Real Estate Market Update:
This week, the current average interest rate for a 30-year fixed purchase money mortgage is 7.13%, increasing 36 basis points over the last two weeks. If you're planning to refinance, the current average 30-year fixed refinance rate is 7.12%, increasing 25 basis points from two weeks ago.
This week, the current average interest rate for a 30-year fixed purchase money mortgage is 7.13%, increasing 36 basis points over the last two weeks. If you're planning to refinance, the current average 30-year fixed refinance rate is 7.12%, increasing 25 basis points from two weeks ago.
Meanwhile, today's national 15-year refinance rate is 6.37%, up 25 basis points from two weeks ago.
Meanwhile, today's national 15-year refinance rate is 6.37%, up 25 basis points from two weeks ago.
Source: Bankrate.com
Source: Bankrate.com
What does this mean to investing in New Hampshire?
What does this mean to investing in New Hampshire?
Image source: NHAR.com
Analysis: In the last 2 months, New Hampshire has seen median sales prices decline by $10,000, and closed sales have fallen from 626 in January to 559 in February.
We are also seeing sales volume in millions falling from 330M in January to 273M in February. This represents a decline of nearly 19% year over year, and a substantial reduction statewide from January to February. Pending sales volume is also down month over month.
What does this mean to us as investors?
Stick to these rules of thumb:
1) Create and stick to your buying criteria. For years, mine was this simple: Duplex, 10-15% below market, major systems under 5 yrs old, in a college town. Needing minor cosmetic updates is ok. This allowed me to house-hack and purchase new properties each year.
2) Invest in areas where population is increasing. Overall, New Hampshire population has grown by ~.5% each year for the past few years... which is great news, as this keeps demand for new housing higher than in areas with declining population.
3) Stick to areas with excellent employment opportunities, and those areas with alternative demand for housing - Ex: Dover NH has hospitals, manufacturing, and retail to drive demand, but it also has the University of New Hampshire just next door in Durham, NH - this creates a hedge against downturns in the market and helps to keep demand high for rental housing in the Seacoast Region.
4) Focus on locations that have something that sets it apart from other regions. An example of this would be the communities of the "Lakes Region" which surround Lake Winnipesaukee, which is unmatched in its beauty, and attracts long-term tenants, as well as tourists who come to the area to enjoy the natural beauty of the region...in this case, it helps support short-term rentals as well.
Check out our 'Learn More about New Hampshire' link below to learn more about why New Hampshire is an excellent area to invest!
Image source: NHAR.com
Analysis: In the last 2 months, New Hampshire has seen median sales prices decline by $10,000, and closed sales have fallen from 626 in January to 559 in February.
We are also seeing sales volume in millions falling from 330M in January to 273M in February. This represents a decline of nearly 19% year over year, and a substantial reduction statewide from January to February. Pending sales volume is also down month over month.
What does this mean to us as investors?
Stick to these rules of thumb:
1) Create and stick to your buying criteria. For years, mine was this simple: Duplex, 10-15% below market, major systems under 5 yrs old, in a college town. Needing minor cosmetic updates is ok. This allowed me to house-hack and purchase new properties each year.
2) Invest in areas where population is increasing. Overall, New Hampshire population has grown by ~.5% each year for the past few years... which is great news, as this keeps demand for new housing higher than in areas with declining population.
3) Stick to areas with excellent employment opportunities, and those areas with alternative demand for housing - Ex: Dover NH has hospitals, manufacturing, and retail to drive demand, but it also has the University of New Hampshire just next door in Durham, NH - this creates a hedge against downturns in the market and helps to keep demand high for rental housing in the Seacoast Region.
4) Focus on locations that have something that sets it apart from other regions. An example of this would be the communities of the "Lakes Region" which surround Lake Winnipesaukee, which is unmatched in its beauty, and attracts long-term tenants, as well as tourists who come to the area to enjoy the natural beauty of the region...in this case, it helps support short-term rentals as well.
Check out our 'Learn More about New Hampshire' link below to learn more about why New Hampshire is an excellent area to invest!
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