc. for the period of November 1, 2008 through November 30, 2008.

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Turning on the television and tuning into a national news broadcast nowadays can be depressing with the doom and gloom reports on the economy.  We have become accustomed to seeing news headlines about foreclosures and the alarming rate at which they are occurring across the country.  There is no ignoring the issue, we are in tough economic times and everyone has an opinion about the real estate market.  For example, there are those who speculate that it will get worse and others suggest we have already hit the bottom.  But what about here in New Hampshire, how bad (or good) is it?

Perhaps to answer that question, it helps to put some statistics into perspective.  RealtyTrac, a research firm based in Irvine, CA, that tracks foreclosure properties, has announced that Nevada has claimed the country’s highest foreclosure rate for the 22nd consecutive month, in October 2008.  How does the nation’s highest foreclosure rate compute in terms of numbers?  It means that 1 in every 74 housing units in Nevada received a foreclosure filing notice during October.

Where else in our nation are foreclosures rampant?  Arizona secured the number two spot and Florida received the dubious honor of the nation’s third highest foreclosure rate in October 2008, with 1 in every 157 housing units going into default.  Rounding out the top ten list are California, Colorado, Georgia, Michigan, New Jersey, Illinois, and Ohio.

How about the Granite State? New Hampshire ranks 24th on the list of foreclosures for October 2008.  This equates to 1 in every 854 housing units being subject to default.  According to RealtyTrac and to Demographic Advisor to the New Hampshire Association of Realtors, Peter Francese, this means less than 1 percent of homes in New Hampshire are in foreclosure.  Things may not be perfect here, or anywhere for that matter, but putting things into perspective can make a difference on our outlook.  For this reason, it is important to keep in mind that when the national news headlines are screaming the foreclosure statistics in Nevada, those figures are six times the national average.  National news is not local news and New Hampshire is not Nevada.

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Where does a buyer find value in the New Hampshire seacoast area real estate market?  This is a popular question and it is hard to find one answer that applies to entire New Hampshire seacoast area.  After all, as the saying goes, real estate is all about “location, location, location”.  Real estate is local and each community must be considered as its own marketplace.

Taking a closer look at the local market, reviewing statistics in Portsmouth from January 2007 through late November 2007, and comparing those figures to what has transpired in 2008, from January through late November of this year, the big difference is in the number of transactions.  It will come as no surprise that the number of transactions has decreased.  However, there has been little change from last year in terms of the percentage difference between asking price verus selling price.  There is also little difference last year versus this year regarding the average number of days a property is on the market.

Looking at the timeframe of January 1, 2007 through November 27, 2007, there were 164 single family home sales and 146 condominium sales in Portsmouth.  This compares to 118 single family home sales and 126 condominium sales during this same 11 month period in 2008.  However, while the overall volume is down, single family homes in Portsmouth are currently selling within 96% of the asking price which is the same percentage point that they were selling at last year.  Condominiums have seen only a slight difference.  The statistics reveal that last year, during the period between January 1, 2007 through November 27, 2007, Portsmouth condominiums were selling at 97% of the asking price as opposed to 96% of the asking price during those same months in 2008.   These numbers are indicators that there is steady demand for property in Portsmouth.

Reviewing the sales statistics from another angle, Portsmouth single family residential properties that sold during this 11 month period in 2007 were on the market for an average of 100 days and, by comparison, in 2008 this has extended to 106 days.  There is only a slight change in the average time on market for Portsmouth condominiums, having risen from 125 days in 2007 to 126 days in 2008.  This is an excellent example of the role location plays in real estate. The national media frequently reports on areas of the country where properties routinely linger on the market upwards of 6 – 9 months, and in some areas of the country, the time on market is measured in years.

Are there deals to be had in this market?  Absolutely.  Some sellers are more motivated than others and often sellers whose properties have been exposed to the market longer have increased levels of motivation but it is also important to keep in mind that not all sellers are desperate.  The statistics for Portsmouth are indicative that this part of the State remains in demand and is evidence that our real estate market in 2008 has fared much better than many parts of the State and certainly better than the majority of the country.  Despite the bleak national media reports, the local real estate market is not dead.  The bottom line is that location means everything, real estate is local and the national news is not local.

Based on information from the Northern New England Real Estate Network, Inc. for the period of January 1, 2007 through November 27, 2008.

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