There is a strong indication that the New Hampshire housing market leans heavily towards being a buyer’s market. The steady decrease in sales of single-family homes, along with the high median price and a limited supply, creates a situation where sellers hold an advantage in negotiations. The state has seen an unstoppable rise in the median price of homes, at an all-time peak in November. This has created a dilemma for buyers looking for an affordable price in the marketplace.
What do you feel about the New Hampshire housing market doing right now?
How is the housing market performing? Based on the data provided to the New Hampshire Association of Realtors (NHAR), New Hampshire has experienced an essential shift in the home market’s dynamics. The state is poised to experience the lowest number of single-family residential home sales since 2012.
This downward trend has remained in the past, with November 2022 witnessing a 5.5 percent decrease in sales compared to the same month of the prior year. This is alarming, as it marks the 29th straight month of year-over-year declines in residential single-family sales in the state.
Affordability Challenges
The main reason for the decrease in housing activity is affordability. Single-family home prices hit a record-breaking highest of $450,000 in November, a 3.4 percent increase over the previous year. New Hampshire has now witnessed 45 consecutive months of year-over-year median price increases, creating an enormous challenge for prospective buyers of homes.
The Affordability Index, a crucial indicator of the viability of homeownership, is 64. This indicates that the average household earnings are just 64 percent of what’s needed to be eligible for the median home price at the present interest rate. This represents a 7.2 percent drop from the previous year and an astonishing 40 percent decline in the year 2021, where the number was at 106. To give some context, there was a time when the Affordability Index for homes in this state climbed to 220 in February 2012.
Inventory Insights
Another critical aspect that influences the market for housing includes the supply. As of November, inventory was at 1,775, which is an increase of 3 percent from November 2022. The limited supply of homes has resulted in a monthly list in the range of 1.8 within New Hampshire, considerably lower than the national average of 3.6. The national standard for a balanced market is 6-7 months. This underscores the present scarcity of houses in New Hampshire.
Is it a buyers’ or sellers’ housing market?
In the current scenario, the New Hampshire housing market leans strongly towards being a buyer’s market. The constant decrease in sales of single-family homes, along with the low median prices and a lack of supply, creates a situation where sellers hold an advantage in negotiations.
Is Now a Good Time to Buy a House in New Hampshire?
The decision to purchase a home in New Hampshire depends on individual circumstances. The current market can pose problems for buyers due to rising prices and a limited supply. For sellers, it’s an ideal opportunity to profit from the rising demand and favorable market conditions.
New Hampshire Housing Market Forecast 2024
According to Zillow, the median house worth of homes in New Hampshire stands at an astounding $447,215 – an impressive 7.7 percent growth in the past year. Remarkably, homes in New Hampshire are up for auction in a mere nine days, which highlights the speed and efficiency that the housing market has. These numbers, valid until November 30th, 2023, give a picture of the present housing market in New Hampshire.
Key Metrics and Indicators
- Inventory and new listings: As of November 30th, 2023, the state had 2,909 houses available for sale, accompanied by 1,294 new listings over the same time. These numbers provide insight into the number of homes available and the current activity on the market.
- The Median sales price on October 31st, 2023 is $440,000. This compares to an average list price of $464,667 on November 30th, 2023. These numbers provide insight into pricing dynamics in the New Hampshire housing market.
- Sale-to-List Ratio: The ratio between sale and list, which was 1.006 on October 31st, 2023, measures the relationship between sold prices and the list price. This ratio can provide valuable insight into the market negotiation trends.
- Market dynamics: It is noteworthy that 59.4 percent of sales between October 31st, 2023, were above the list price, whereas 30.2 percent were below the cost of the list. These numbers reflect the fierce competition in the industry and a large proportion of sales going over the price of the list.
Regional Housing Forecast in New Hampshire
The regional forecast for the various regions of New Hampshire provides a nuanced view of the market’s expected performance. The forecast, which runs up until December 31st, 2024, provides growth projections for the following key regions:
- Manchester, NH: A slight increase of 0.1 percent is predicted at the end of December 2023, with a steady outlook until February 2024 and a substantial growth of 1% by November 2024.
- Concord, NH: An increase of 0.3 percent by the end of December 2023. This was followed by a rise of 0.4 percent in February 2024. Then, there will be an even more dramatic increase to 1.8 percent by the end of November 2024.
- Keene, NH: A stable forecast, possibly of 0.1 percent growth until December 2023, sustaining stability through February 2024. gradual increase to 2.1 percent by November 2024.
- Laconia, NH: Expected growth of 0.2 percent by December 2023. This will be followed by a modest rise to 0.4 percent in February 2024. Then, an even more dramatic increase to 3.2 percent will be increased by November 2024.
- Berlin, NH: A steady growth pattern with an average of 0.2 percent increase by the end of December 2023, a gradual increase to 0.8 percent in February 2024, and a more significant increase of 3.7 percent by November 2024.
Will the New Hampshire Housing Market Crash?
Given the impressive development of the New Hampshire housing market, which is characterized by rising home values as well as rapid sales and optimistic growth forecasts across regions, there is no indication of a crash in the housing market. But, constant monitoring of the critical indicators is essential to navigate the ever-changing real estate market.