Things are looking up nationally and in the state of New Hampshire as it pertains to housing values. CoreLogic recently reported that “US Home Prices posted their biggest annual jump in more than six years in October….the price index rose 6.3% compared to October a year ago.” This is great news when you consider this is the eighth consecutive increase in the home prices nationally on a year over year basis.
Another gauge…look at pending home sales. According to the National Association of REALTORS®, monthly pending sales are now up 13.2% from October of 2011. This positive statistic is more good news because it is a forward looking indicator which should result in closed sales one to three months from now. The pending sales are at the highest level since March of 2007 according to the National Association.
For the state of New Hampshire, it gets even better….median home prices shot up at double digit rates in October according to the NH Association of REALTORS®. The median price of a single-family home sold in the state went up by 11.6% in October of 2012 compared to October 2011, from $190,000 to $212,000 as reported by the Union Leader. Sounds like we have finally reached capitulation! For most of the year all of us REALTORS® have seen unit sales increasing however prices were still declining. During the spring of 2012 Roche Realty Group experienced an increase in the number of unit home sales compared to the same period of 2011 reflecting an increase of approximately 23% however our sales volume was just a small amount higher than the previous period in 2011. When I look at today’s numbers the volume is increasing pointing to a rise in reflective sales prices. We have been saying for months now, it will only be a matter of time ‘til prices begin to rise again.
Based on my 36 years of experience in the industry, I feel we are rapidly approaching capitulation or could possiblyalready be there, at certain price ranges and specific markets. Keep in mind that continued inflation is on the horizon with so many governments printing money throughout the globe. When you look at the USA average house prices compared to the rest of developed world our prices are much more favorable. Look at Europe, Canada, Australia and the Asian countries….they are skyrocketing. You almost have to go to a 3rd world country to find home prices as low as the US.
So here we are….possibly the lowest prices we’ll see for a while coupled with the lowest interest rates in 45 years….sounds like the right time and formula to start connecting with a good REALTOR® and see what’s out there for real estate options.