The pain of the housing meltdown is just beginning to hit New Hampshire. The state has nearly a two year inventory of houses on the market for sale and foreclosures are climbing.
At best economic analysts with Housing Predictor see New Hampshire's economy weakening in the recession, sending the housing market into a long lasting downward spiral that will make it more affordable for buyers of new homes.
New Hampshire is faring better than the majority of the country. The state's unemployment rate is better than the national average and better than the rest of New England. While there have been thousands of foreclosures in New Hampshire, defaults have not been as high as other states.
In Manchester, the state's largest city, home sales are slow and prices are declining. The market stalled for a while but lower prices with a growing foreclosure market have triggered sales, especially in the lower price ranges. Manchester has seen housing prices only fall 20% on average so far.
 |
| City |
Forecast |
| Manchester |
− 9.9% |
| Nashua |
− 10.4% |
| Concord |
− 9.6% |
| Dover |
− 6.4% |
| Portsmouth |
− 7.8% |
However, with slower sales and financing less favorable for buyers the market will continue to unwind and is forecast to deflate the average home price 9.9% through 2009.
Nashua is a bedroom community for Boston in New Hampshire that has seen long lasting growth as more and more commuters sought a suburban quality of life. But as the Boston economy has felt pain from the nation's economic crisis so has Nashua real estate. Nashua is forecast by Housing Predictor to deflate further in housing values through the year and average a 10.4% loss.
New Hampshire may do better during the current slowdown than many other places since it does not rely on one or two large employers to drive the economy. The state also has a high percentage of entrepreneurs and is a haven for retirees who have plenty of money.
The sales of homes in Portsmouth have also slowed, but the community has one of the highest percentages of free and clear properties in the state, which strengthens the marketplace. However, foreclosures are still taking place, weakening the housing market, which is forecast to deflate 7.8% through 2009 on average.
In the state's capitol, Concord home sales are slow, but the bargains are selling at a fairly decent rate as buyers get the best deal they can on homes they can afford. As the recession worsens, however, so will Concord housing sales through the year, forecast to deflate 9.6%.
Dover is a hamlet looking place with old New England style homes. Sales are soft and are expected to remain that way through the recession, but the shift in buying habits isn't necessarily all bad news for the local economy, which has been boosted by many retirees, who would rather not have much growth. However, due to foreclosures and a weakening marketplace housing vales are forecast to fall 6.4% on average in 2009.
