National and Southern New Hampshire Real Estate Gets a Makeover

When home values started dropping in 2007, a lot of homeowners panicked and immediately began putting their houses on the national and Southern New Hampshire real estate markets. The supply of homes for sale rose to a staggering amount and prices dropped lower, fueling more homeowners to “get out while they still could.”  However, as 2009 rolled to a close, a new trend emerged that may mean a calming of the panicked markets.

Meet the Nesters

During the real estate boom, house flippers popped up everywhere. In fact, flipping houses became such a big industry that cable channel A&E began producing “Flip This House” for those who wanted to try it themselves. Houses had become short term financial investments with very low upfront cost, traded in regularly for the latest model or for immediate cash as prices rose swiftly and equity gain seemed automatic. However, as prices dropped for national and Southern New Hampshire real estate, investors found their investments failing.

So, if you can’t count on building equity with a property, you can’t invest in a home without putting some of your own money into it and you can’t flip homes in a short time frame with little time/effort/money invested, what good are they? Ask the "nesters," who’ve decided that a home is something to hold on to and a good investment in the long run.

2009 showed a 20% increase in the first three quarters for home construction according to NAHB (National Association of Home Builders), and another 8.7% increase in the last quarter of the year. The amount spent on remodeling in 2009 hit $114 billion by October. What are these nesters doing?

While some paying for remodeling are trying to raise the quality of their home to sell it, most are fixing it up to live in. Most people move to get more space, but these nesters would rather expand the place they live in than buy a new home. As well, many contractors believe the number of home improvement bids have gone up thanks to the $1,500 energy tax credit for raising the energy efficiency of a home.

Whatever the reason, the rise in nesters may mean an evening out of the housing supply. Although the national and Southern New Hampshire real estate markets may not stabilize immediately, a drop in the number of homes hitting those markets could make all the difference in a housing recovery.

If you’re looking for a beautifully remodeled home, I can help.  Browse properties on my website: www.DaveHeeter.com or contact me at 603-821-1134 or dave@daveheeter.com for more information.