The New Hampshire real estate market is showing some dynamic changes, especially considering both national and local trends. Here are a few takeaways from the data provided by NHAR:
Positive Trends:
Increase in Inventory: A significant increase in inventory (27.9% for single-family homes and 32% for condos) is a positive sign, indicating that more properties are available for buyers. This can help balance the market a bit and may ease some pressure on prices in the coming months, depending on demand.
Price Growth: The rising median sales prices (up 9.2% for single-family homes and 4.1% for condos) suggest strong demand and continuing upward pressure on prices. For sellers, this is great news as it reflects a seller’s market where they can command higher prices. However, it can be challenging for buyers, especially first-time buyers or those with limited budgets.
Pending Sales: The 10% increase in pending sales for single-family homes signals that demand is still strong in New Hampshire, particularly for this category of property. Despite rising prices, buyers are moving quickly to secure homes.
Potential Concerns:
Affordability: With rising prices, affordability becomes a concern, especially as housing inventory rises. The increase in sales prices combined with higher mortgage rates could make it harder for some buyers to enter the market. The affordability index decline for single-family homes reflects this, even if it’s minor now—it could deepen if prices continue rising.
Days on Market: The increase in days on market (up 30% for single-family homes and 23.1% for condos) may indicate that homes are taking longer to sell than before. This could suggest buyers are becoming more cautious due to higher prices or are possibly waiting for a better deal as inventory improves.
National vs. Local Dynamics:
While nationwide housing sales are still lagging compared to previous years, New Hampshire’s real estate market is performing relatively well in terms of price growth and increased inventory. The local market appears somewhat insulated from broader national trends, possibly due to demand in specific regions like the Seacoast, Monadnock, and Lakes regions.
Long-Term Outlook:
If inventory continues to rise and mortgage rates remain high, there may be some cooling in price growth over the next few months. However, for now, New Hampshire’s market remains strong, particularly in more desirable areas.
Overall, the market is still skewed toward sellers. However, there are early signs that the market may begin to balance more with the increase in inventory and the longer time homes are spending on the market. How quickly buyers respond to these conditions will likely depend on broader economic factors like interest rates and wage growth.
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