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 New Hampshire real estate market is showing signs of a cooling trend. While home prices are still relatively high compared to the previous year, there is a slight tempering of the out-of-control price hikes, according to August residential real estate data. Ben Cushing, President of the New Hampshire Association of Realtors (NHAR), stated that although inventory remains low, there are segments of the market where prices are stabilizing, and homes are staying on the market a bit longer than before.
Key Data and Trends:
- The median sales price for a single-family home in New Hampshire was $490,000 in August, which is 8.9% higher than the previous year.
- The supply of homes increased slightly from 1.7 months to 1.8, though it's still considered low.
- The average days on market for homes increased from 19 to 20, which is significantly lower than the national average.
A Sellers' Market Persists
Despite the signs of cooling in some segments of the market, New Hampshire remains a sellers' market. Multiple offers and quick property agreements are still prevalent in certain areas. Cushing predicts that this trend will continue into the fall and possibly beyond, making it a great time to be a seller in the state.
Regional Price Variations:
- Rockingham County has the highest median home price at $628,000, driven in part by Seacoast activity.
- Coos County has the lowest median home price at $227,500.
Challenges in the New Hampshire Condo Market
The residential condominium market is also experiencing price increases, with a median price of $385,000 in August, up 8.5% from the previous year. However, days on market increased from 22 to 26, and the supply increased from 1.3 to 1.5 months, indicating a slight slowdown.
Seacoast Condo Market:
The Seacoast region reported a median condo price of $569,950 in August, a 20% increase from the previous year. Rising interest rates have contributed to a cooling period in this market, with uncertainty about whether prices will continue to rise or stabilize.
Impact of Rising Interest Rates
Rising interest rates are causing concerns in the New Hampshire real estate market. Fannie Mae's August economic forecast predicts a federal funds rate of 4.4% by the end of 2024, with mortgage rates following suit and reaching 6% by the end of the year. This shift in interest rates is a significant change from previous years, where rates were much lower.
In August, the 30-year fixed mortgage rate reached 7.23%, a level not seen in over two decades. This increase in mortgage rates may impact the affordability and availability of homes in the market.
Resident Concerns and Surveys
The housing issue is deeply ingrained in the New Hampshire psyche. Surveys show that housing is the most significant problem facing the state, with 27% of respondents citing it as their top concern. The need for more affordable housing is emphasized, particularly among younger voters who are sensitive to the housing crisis.
Survey Results:
- 27% of respondents identified housing as the most important problem in New Hampshire.
- 78% of New Hampshire voters believe that more affordable housing needs to be built in their communities.
- Youth voters unanimously support the idea of more affordable housing in their communities.
Overall, New Hampshire's real estate market is currently favoring sellers, with some signs of stabilization in home prices. However, rising interest rates pose challenges, and the need for more affordable housing is a prominent concern among residents. Despite these challenges, the sellers' market is expected to persist in the near future, making it a favorable time for those looking to sell their properties in the state.
New Hampshire Housing Market Forecast 2023-2024
According to Zillow, the New Hampshire housing market continues to display robust growth, with the average home value in the state currently standing at $449,799. This represents a significant increase of 6.2% over the past year, indicating a thriving real estate market in the region. Furthermore, homes are going pending in an astonishingly short period, with an average of just 8 days to transition from listing to pending status, making it a highly competitive market for prospective buyers and a favorable one for sellers.
Key Market Data (Data through September 30, 2023)
- Average Home Value: $449,799
- Yearly Price Growth: 6.2%
- Days to Pending: 8
- Median Sale to List Ratio (August 31, 2023): 1.023
- Percent of Sales Over List Price (August 31, 2023): 66.9%
- Percent of Sales Under List Price (August 31, 2023): 23.9%
- Median Days to Pending (September 30, 2023): 8
New Hampshire MSAs Housing Market
While the state of New Hampshire as a whole exhibits remarkable growth, it's important to delve into the housing markets of different regions within the state. The following data provides insights into the growth and performance of Metropolitan Statistical Areas (MSAs) within New Hampshire, without the use of tables as per your request:
Manchester, NH MSA
The Manchester MSA shows significant growth, with a year-over-year increase in home prices. The BaseDate for this data is September 30, 2023, and the projected values are as follows:
- October 31, 2023: 0.8%
- December 31, 2023: 1.5%
- September 30, 2024: 4%
Concord, NH MSA
The Concord MSA is also experiencing substantial growth, with the following projected values:
- October 31, 2023: 0.9%
- December 31, 2023: 1.6%
- September 30, 2024: 4.4%
Keene, NH MSA
In Keene, the MSA's housing market is showing steady growth, as demonstrated by the projected values:
- October 31, 2023: 0.6%
- December 31, 2023: 1.5%
- September 30, 2024: 5%
Laconia, NH MSA
The Laconia MSA is seeing notable growth, as depicted by the following projected values:
- October 31, 2023: 0.8%
- December 31, 2023: 1.6%
- September 30, 2024: 5.9%
Berlin, NH MSA
The Berlin MSA also displays robust growth, with the following projected values:
- October 31, 2023: 0.8%
- December 31, 2023: 1.8%
- September 30, 2024: 6.3%
The New Hampshire housing market is thriving, with substantial year-over-year price growth and rapid property sales. This growth is not only seen at the state level but also within various MSAs, demonstrating the strength of the real estate market across New Hampshire. Prospective buyers should be prepared for a competitive market, while sellers can take advantage of favorable conditions.
Sources:
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- 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/
