A national report on housing released Thursday found that sales are up, but prices are down.
And in New England, economists are also forecasting declining real estate prices in the region.
New Hampshire Public Radio’s David Darman has more.
The New England Economic Partnership, or NEEP, forecasts a 12 percent decline in house prices in New England.
And they say New Hampshire will experience a decline about the same size.
Professor Ross Gittell of UNH is vice president of NEEP.
He says the declines were sure to come after a period of sharply rising prices.
There was double digit annual growth in median housing prices from 2002 to 2004. And this was in the context of a slow growing economy I think there was over exuberance in the housing market and now there’s a correction taking place.
The New Hampshire Association of Realtors says the state has experienced a significant drop in the number of houses sold in the last couple of years.
But they claim average house prices from 2005 through 2007 have barely budged.
Peter Francese writes a column for the Realtors and is also a NEEP analyst.
He says like his NEEP colleagues, he also sees declining prices.
But he also says different segments of the house market are reacting differently to pricing pressures.
If it’s a two hundred and fifty thousand dollar home or a two hundred thousand dollar home, I don’t see any degradation in the price at all. If it a nine hundred thousand dollar home, you know its possible, it might only sell for 8-50, or what’s ten percent less, 8-10. I mean, its entirely possible.
The NEEP officials and those at the Realtors Association agree that it’s taking longer for owners to sell their houses in 2007.
They say that trend will probably continue, and that owners will probably drop prices for houses that don’t sell when they can’t find a buyer.
