Ossipee NH real estate outlook 2010

Written by REALTOR Bill Barbin of Badger Realty

According to economists at Moody's Analytics, what is now being referred to as the Great Recession is technically over. Unfortunately, the harm from this financial downturn was serious enough that it will take more than a year until it feels really over to us regular people.

There's a reason this recession has hurt so many: The economists say it has lasted twice as long and was twice as deep as the average of the past 10 recessions the nation has experienced since 1948. The New Hampshire unemployment rate, which is now 7.2 percent (well below the national median of 10.2 percent) is not forecasted to rise above 7.8 percent before starting to recover sometime next year.

During the first five months of this year, for example, residential home sales were below last year. However, compared to last year the number of homes sold has risen in four out of the past five months. Overall, 2009 home sales edged up a little bit over the same period last year.

Median home prices statewide were still about 7 percent below October of 2008, but the difference is narrowing from monthly numbers that earlier this year ranged between 10 and 20 percent below 2008. This trend indicates that home prices in New Hampshire are stabilizing and will likely begin to increase in 2010.

The expanded home buyer tax credits will almost certainly have a positive effect on home sales and values in the next several months. Also, as home prices stabilize, that will reduce any perceived risk on the part of potential home buyers and encourage lenders to finance more purchases.

New Hampshire has been considerably more fortunate with regard to home prices than many other states. Median home prices statewide are expected to bottom out in 2011 at between 20 and 25 percent or more below their 2005 peak. Given the worst recession in 60 years, that's really something to be pleased about. Several other states have seen home prices reduced by half or more from their peak in 2005.

Indications show that residential home sales are likely to be about the same as last year, just above 10,000 units, and at a median sale price that will be within 10 percent of 2008.

There are some NH and Maine foreclosure or foreclosed - bank owned properties for sale that will make great purchases for the right person. Go to my website at BillBarbin.com and use my NH real estate and Maine real estate mls search windows to see if there is a bank owned property that's right for you.