Barrington NH Homes
The Barrington NH homes market is ending 2015 on a high note. As a licensed Realtor, it’s my job to stay up to date on the areas I work in. We look at the Median Days on Market for homes sold to measure demand. Barrington NH homes are selling in 34 days. Going back to 2013, we see homes were selling in 50 days. Barrington NH homes are in high demand. Home sales bumped up 47% in 2012. Sales are still climbing although at a slower pace. This could be due to declining inventory. New listings coming to the market have been declining over the last three years and more homes are selling. This can only result in a reduced inventory which will in turn lead to higher prices.
Barrington NH Price Trends
When looking at price trends, Median Sales Price is a better indicator because Average Sales Price can be artificially skewed by a transaction with an extremely high sales price or an extremely low one. For instance, Barrington NH waterfront properties are among some high flyers. Click here to see => Barrington NH Waterfront For Sale. Median Sales Price is the sales price of the transaction in the middle of all the data with half of the sales having a price above the Median Sales Price and half are below. This indicator rides up and down with the tide of the trend.
Predicting Barrington NH Home Prices
As a Realtor working in the trenches of this market, I can predict Barrington NH home values will continue to rise. This will happen if current inventory trends continue. What I can not predict is whether current inventory trends will continue. Here’s the rub…in any market where the inventory can’t keep up with demand, prices will rise. It’s a simple example of the laws of supply and demand. But are there other factors that could affect price trends? You bet. The biggest one is mortgage rates. For several years we have seen mortgage rates at the lowest levels of our lifetimes. We all know rates are going to go up. We just can’t predict when. I can honestly say rates will be going up and soon. Will they skyrocket from here? Probably not. But why wait? As rates go up, there will be less buyers who can qualify. If fewer homes sell, prices will come down as inventory rises.
Mortgage Rates vs Purchase Power
Let’s say a buyer is looking to keep their mortgage payment under 1,200/mo. At today’s current rate of 4.125% (11/26/2015) and not taking into account taxes and insurance, they can afford a purchase of $257,000. If rates go up one quarter of one percent (+0.25%), they can now afford a purchase of $249,000. That 1/4% increase in the rate results in $8,000 less purchase power. This is a concern for sellers too. Sellers need to understand that going forward in an environment of rising rates, there will be less buyers who can qualify for their property. If you are on the hunt for a first home or a move up home, now may be the last chance to take advantage of the lowest rates of our lifetimes. Here is a link to view the current inventory of => Barrington Homes For Sale
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