Increase in Bank Foreclosure Buying in New Hampshire
The number of bank foreclosure properties across New Hampshire is being cited as a major contributor to the decline in home prices. Last April, home sales in the state declined by about 11 percent compared to the previous year. However, the number of homebuyers taking advantage of low-cost houses has been increasing.
The increase in home buying activity in the state has led real estate experts to deduce that the housing market is starting to stabilize. New Hampshire Association of Realtors President Paul Sargent said that real estate professionals are hoping that home sales activity will continue to rise so that they could start reducing the large supply of foreclosed homes.
As of last April, the median home sales price in New Hampshire was $204,900, reflecting a drop of 14.6 percent from the same period the previous year. Real estate experts estimated the cost of first homes to be around $200,000.
First-home buying activity across the Lakes Region and Seacoast has increased significantly, helped by tax credit incentives, including the $8,000 for first-time homebuyers. Mariner Realty broker and owner Richard Whitney said that the decline in home prices was enough to allow many potential homebuyers to buy affordable bank forclosure properties.
Meanwhile, New England Economic Partnership demographics forecasts director Peter Francese also noted the significant drop in home prices in the state as the number of foreclosed properties increases.
He said that an estimated 300 houses were being repossessed each month in 2008. The figures consist a significant percentage compared with the inventory of homes on the market. Francese pointed out that if many foreclosed properties are sold, home prices will shoot up and the housing market will stabilize and become more balance.
He added that if the housing market stabilizes, the number of home construction will increase, particularly starter houses, because of the rising number of young people who want to purchase and own a house. The 2000 to 2008 census data tracking age shifts showed a 13 percent increase in the number of residents in New Hampshire aged 18 to 29.
Meanwhile, across the state about 152 bank forclosure properties were sold in Dover, Somersworth, Portsmouth and Rochester. Out of these 152 foreclosed properties, 52 percent were sold for about $200,000 and 24 percent were priced at $150,000.
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