Realtors see leveling in housing market this spring

June 13, 2009 6:00 AM

PORTSMOUTH — Year-over-year residential home sales in New Hampshire dropped 6 percent, from 937 sales in May 2008 to 881 in May 2009.

"After a nearly four-year period of consistent and substantial monthly decreases, we remain optimistic that we're seeing signs of a recovery in the housing market," said New Hampshire Association of Realtors President Paul Sargeant.

"Our members are generally experiencing an increase in activity that is giving us hope."

Comparing only March through May this year to the same period in 2008 shows a drop of 3 percent, which Sargeant cited as a positive sign.

"In terms of sales data, we had a real tough January and February," he said, "but since then we've seen something of a comeback."

The recent activity, Sargeant acknowledged, is likely the product of several factors, including low interest rates, high inventory, bank-owned properties and first-time homebuyers spurred into the market in part by the $8,000 tax credit for those who have not owned a home in at least three years.

Those same factors helped push prices down to a median of $200,000 in the first five months of 2009, a 16 percent decrease from $237,500 in the same period of 2008.

The May median price of $210,000 represents a 13 percent drop from the $242,000 in May 2008.

Sargeant said low prices should not be viewed as an altogether negative force, considering the opportunity such a market presents to those who might otherwise struggle to enter into homeownership.