Real Estate Trends – Derry, New Hampshire

Introduction:

We and back for our latest real estate market trend report.  If this is your first time reading one of these reports, what we do is examine real estate market in a city or town in Massachusetts or New Hampshire to evaluate the current conditions.  We do this by looking at the changes in several key metrics year over year for the town to see how the market has changed and then evaluate what those observations mean for that market moving forward. 

Today we are highlighting Derry, NH in Rockingham County

 

Know as “Spacetown” since it is the home town of Alan Shepard the first American in Space and later the oldest person to walk on the moon (and a distant relative of mine :) ).

Market Trends in Derry, NH – March 2014 and 2015:

The Derry, NH market appears to be down a lot since last year.  Both the average listing and average sales prices were down a large amount.  In addition to that the days on market are up quick a bit as well.  Inventory was also up quite a bit from 15 sales in March of 2014 to 23 in 2015. 

Average Listing Prices:

The first thing we are going to look at is the average listing price.  For Derry, NH the average listing price in March 2014 was $278,067.  This was down a bit to $257,577 in March 2015.  That gives a decline of 7.37%. 

Average Sale Prices:

The next thing we will be looking at is the average sale prices.  The average sale price for Derry, NH in March of 2014 was $278,452 and in March 2015 that was down to $251,600.  That gives a noticeably larger decrease of 9.64%.  With sale prices falling more than the listings local agents are chasing the market down which is further supported with what we will see about the day on market next.

Average Days on Market:

Finally we look at the average days on market, the measure of how long it takes for a house to sell in the current market.  For Derry, NH the average days on market in March of 2014 were 81.36 and the average days on market for March 2015 were 83.83, for a meaningless 3.04% increase. 

However, as we have seen so many times in our previous posts for AbingtonBedfordSeekonk, BelmontTopsfieldCanton,  Dracut (Condos)HamiltonWakefield, Amesbury (Condos), Dracut #2, Taunton, Reading, Stoughton, Wrentham, Stoneham, Dedham, Nashua, NH, Tewksbury, Brockton (Multifamily), Lowell (Multifamily), Acton, Foxboro, Pembroke, Chelmsford, Beverly,  Framingham (Condos), Plymouth County (Condos), Marlborough, Billerica, Waltham, and Dracut (Condos) #2 outliers in the data can really skew these numbers.  This again this is the case for Derry, NH.  In this case there was a very high days on market house in the 2014 data.

In 2014 there was a house with 440 days on market.  This accounted for over 36% of the total days on market for all 15 houses.  When removed the new calculation for the remaining 14 houses gives an average days on market of 55.71, a very significant decline.  Using this adjusted number we see the very small increase now become a fairly large 50.48% increase.  This does alter the observation somewhat.  While the basic conclusion that the days on market are up is the same it changes it from being a fairly insignificant change to being a pretty important increase.  This is also more consistent with the data on the declines in prices, as you would expect houses to take longer to sell when they are priced to high for the current market.

Derry, New Hampshire Summary:

The Derry, New Hampshire real estate market looks like is has dropped significantly since last year.  The sizable drops in listing prices and sale prices as well as the significant increase in days on market illustrate this point pretty clearly. 

In summary if you are looking to sell a house in Derry, NH now you should expect to get a bit less for it than you would have last year.  You should also seriously consider taking a discount off your expected price to avoid sitting on it for a long time. 

 

Do you need to sell your Derry, New Hampshire house fast?  If you would like to sell your home fast and hassle free schedule a consultation with us today.

Please share your questions and comments below.

 

 

 

(Image credit: Alan Shepard via Wikipedia)