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I've been looking on Zillow and Realtor.com for houses on a few acres mostly in Hillsborough and Cheshire Counties and I've noticed that the asking prices have gone way up. It's not a favorable time to buy. I blame the Federal Reserve for this. They've knocked down 30 mortgage rates to 2.99% allowing realtors to jack up asking prices and more families to qualify for big mortgages. Too bad.
There are many reasons why sale prices on homes in Hillsborough and Cheshire are high, not all trace back to mortgage rates, there's also unrest and COVID (If you can work-from-home, why not live in a no-income tax state?). Rental prices are also higher year-over-year.
Union-Leader blames high prices on lack of inventory -- not so much too many buyers as too few sellers.
Rising prices is a long term trend, this infographic is from 2019:
There are many reasons why sale prices on homes in Hillsborough and Cheshire are high, not all trace back to mortgage rates, there's also unrest and COVID (If you can work-from-home, why not live in a no-income tax state?). Rental prices are also higher year-over-year.
Union-Leader blames high prices on lack of inventory -- not so much too many buyers as too few sellers.
Rising prices is a long term trend, this infographic is from 2019:
One made out far better if they had the funds to buy in 2011. Prices are now edging beyond the real estate bubble years of 2004-2007 in the last couple of years...
I'm glad I bought in a semi-rural area last year before all of these issues transpired this year unfortunately. My property has gone up $25-30K in one year according to Zillow, which I don't always trust as being accurate on various property details across the board. It also lists the year my house is built erroneously.
It's not "realtors jacking up prices." Real estate agents can give advice, but ultimately they follow the instructions of their clients.
Yes, the Fed has created mass inflation over the past twelve months, and a symptom of inflation is rising asset prices, including real estate. However, there are more significant things at play which are causing prices to rise. First is that for years there has been a migration trend of tax-payers from high-tax and high-regulation states, to low-tax and low-regulation states. Since NH ranks as the 5th lowest in SALT, it has been a beneficiary of this migration trend. Second is an "urban flight" where U.S. citizens have been wanting out of dense metro areas, for suburbia or rural America. These two trends were already present, but have been exacerbated by civil unrest in the metro areas, the plandemic, and the ability to work from home. People were already fleeing cities in high-tax states, but now there is a greater urgency because they have realized that when SHTF, cities are not the place to be.
Zestimate is computed from sales nearby, not all of which are comps, so it's always wrong
Quote:
Originally Posted by GraniteStater
One made out far better if they had the funds to buy in 2011.
When I was house shopping Hillsborough county in 2010, it was quite the opposite of today. Many homes had been on the market for 6+ months and I didn't encounter any competitive bidders.
Quote:
Originally Posted by GraniteStater
My property has gone up $25-30K in one year according to Zillow, which I don't always trust as being accurate on various property details across the board.
Zillow's estimates are all over the place, they show my home as down $20K from a year ago, however I just had a formal appraisal (for refi) and it came back well either the old or the new number on Zillow.
When you "claim" your house you can edit most details (including construction year), add (or delete) photos, etc.
It's not "realtors jacking up prices." Real estate agents can give advice, but ultimately they follow the instructions of their clients.
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And ultimately, people can ask whatever they like, but if there are no buyers at that price, it does no good...so if prices overall have climbed, I'd say there must still be demand at those prices.
Besides low mortgage rates increasing buying power and therefore increasing demand, a realtor in Maine told me a few months ago that the inventory of available properties on the market there was low...so you had high consumer demand and low product supply together, which supports high prices... is the availability of properties in NH also relatively low?
"This is the lowest inventory we’ve ever seen in New Hampshire"
Quote:
Originally Posted by OutdoorLover
a realtor in Maine told me a few months ago that the inventory of available properties on the market there was low...so you had high consumer demand and low product supply together, which supports high prices... is the availability of properties in NH also relatively low?
See the UL article I linked to upthread:
Quote:
Originally Posted by Nonesuch
Union-Leader blames high prices on lack of inventory -- not so much too many buyers as too few sellers:
“Prices continue to increase as a simple product of supply and demand,” said Dave Cummings, director of communications for the New Hampshire Association of Realtors. “This is the lowest inventory we’ve ever seen in New Hampshire, yet there are still plenty of buyers. Multiple offers naturally means escalating prices.”
Look at this insane graph. Three, four and five years ago the homeownership rate was the lowest since the 1960s. It started creeping back up over the past fews, but this year has skyrocketed. I think a lot of this has to do with people who were making good money and renting in the dense metro areas, abandoning their rentals and purchasing homes in the suburbs or rural areas. My prediction is that over the next few years dense metro cities in high-tax states are going to have their tax base and financial situation obliterated. Hopefully the Feds do not bail out the states, so that states are not rewarded for bad behavior (high taxes, stay-at-home orders, lockdowns, closing of businesses, etc.)
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It isn't just the mortgage rate
