As 2022 ends and 2023 begins, there is a confluence of events that have never – or at least has very rarely – been seen before, and even rarer to be seen at the same time. There is an almost unprecedented increase in interest rates within an unusually short period of time, while at the same time having little effect on our local real estate market. The paper-thin slice of time from when workers were, more or less, told they could work from anywhere, even from home, and are now in large measure being called back to work at the office. Headlines proclaiming recession, and layoffs at the same time hearing everyone locally is looking for workers and can’t find them. It seems to be such a paradox.
As the real estate market transitions into a new year, real estate professionals are keeping a close eye on how the new market will evolve. As in any fluid environment, staying ahead of the of the curve with the proper skill set, market intel and marketing products will go a long way in successfully achieving your real estate goals.
Market information collected from nhar.org, available to consumers and professionals, is a great tool to gather state and county-specific market data and insight.
The number of closed sales in Merrimack County were down by 12.5%. In 2021, closed sales were 1,859 and outnumbered 2022 at 1,626. Navigating limited inventory and low affordability in the Merrimack County residential market has been an ongoing challenge for buyers. Combined higher interest rates, inflation and rising energy costs would overall result in a reduction in the number of sales in 2022.
New listings in 2022 were reduced by 9.1%, therefore closing fewer homes with higher median sale prices. Supply and demand are keeping our local values elevated and we can anticipate continued appreciation due to our housing shortage. New Hampshire’s new construction availability is years behind the curve with a “More families than homes” deficit. The result is the number of units sold this year is similar to the number of units sold in 2013 & 2014.
Total volume closed for Merrimack County increased by 2.9% from $760,563,065 in 2021 to $782,848,272 in 2022.
We’re underway with a very fluid market where smarter tactics will provide better results. As a seasoned real estate professional, I want to share how I maneuvered thru the changing market back in 2008-2010 when home values were recalibrating as we might expect them to do again.
I recall heavily relying on current comprehensive marketing proposals for clients with weekly and monthly updates of competing properties. The collective information we gather is based on current sold and pending activity “continually checking previous data to inform how to rightfully move forward.”.
Hiring professionals to fine tune the look and condition of your home was and still is crucial. Another part of what’s changing is “Home Inspections” contingencies are now back in many contracts. But it is still advisable for a Seller to consider addressing any outstanding list of repairs prior to listing.
Get yourself prepared: It takes time to weed out personal belongings and streamline the look of your home, plan for that and inquire with me for resources needed and suggestions.
Pricing: It needs to be right, the list price simply indicates an approximate but appropriate price, its main purpose is to drive the right qualified interest to the property in addition to being able to support appraisal value when financed. The greater the interest, the more likely the price will climb.
Under contract details: The process and communications with all parties involved once under contract is easily mapped out. I continue to have detailed conversations and actions with my clients during, inspections, appraisal, and all moving details. My time and experience in the industry has provided me with all the tools, contacts and resources to lead you successfully through your real estate transaction.
Keeping tabs on our fluid market environment, Buyers are very attentive, it appears if rates remain below 6% there’s ample approved Buyers in the arena.
Mortgage Brokers and Lenders are getting creative with their products. Lenders are acknowledging specific Buyer needs and offering programs that work with their situation. Adjustable ARM programs seem to be back in the running, offering competitive rates, options to recast, refi or lock into a lower rate prior to closing. Recasting a loan gives Buyers the option to paydown a large portion of their principal amount hence reducing their monthly payment, not being locked into the same “conventional payment” for years. Qualifying Buyers are seeing opportunities for appraisal waivers saving them on closing costs and better positioning them with competing offers.
Statewide, December showed approximately 1.3 months’ supply of inventory. A balanced market is considered to have five to seven months of active inventory, New Hampshire’s last balanced market was last seen in 2015.
While it seemed that buyers had a bit more breathing room the last few months of 2022, it’s common knowledge that our local inventory is still a seller’s market, effectively positioning an offer with what’s crucial to the Sellers may give a slight advantage point when offering.
I try not to become a person of success but rather a person of value. My personal approach and attention to detail with each client is crucial in today’s market. My proven track record of satisfied clients, friends and family have given me the opportunity to be a part of hundreds of closings in our Capital City.
Offering over 20 years local experience, backed by nationally known Better Homes & Gardens as well as Masiello Group’s trusted name in the industry. Masiello’s local real estate services have been the New Hampshire real estate name for over 52 years.
Uncertainly is a typical response when considering a move, I’m here to provide the necessary direction to achieve your real estate goals.