The Manchester real estate market has certainly taken the recovery and run with it. In fact, the city has come a long way from the most recent recession. Prices continue to show encouraging gains, and are now appreciating at a rate of 11.5 percent. That is nearly twice as much as the national average. That said, it is not surprising that the median home price in the Manchester housing market is $237,400; or nearly $35,000 more than the national average. In the past three years alone, homes in Manchester have gained an average of $33,400 in equity
The following highlights how much equity has been gained relative to the year of the home’s purchase:
- Homes purchased in the Manchester housing market one year ago have appreciated, on average, by $27,718. The national average was $15,753 over the same period.
- Homes purchased in the Manchester housing market three years ago have appreciated, on average, by $43,748. The national average was $53,565 over the same period.
- Homes purchased in the Manchester housing market five years ago have appreciated, on average, by $34,523. The national average was $47,444 over the same period.
Surprisingly, high appreciation rates in the last three years have not made homes too expensive. In fact, the Manchester real estate market is still one of the most affordable in the country. Over the first quarter of this year, homeowners spent an average of 9.3 percent of their income on mortgage payments. Despite increased prices, affordability is still below the area’s historical average. Conversely, the national average saw homeowners spending about 14.3 percent of their monthly income over the same period.
Affordability – as high as it is – only gets better when you introduce distressed properties into the buyer pool. Manchester real estate investing knows this better than anyone. According to RealtyTrac, “the median sales price of a non-distressed home was $197,267. The median sales price of a foreclosure home was $150,000, or 24% lower than non-distressed home sales.” That is a savings of nearly $50,000 per home. The difference in price should provide attractive spreads for the entire Manchester real estate investing market.
Of the distressed properties that are currently on the Manchester housing market, 73.9 percent are scheduled to be sold at auction. Despite constituting the majority of distressed properties, auction foreclosures have actually declined 10.5 percent in the last year. The remaining 26.1 percent are all bank-owned, meaning that they are essentially non-performing loans sitting on the books of lending institutions. Regardless of their foreclosure status, these properties represent great opportunities for the entire Manchester real estate investing market.
According to Zillow, “the percent of Manchester homeowners underwater on their mortgage is 27.0%, which is higher than Manchester Metro at 18.9%.”
According to the National Association of Realtors (NAR), Millennials made of the highest percentage of recent buyers. However, as they are less likely to have substantial savings, Millennials are more inclined to gravitate towards markets that are more affordable. For this reason alone, the Manchester housing market should continue to see a lot of activity. Manchester real estate investing, for that matter, should also take note, as first-time buyers will be a priority audience.
With affordability in check, Millennials will also appreciate the area’s local job sector. The employment outlook will continue to drive supply and demand. The unemployment rate in Manchester is currently at 4 percent, which represents a 0.8 percent increase over the course of a year. Even with the huge improvements the national unemployment rate has made, Manchester is in a much better position. It is safe to say that unemployment in Manchester is better than most markets across the country. Manchester really starts to excel when you factor in the job growth rate. Employment growth almost reached 3 percent in the last year, way above the national average. That is particularly encouraging in the face of Manchester’s population growth. In the past 15 years, Manchester has seen the population increase by as much as 4 percent.
The average property in Manchester is worth about $143 per square foot. Appreciation rates increased today’s price per square foot value 6.7 percent from the same time last year. According to Trulia, “the average listing price for homes for sale in Manchester NH was $221,553 for the week ending May 27, which represents an increase of 2.6%, or $5,625, compared to the prior week.”
Stability within the Manchester real estate market is pretty average. Annual residential turnover is hovering around 16 percent. About 37 percent tend to stay in their home for more than five years, but the median year in residency is 3.3.
Of those properties that are in the Manchester housing market, only 6.3 percent are vacant. However, nearly half of the market consists of renters – 48.6 percent to be exact. The remaining 45.1 percent are all homeowners.
Manchester Real Estate Market Summary:
- Current Median Home Price: $237,400
- 1-Year Appreciation Rate: 11.5%
- Unemployment Rate: 4%
- 1-Year Job Growth Rate: 2.9%
- Population: 109,791
- Median Household Income: $53,377