By John Robinson
Has the housing market turned around? Local real estate agents say it has - or at least it's bottoming out.
"If you looked at home sales on a chart, we're somewhere near the bottom of the saucer," said Steve Brown of RE/max First Choice Realty in Londonderry, where he focuses on properties in Derry and surrounding towns. "It's a golden opportunity if people have the income to qualify for financing."
Real estate agent Mark Oswald works out of the same office and focuses on homes in Londonderry. "We're beginning to see some stabilization in town," he observed. "Last year we were seeing prices falling at one and a half percent per month, and we're not seeing that this year to date."
You might expect real estate salespeople to find signs of hope in the market: after all, their livings depend on people deciding to buy and sell properties. But Brown says objective numbers back up his optimism.
"We sell most of our listings within 60 to 70 days," Brown said. That compares to a shelf life of four to six months seen recently in some towns.
One reason for the newfound stability - or at least, a slowing in erosion - comes from newfound realism among sellers. They're no longer holding out for big profits in real estate transactions. "At some times the market is a beauty contest, and at other times it's a price war. Right now you have to be both to win," Brown said. "You have to be the best house at the best price to sell."
Oswald agreed that the market shifts power to the buyers. "Sellers have to remain objective about things like the condition of their property," he said. "Older homes may not have maintained as well, and sellers have to allow for that in their pricing."
Another factor favoring buyers is tax credits for home purchases. "The economic stimulus package is making its mark with first time buyers," said Oswald. That package includes an $8,000 credit that can be used as part of the buyer's down payment.
Financing also remains inexpensive, if you can get it. "Most buyers are seeing interest rates of six percent or under," said Oswald. "That's still among the lowest rates in years."
But Brown says qualifying for loans is harder. Nowadays, he said, buyers need to document adequate steady income to cover their mortgages. That has put some buyers on the sidelines, including people like him.
"Self-employed people like myself who used to be able to buy a house any day of the week, no longer can," Brown said. "You have to have W2s showing the right income or 1040s that can make the ratios. People who eat up income running their businesses are out of the market."
People with the documentation, credit scores, and down payments, however, are seizing the opportunities. "When a house is priced right, they come out like piranhas," Brown said. "There was a house on the market for three days in Derry last week, there were multiple offers on it, and it sold for $5,000 over its asking price."
