| The real estate market in New Hampshire is | | | | Information (11.2%) |
| experiencing a slowdown in 2006. A question that is | | | | Leisure & Hospitality (11.1%) |
| often asked by both home buyers and home sellers is | | | | Other Services (5.5%) |
| "How long will the market be like this?" Although no | | | | Source: New England Economic Partnership |
| one can predict the future, it is helpful to take a look at | | | | Population growth for the state is at 0.9%2, on par |
| what is influencing the market. | | | | with the national average of 1.0% but well above the |
| People who are making a home buying or home selling | | | | growth of surrounding states. The counties in the lakes |
| decision are often influenced by several factors. | | | | region are expected to have the largest growth |
| - Their job outlook -Will they have one and where will it | | | | through 2010. With increasing population comes |
| be located? | | | | demand for housing. |
| - Home Prices- Influenced by supply and demand, | | | | 2. From Bureau of Labor Statistics obtained from the |
| population trends and interest rates | | | | FDIC "State Profiles" NH Economic Profile Summer |
| - Interest rates- influences home affordability | | | | 2006 |
| So how does the future housing market look for New | | | | Mortgage interest rates are holding steady (just under |
| Hampshire? | | | | 7% for a conventional 30 yr fixed mortgage) which |
| New Hampshire continues to have a strong job | | | | should take some of the downward pressure off the |
| market that is expected to outperform the other New | | | | market. When interest rates increase buyers are more |
| England states and the national average. | | | | apt to hold off buying, or to offer a lower price due to |
| - State unemployment was at 3.4% for Q1 of 2006 | | | | the higher monthly interest payments. |
| - Below the national average of 4.73%.1 Continuing a | | | | In summary, New Hampshire has a growing job |
| trend seen since 2000 and one expected to continue. | | | | market coupled with changes in the types of jobs |
| The New England Economic Partnership (NEEP) | | | | available. This should cause more buying and selling in |
| projects employment growth: | | | | the market as people move with the jobs. There |
| - 0.8 percent in 2005 | | | | should also be an overall increase in the demand for |
| - 2.2 percent in 2006 | | | | housing due to the moderate growth in population. |
| - 1.1 percent in 2006 | | | | Continued low interest rates should enable more |
| 1. From a New Hampshire Economic Outlook | | | | buyers to be able to afford a home. So it seems there |
| Presentation by Erica Menard (May 10,2006) | | | | is no fundamental reason for this slowdown except |
| Although New Hampshire is loosing its manufacturing | | | | for the rising home prices which were out pacing the |
| industry (NEEP projects manufacturing employment to | | | | increase in salaries over the last 3 years. This finally |
| continue to decline an average of 0.4% through 2007) | | | | caught up with us. As home prices stabilize or even |
| other industries are growing. The industries that are | | | | come down a bit it should allow potential home buyers |
| expected to grow over the next 5 years are: | | | | to catch up. This slowdown may not last for very long, |
| Professional & Business Services (15.2%) | | | | perhaps only until the spring of 2007. But again, no one |
| Education & Health Services (14.8%) | | | | can foretell the future. |