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As most know, NH saw a significant real estate appreciation and construction period that lasted for a few years this decade. Land prices went through the roof in many areas in the southern and central part of the state. Scarcity in the boom years led to a construction boon and bidding wars on properties. I watch the real estate market very carefully and I have noticed many disturbing trends around the state in terms of foreclosures over the past couple of years. Of course, many other states are having even more severe problems.
However, the situation in NH in terms of property is more complex due to the ever present property tax issue that can greatly impact those that experience a loss of employment and income. The most financially disadvantaged towns in NH continually experience the greatest property tax burden (equalized rates). The problem is very severe. For example I saw a property that was listed fairly recently online that was listed for under 170K with property taxes of 8.8K. That is absolutely insane!
How has the RE market fared in your local area or county? Have prices continued to drop or have they held up fairly well?
I am not in favor of any tax increases or new taxes as I lean highly localistic when it comes to spending issues, but the property tax situation in NH is in no way sustainble in the long-term- not when 2/3 of all revenue is derived from one source.
Disclaimer: I am not living in NH anymore due to employment reasons, but would like to move back very much if a position opens up in my career field.
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It was a foreclosure property in Jaffrey that is actually listed for 159K! "It could qualify for a rehab loan." OUCH!! Taxes are listed at over 8.7K. It is no wonder why some towns in the Monadnock Region are in fairly big trouble.
Can anyone else post about local RE conditions currently throughout NH?
I've seen a lot of "sold" signs in Hollis and Nashua lately- all homes I considered in good shape and well priced. Then there are also some of the SAME houses we looked at when we bought a few years ago still on the market- but they were crappy then and the price hasn't come down...so no surprises there.
One thing I've noticed is the houses that sell may not be the most affordable for their size but there are some things that set them apart:
-Clean/maintained landscaping (not necessarily expensive, just cared for)
-Clear/maintained home (see above)
-Updated decor (ie, dark green deer-mount wallpaper doesn't seem to sell well)
In short, they are all houses you look at and go "this place was well taken care of and I could move in without doing much".
On the "expensive homes" side it really amazes me. Some selling for $900k have been on the market forever and are just...amazingly mediocre. No more impressive/well designed than homes 1/2 that price; bigger sure- but not THAT much bigger. When I see a price tag like that I expect some "wow" rooms and a definite "wow" kitchen. Homes that have those "wow" factors and are expensive- guess what? They sell. Those that don't may be even bigger...but they are just sitting on the market.
RE taxes, the town's appraisal is separate from the real estate sales price, but when the house does sell, the savvy new owner will likely apply for an abatement and get the house reappraised. Since the tax appraisal is only done every X years unless someone applies for that abatement, the current bill is likely based on an out of date appraisal. Often sellers don't apply for the abatement because they think buyers will think they're getting a deal ("look, the town appraised the house for 500k and it's selling for 300!") but buyers can get the taxes lowered if they can prove the appraisal is disproportionate (ie similar houses more recently appraised are appraised at less.)
On the lower end of the scale our condo dripped from its peak price to something reasonable. The assessment is in line with the expected price. That is OK with me.
We moved here 26 years ago and paid what we could afford (very little) for the condo. The rapid increase in property values has continuously outrun my increases in salary. One of the results is we have not been able to afford a freestanding house. On the other hand I have not had to waste my off time mowing the lawn, fixing siding and roof, or painting the outside of the place. That time has considerable value to me.
My next door neighbor went broke in 2007 but has lived in the foreclosed property without paying the condo fee. That is very annoying to me and the rest of the unit owners. Finally the bank bought him out and are forcing him to move. I expect the bank will pay the back fees. I wonder how long it will take to sell the place.
I'll base my reply on my elation at the taxes I pay in NH. I have only lived up here a year.
Madison is $13.65 per thousand assessed for 2009. Some say that is high.
I pay $2260 a year, for a 3/4 acre lot, and an 1800 sq. home. VERY affordable in my eyes.
Here's why I love it
My NJ residence was a 2450sq. home, on a 50x150 lot...that's feet folks, NOT acres.
My NJ residence was a 2450sq. home, on a 50x150 lot...that's feet folks, NOT acres.
My older home back in NJ was a 1600 SF Colonial built in 1916. 50 X 150. Taxes are currently about 8K. Not that far from what I'm paying up here. Of course a few years ago a 50 X 100 lot was going for 400K. But at least in the northern NJ area, there are no buildable lots so older homes are taken down and new ones erected. Plus residents in those areas demand more in the way of services. There is no way most towns would tolerate taking trash to a recycling center. They won't even settle for a one day per week pickup.
The property I bought in December is just a small fixer-upper in Bedford. 1.2 acres, 4 br 3 ba (one full, one half, one 3/4). 1800 sqft. Taxes are $5280/year.
I can say that the value of the home has dropped. Not sure how to file for an abatement other than the town offices? The assessor listed the property for tax purposes @ 273k in 2007, the current value is probably under 230k
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It is no wonder why some towns in the Monadnock Region are in fairly big trouble.
