Wednesday, August 18, 2010
Post-credit, NH home sales off 32%
By ASHLEY SMITH
Staff Writer
The first data have arrived that provide a glimpse into the impact of the first-time homebuyer tax credit on the New Hampshire real estate market.

In July, the first month in nearly 18 without closings initiated by the federal program, home sales plummeted 32 percent year-over-year, according to data from the New Hampshire Association of Realtors. Only 811 homes sold statewide, compared to 1,188 in July 2009.

The decline was not altogether unexpected, according to association President Monika McGillicuddy, a 25-year industry veteran who works for Prudential Verani in Londonderry.

“There were three weeks to a month following the April 30 expiration date where we were feeling a lull in terms of general activity in the market,” McGillicuddy said in a statement. “That lull in May activity would naturally translate to a lull in July closings.”

The federal program, which lured first-time buyers into the market with $8,000 checks, required a purchase agreement by April 30 and a closing by June 30. The program was originally set to expire after one year on Dec. 1, 2009, but was extended due to its popularity.

Hillsborough County saw an even steeper decline, with home sales falling 41 percent in July compared to the same month last year.

A total of 210 homes were sold, down from 355 last July. All 10 counties saw sales numbers decrease.
The statewide decline comes after nine consecutive months of increases.
However, McGillicuddy cautions against predicting the future based on sales during or immediately after the tax credit.

“The credit was meant to stimulate the market, and we believe that’s a long-term process,” she said. “The excellent conditions for buyers – interest rates, prices and inventory – have not changed, but we’ll have a much better overall sense of the market closer to the end of the year.”

Statewide, the median sales price dipped slightly in July to $219,000, down less than 1 percent from $220,468 in the same month last year.
Average days on the market increased by 9 percent from 121 to 132. Hillsborough County was one of only three in the state to see a price increase, growing 5.8 percent.

July statewide condominium sales, meanwhile, saw a 40 percent unit sales decrease compared to July 2009, while prices fared better than those in the residential market, increasing by 5 percent from July 2009 to July 2010.

According to McGillicuddy, she and other agents have noticed an increase in activity since the slow period in May and are interested to find out whether that “translates to an increase in sales in the near future.”