"We saw prices continue to climb up to the end of the second quarter of 2005," Monier says.
"The median purchase price for a new home, including condominiums, was $294,000, while existing units, including condos, went up to $235,000. The days of finding a house for $100,000 are long gone and, in many parts of the state, the same can be said for the $150,000 home.
However, Monier says the Multiple Listing Service in NH, or MLS, is showing that homes are staying on the market longer than this time last year. "There are also more listings than this time last year, which suggests that housing is starting to cool off" Monier says.
This may start stabilizing housing prices. With income increases not keeping up with home prices and interest rates slowly creeping up, there is a smaller pool of potential buyers for home, Monier says.
"I think the prices will hold steady for lower-to-middle income homes," she says. "The only sector that I believe will see a contraction will be luxury homes."
Monier cautions that this is all speculation and that many factors could affect the market. "However, absent of those factors, the housing market looks like it will stabilize next year."
Copyright 2005 BusinessNH Magazine
