The New Hampshire housing market leans towards being a balanced market. Sellers may find favorable conditions with increased demand and competitive sales, while buyers navigate challenges posed by limited inventory and rising home prices.
New Hampshire Housing Market Trends in 2024
How is the New Hampshire housing market doing? The National Association of REALTORS (NAR) anticipates a significant boost in home sales in 2024, projecting a 13 percent increase. Early indications in New Hampshire, as highlighted in the NHAR Monthly Indicators market report for January, suggest a positive trajectory.
Consecutive Rise in Pending Sales
In a noteworthy shift, New Hampshire experienced a second consecutive month of increased pending sales in January 2024. This metric reflects the number of single-family residential properties with accepted offers, marking a departure from the trend observed since April 2021.
Upward Movement in Closed and Pending Sales
January 2024 witnessed a simultaneous uptick in both closed sales (5.6 percent higher than January 2023) and pending sales (a 4.2 percent increase). This dual surge in activity signifies a potential turning point in the state's real estate landscape.
Unique Market Dynamics
While it is premature to label this as a definitive trend, the market's behavior deviates from the patterns seen in recent years, according to 2024 NHAR President Joanie McIntire. The key question remains whether New Hampshire can overcome the challenges of limited inventory and affordability.
Continuation of Long-Term Trends
January 2024 maintained the trajectory observed over the past few years. The number of single-family residential homes available for sale in New Hampshire decreased by 3 percent compared to January 2023, reaching a total of 1,270. Additionally, the median home price in January set a record at $445,000, reflecting the ongoing trend of rising home values.
Challenges in Inventory and Affordability
The limited housing inventory persists as a challenge for New Hampshire. The meager supply of single-family residential homes contributes to the ongoing struggle for affordability. The median home price of $445,000, a historic high for January, further emphasizes the difficulties in achieving affordable homeownership.
Affordability Index Decline
This affordability challenge is underscored by the affordability index, which stood at 68 in January 2024. This index indicates that the state's median household income covers only 68 percent of what is required to qualify for the median-priced home under prevailing interest rates. Comparatively, this reflects a 12 percent drop from the previous year and a significant 52 percent decline from January 2020, when the index was 141.
New Hampshire Housing Market Forecast 2024 & 2025
Average Home Value:
According to Zillow, the average home value in New Hampshire stands at $445,263, reflecting an impressive 8.0% increase over the past year. This substantial rise is indicative of a thriving real estate market in the state. Homes in New Hampshire typically go pending in a swift 11 days, emphasizing the high demand for properties.
For Sale Inventory:
As of January 31, 2024, there are 2,129 properties available for sale in New Hampshire. This inventory provides prospective buyers with a diverse range of options to explore in the housing market.
In January 2024, 758 new listings emerged in the New Hampshire real estate market, contributing to the dynamic nature of the housing landscape. The influx of new properties indicates a continuous flow of opportunities for both buyers and sellers.
Median Sale to List Ratio:
Reflecting the efficiency of the market, the median sale to list ratio as of December 31, 2023, is 1.001. This ratio suggests that properties in New Hampshire are generally selling close to their listed prices, showcasing a fair and balanced market for both buyers and sellers.
Median Sale Price:
The median sale price, as of December 31, 2023, is $426,667. This figure provides a benchmark for understanding the overall pricing trends in the New Hampshire housing market, allowing stakeholders to make informed decisions.
Median List Price:
As of January 31, 2024, the median list price for homes in New Hampshire is $450,000. This serves as a reference point for sellers, helping them determine competitive yet reasonable listing prices for their properties.
Percent of Sales Over/Under List Price:
Examining the market dynamics, as of December 31, 2023, 53.3% of sales in New Hampshire were over the list price, while 35.8% were under the list price. These percentages underscore the negotiation flexibility within the market and provide insights into buyer-seller interactions.
Are Home Prices Dropping in New Hampshire?
Contrary to a drop in home prices, the data suggests a consistent upward trend in New Hampshire. The average home value has risen by 8.0% over the past year, indicating a robust and appreciating market. While individual cities may experience slight variations, the overall state trend points towards increasing property values. Prospective buyers should monitor specific regions for any localized changes in pricing dynamics.
Will the New Hampshire Housing Market Crash?
As of the current data, there is no indication of an imminent housing market crash in New Hampshire. The positive year-over-year price changes and the overall growth in property values suggest a stable and resilient market. However, real estate markets can be influenced by various factors, and it's advisable to stay informed about economic conditions, interest rates, and other relevant indicators that may impact the housing market in the future.
Is Now a Good Time to Buy a House in New Hampshire?
Considering the steady increase in average home values and the competitive nature of the market, now may be a favorable time for prospective buyers in New Hampshire. While the overall trend suggests a seller's market, specific regions and neighborhoods may present unique opportunities for buyers. It's crucial to conduct thorough research, work with knowledgeable real estate professionals, and assess individual financial situations to determine if the current market conditions align with personal goals and preferences.
Regional New Hampshire Housing Market Forecast
As we explore the housing market forecast for various regions in New Hampshire, it's essential to delve into the data provided for metros such as Manchester, Concord, Keene, Laconia, and Berlin. The metrics offer valuable insights into the anticipated trends and growth in these distinct regions.
In Manchester, a metropolitan statistical area (MSA) in New Hampshire, the forecast indicates a steady growth trajectory. As of the base date on January 31, 2024, the year-over-year price change is 0.4%, with an expected increase of 1.8% by April 30, 2024, and a notable 6.5% by January 31, 2025. This suggests a positive outlook for real estate in Manchester, with property values expected to rise significantly over the forecast period.
Similar to Manchester, Concord, another MSA in New Hampshire, demonstrates positive trends in its housing market forecast. The year-over-year price change as of January 31, 2024, is 0.3%, and it is expected to rise to 1.6% by April 30, 2024, and further to 6.7% by January 31, 2025. These projections indicate sustained growth, making Concord an attractive region for real estate investments.
Keene, a city in New Hampshire, shows a moderate yet promising forecast. The year-over-year price change is 0.1% as of January 31, 2024, and it is expected to increase to 1.1% by April 30, 2024, and 6.7% by January 31, 2025. The gradual rise in property values suggests a stable and positive market in Keene.
Turning our attention to Laconia, the MSA reflects optimistic projections in its housing market forecast. With a year-over-year price change of 0.1% as of January 31, 2024, the forecast indicates an expected increase to 1.1% by April 30, 2024, and a more significant 7.3% by January 31, 2025. These figures highlight Laconia as a region with potential for substantial real estate appreciation.
Finally, in Berlin, another MSA in New Hampshire, the housing market forecast shows resilience. Despite a slight decrease with a year-over-year price change of -0.1% as of January 31, 2024, the forecast anticipates a positive turnaround with an expected increase to 1% by April 30, 2024, and a consistent 7.3% by January 31, 2025. This suggests that Berlin is poised for recovery and growth in the real estate sector.