In recent years, the New Hampshire housing market has experienced consistent growth, with increasing demand for homes and rising prices. In 2023, home values are expected to rise by a moderate amount, continuing the current market trend. New Hampshire is a desirable location for both homebuyers and real estate investors due to its low unemployment rate and prospering economy. This blog will examine the most recent housing market trends and data in New Hampshire and provide a forecast for purchasers and sellers for the upcoming year.
New Hampshire Housing Trends for 2023
The housing market in New Hampshire has been experiencing significant changes in recent times. According to Redfin, in April 2023, home prices in New Hampshire were up 7.1% compared to the previous year, with a median price of $435,300. However, the number of homes sold saw a decline of 24.7% year over year, with only 1,047 homes sold in April this year compared to 2,438 homes sold in April last year. The median days on the market increased to 32 days, a 12-day increase compared to the previous year.
Median Sale Price of All Home Types
The direction and pace at which home prices change serve as indicators of the strength of the housing market and the affordability of homes. Currently, the median price of a home in the United States stands at $435,300.
New-Hampshire Housing Supply
One crucial factor in the housing market is the availability of homes for sale to meet buyer demand. In April 2023, there were 2,961 homes for sale in New Hampshire, marking a 30.6% decrease compared to the previous year. The number of newly listed homes also saw a significant drop of 50.9% year over year. The average months of supply remained stable at 2 months.
New-Hampshire Housing Demand
The level of competition in the housing market provides insights into its overall dynamics. In April 2023, 54.9% of homes in New Hampshire were sold below the list price, indicating a decrease of 12.2 points compared to the previous year. On the other hand, the percentage of homes with price drops increased to 10.8% from 9.0% in April last year. The sale-to-list price ratio also experienced a decline of 2.7 points, reaching 101.6%.
Homes Sold Above List Price of All Home Types
When homes sell above their list price, it often signifies a competitive market with multiple offers. Currently, 54.9% of homes in the United States are selling above their list price, indicating a highly competitive market with a prevalence of bidding wars.
Top 10 Most Competitive Cities in New Hampshire:
The following are the top 10 most competitive cities in New Hampshire, ranked based on Redfin's Compete Score™:
- East Merrimack, NH
- Pinardville, NH
- Derry, NH
- Nashua, NH
- Hudson, NH
- Rochester, NH
- Durham, NH
- Londonderry, NH
- Milford, NH
- Somersworth, NH
What Lies Ahead for Buyers and Sellers:
Home prices in New Hampshire are likely to continue increasing, albeit at a slower rate compared to the past year. The limited supply of homes for sale could result in more competition among buyers, leading to potential bidding wars. With the decrease in newly listed homes, sellers may have a greater advantage in negotiations and may be able to hold out for higher offers. Buyers may need to act quickly and be flexible in their expectations to secure a home in this competitive market. Overall, the New Hampshire housing market remains strong and continues to be a seller's market.
New Hampshire Housing Market Forecast 2023-2024
The housing market in New Hampshire has been dynamic and resilient, showing positive trends in recent years. According to Zillow, as of April 2023, the average home value in the state stands at $435,384, representing a 4.8% increase over the past year. Additionally, homes in New Hampshire are going under contract and pending in an average of only 7 days, indicating high demand and a fast-paced market.
When considering the median sale-to-list ratio, which measures the percentage of the listing price that homes are actually selling for, New Hampshire shows a strong performance with a ratio of 1.000 as of March 31, 2023. This means that, on average, homes are selling for the full listing price.
In terms of sales prices, the market has seen significant activity, with 48.6% of sales occurring above the list price and 39.8% below the list price as of March 31, 2023. This indicates that there is still some room for negotiation and opportunities for buyers to find homes below the initial listing price.
Looking ahead, the housing market forecast for various metropolitan statistical areas (MSAs) in New Hampshire also appears promising. Here is a glimpse of the forecasted changes in home prices for select MSAs:
- Manchester, NH: The forecast predicts a 0.4% increase by May 31, 2023, followed by a 0.9% increase by July 31, 2023, and a significant 4.1% increase by April 30, 2024.
- Concord, NH: The forecast indicates a 0.5% increase by May 31, 2023, a 1.2% increase by July 31, 2023, and a substantial 5.7% increase by April 30, 2024.
- Keene, NH: The forecast projects a 0.6% increase by May 31, 2023, a 1.4% increase by July 31, 2023, and a notable 6.3% increase by April 30, 2024.
- Laconia, NH: The forecast anticipates a 0.4% increase by May 31, 2023, a 0.9% increase by July 31, 2023, and a steady 7.1% increase by April 30, 2024.
- Berlin, NH: The forecast suggests a 0.5% increase by May 31, 2023, a 1% increase by July 31, 2023, and a gradual 7.7% increase by April 30, 2024.
These forecasts indicate positive growth and potential appreciation in home values across different regions of New Hampshire over the coming months and years. It's important to note that these projections are subject to various factors such as economic conditions, market dynamics, and local influences, and may not be precise predictions.
Overall, the New Hampshire housing market is showing strength and resilience, with increasing home values and a relatively fast-paced market. This presents opportunities for both buyers and sellers in the state's real estate market.
Sources:
- https://www.redfin.com/state/New-Hampshire/housing-market
- https://www.rent.com/research/average-rent-price-report/
- https://www.zillow.com/nh/home-values/
- https://www.nhhfa.org/publications-data/publications-reports/
