What Are Dover NH Buyers To Do?
The law of supply verses demand is perfectly exemplified in a real estate market. When demand is high and inventory is low, prices go up. The Dover NH real estate market is a classic example. Study this chart I put together showing home sales, days on market, and new listings for the first half of each of the last four years. We see homes selling faster with days on market averaging 64 days. New listings coming to the market are pretty steady over the last three years however, homes sold are off 20 units compared to this time last year. Demand is up and new listings are steady so why are sales going down?
Dover Sellers Have The Advantage
Because prices are going up as inventory tries to keep up. Looking at the next chart I created showing Median asking price, Average sold price, and Median sold price in the first half of each year, we see prices actually went down last year. Buyer’s caught on and with a 33% increase in homes sold in 2016, sellers and their agents realized quickly that demand had stripped inventory and they could now ask more for their properties. Looking at median asking price and median sales price for the first half of this year, we see sellers are getting their asking price and therefore punching prices skyward. Home prices have jumped 23% so far this year. If you are thinking of selling your Dover NH home, this is probably the best time if not a super good time to sell for the foreseeable future. Here’s why…mortgage rates have been at the lowest levels in history over the last few years and they are going to go up. When and how fast is still a mystery but the fact of the matter is that when rates go up, buyer’s purchase power goes down. This will weed out many potential buyers going forward. I will highly recommend hiring a local expert Realtor® who knows the market when you are ready to sell.
Will Dover’s Market Self Correct?
Last year new construction sales were only 6% of the market. New construction sales make up 15% of Dover’s market this year and let’s face it, new homes cost more. This helps push median sales price upward. The problem for buyers isn’t just the inventory and prices. As home prices are escalating in a market, bank appraisers will use historical data for their opinions of value. They are looking back at home prices that don’t jibe with current sales. So there is danger in a contract for sale that won’t appraise high enough. This will mean buyers will have to walk away because they can’t secure financing or they may have to bring more money to the table at closing. If Dover home prices keeping edging up, buyers will get discouraged and look elsewhere. When enough buyers decide Dover is too expensive, the market will correct itself however, at this point, Dover is in high demand. Search here for => Dover NH Homes For Sale
This Report Brought To You By Marty Patrizi
Marty is a Realtor at The Bean Group Dover NH. He has been helping folks buy, sell, build, and renovate homes since 1988. If you are looking for a compassionate professional with integrity to help you achieve your real estate goals, call or text Marty at 603-781-4099 or email firstname.lastname@example.org. See what Marty’s clients are saying => Testimonials