New Hampshire might be best known for having the first presidential primary in election years, but the state may also soon gain a reputation for dodging much of the fallout of the financial crisis. As the unemployment rate climbs in many areas of the country, New Hampshire is holding its own on the job front with one of the better unemployment rates.
However, mortgages that were made to home buyers that should have never considered buying homes were handed out aggressively in New Hampshire leading to an onslaught of foreclosures. The widespread crisis has led to plummeting home prices causing havoc with the New Hampshire housing market.
In the state’s largest city, Manchester is seeing a surge in home sales as a result of the lower prices, near record low interest rates and the first time buyers’ tax credit. The expansion of the tax incentive should get more buyers into the market before the tax credit expires. However, even as housing sales rise, prices are declining in Manchester and are forecast to drop an average of 6.8% in 2010.
Outside of Boston in Nashua, housing sales are also up after the community sustained more than a two-year slowdown. A less urban atmosphere is what many commuters count on moving to Nashua and a lower cost of housing. Prices have been on the downside for more than a year. Home sales are projected to rise in 2010 on average forecast deflation of 6.2%.
Any drop in prices should be out lasted by demand in Nashua, especially after home builders get back to work on new developments in the area. A high number of retired high net worth individuals strengthen the community’s economy.
Home sales also took an up tick in Portsmouth, where some of the least expensive homes in the state may be found. Bankers are slashing prices on foreclosures to get properties sold before another round of foreclosures projected to hit early in the year reach the market. The weakness developed in the market by an over abundance of foreclosures will send average home prices lower a forecast 6.9% in 2010.
In Concord, the state’s capitol home sales haven’t been as vigorous as elsewhere, but bargains that are priced low enough to attract investors and contractors are selling at a healthy clip. Job losses may develop to be Concord’s biggest problem as the state faces economic hard times. Concord housing prices are forecast to deflate 7.4% through the year.
New England style homes grace the streets of Dover, where home sales have been improving. However, given the current economic uncertainty many buyers are holding off buying decisions to see just how the economy does in New Hampshire, which has a history of being less than robust in economic cycles. Dover housing prices are forecast to decline an average of 6.3% in 2010.