Real Estate Trends

The year-end housing market report provided by NHAR

"The year-end median price of a single family residential home in New Hampshire was $514,000 in 2024, ending a year characterized by low inventory and record-low affordability.

NEW HAMPSHIRE MONTHLY INDICATORS

The $507,000 median price in December was the highest ever for the month and the 59th consecutive month of year-over-year price increases in New Hampshire.

As a result, the NHAR Affordability Index remained historically low in December, at 59. It means the median household income is just 59 percent of what is necessary to qualify for the median-priced home under prevailing interest rates. Just five years ago in December, the Affordability Index was more than double that, at 131.

The number of homes on the market in the state increased modestly over the course of the year, and the 1,549 for sale at the end of December marked an 8 percent increase from a year prior. But that's still just 1.5 months' supply of inventory – meaning the time it would take to sell off the current housing stock at the most recent pace of sales – roughly a quarter of the 5-7 months that is considered a balanced market. It's been since October 2016 that New Hampshire had as much as 5 months' supply.

For NHAR's full slate of market data, including our Monthly Indicators report and detailed county- and town-level reports, visit our FastStats landing page. To create your own customizable and brandable market reports, visit NHAR's members-only InfoSparks page.

 Questions? Please email Vice President of Communications and Member Engagement Dave Cummings (dave@nhar.com), or call 603-554-7855."

Source: This was published by New Hampshire Realtors eNews on 1/27/2025. No link on website, so copy and pasted from email. For more information, visit: https://nhar.org/

This past year we continued to see rising prices and low inventory, making it challenging for buyers. The good news is that inventory has increased and closed sales for the year were up 3.6%. The number of homes for sale in NH in December was 1549 homes, up 7.9% compared to 2023. Not enough to accommodate the demand and the need for housing, but it’s a step in the right direction. With only a 1.4 month supply of homes to sell, it still is a seller’s market (a balanced market has a 4-6 month supply). Since demand exceeded supply, this pushed the median sales price of a home in NH to $514,000 – a 9.4% increase over 2023.

Looking closer to home, the combined sales for Newbury, New London, and Sunapee followed a somewhat similar trend. Sales were up 25% from the year before with 158 homes sold vs.126 in 2023. The average days on market was 34 days and the median selling price was $662,500, up 2.7% from 2023. 

Whether buying or selling, contact me to find out how low inventory and increasing buyer demand impact you.

Donna Forest M: 603-731-5151 donna@donnaforest.com Follow her on Facebook

While no housing forecast is 100% accurate, they do provide a useful perspective on what the 2025 market might look like. Below are some key points from Lawrence Yun, the Nat’l Assoc. of Realtors (NAR) Chief Economist, and Realtor.com.

• Mortgage rates are expected to fluctuate but be closer to 6.3%.
• Home values could see a modest increase. Yun predicts a 2.6% increase in the median home price and Realtor.com predicts 3.7%. The avg. of 19 forecast models shows a 3.1% increase.
• More homes are projected to be on the market – Realtor.com predicts an 11.7% increase in inventory. With an uptick in inventory, NAR feels existing homes sales would be up 9%.

NAR unveiled the top 10 housing spots for 2025. These picks were based on economic, demographic and housing factors predicted to significantly impact local markets. Among those were Boston-Cambridge-Newton, MA and New Hampshire! Bottom line, it will still be a seller’s market since home supply remains low. For buyers, the market isn’t as hot as it has been in the past few years so there should be more options and maybe less competition.

Contact me to find out how the market impacts your buying or selling goals.

Donna Forest M: 603-731-5151 donna@donnaforest.com Follow her on Facebook

The good news is that new listings are up 10.9% statewide. NH sales thru Aug. 2024 increased 2.5% compared to the same time in 2023 however the median sales price is up 10.9% at $515,000. Houses are basically selling at 101% of their asking price with an average of 27 days on the market.

A more local snapshot, which includes 9 towns in our area, shows that sales jumped 23% thru August compared to the same time in 2023. The median sales price is $530,000 (up 8% from 2023). Homes are on the market an avg. of 32 days and are selling at asking price.

Lawrence Yun, Chief Economist for the Nat’l Assoc. of Realtors said “Homes are sitting on the market a bit longer, and sellers are receiving fewer offers. More buyers are insisting on home inspections and appraisals, and inventory is definitively rising on a national basis.” He also said “Homes priced right are selling very quickly, but homes priced too high are deterring prospective buyers.” This essentially mirrors our local market as we are seeing more price reductions than we’ve seen in a long time. 

Whether buying or selling, contact me if you’d like to make an informed decision on your next move.

Donna Forest M: 603-731-5151 donna@donnaforest.com Follow her on Facebook

Despite the mortgage rates, demand continues to exceed supply. The encouraging news is that new listings are up 14.4% statewide thru April. NH sales thru April 2024 increased 5% compared to the same time in 2023 however the median sales price is up 11% at $485,000. Houses are basically selling at 100% of their asking price with an average of 33 days on the market.

A more local snapshot, which includes 10 towns in our area, shows that sales increased 7% thru April with a median sales price of $479,000 ( down 2% from 2023). Homes are on the market an average of 42 days and are selling at asking price.

So what's next for home prices? According to the Home Price Expectation Survey (a survey of over 100 economists, real estate experts, & market strategists), experts are projecting home prices will continue to rise for at least the next 5 years. The percentage of appreciation is expected to be at a much more normal rate, from 3.3% to 4.1%. 

Whether buying or selling, contact me if you'd like to make an informed decision on your next move.

Donna Forest M: 603-731-5151 donna@donnaforest.com Follow her on Facebook

This past year we continued to see rising prices and low inventory, making it challenging for buyers. NH saw fewer home sales than any other year since 2011. The total number of closed sales was down 19% compared to 2022. December had only a 1.4 month supply of homes to sell – 1382 homes for sale In the whole state compared to 1551 in 2022 (a balanced market has a 5-6 month supply). Since demand exceeded supply, this pushed the median sales price of a home in NH to an all-time high of $470,000 – a 6.8% increase over 2022.

Looking closer to home, the combined sales for Newbury, New London, and Sunapee followed the same trends as the whole state. Sales were down 19% from the year before with 126 homes sold for the year vs. 155 in 2022. The average days on market was 22 days and the median selling price was $645,000, up 7.5% from 2022.

Whether buying or selling, contact me to find out how low inventory and increasing buyer demand impacts you.

Donna Forest M: 603-731-5151 donna@donnaforest.com Follow her on Facebook

Economists are optimistic about this coming year, especially as mortgage rates are expected to be lower and inflation appears to be slowing. Below are some top predictions from the experts.

• Mortgage rates are expected to ease. Forecasters are calling for rates to be in the 6% range.
• Home prices will continue to rise. The Home Price Expectation Survey from Fannie Mae, on average, anticipates home price growth at 5.95% in 2023, followed by slower growth in 2024 at 2.4% and 2.7% in 2025.
• The housing market will remain competitive. This is due to several factors, including population growth, strong job growth, and a limited supply of homes for sale.
• The supply of homes should loosen up somewhat as mortgage rates drop and changing circumstances will lead to more moves and new listings.

Overall, there are positive signs this will be a better year for the housing market with the expectation 2024 will see slight home-price gains, lower mortgage rates, and a somewhat easing of inventory constraints. Prices will vary by local markets, but experts project they will continue to rise across the country at a pace that’s more normal. 

Contact me to find out how the market may impact your buying or selling goals.

Donna Forest M: 603-731-5151 donna@donnaforest.com Follow her on Facebook

SPRING MARKET UPDATE

The housing market is not crashing. 

In fact, we are in the strongest real estate economy where 48% of homes are equity rich with at least 50% equity. 63% of mortgages originated are below 4%. 

Of note:

• Interest rates are fluctuating based on economic factors right now. Rates 6.5% - 7% mean limited buyer demand. Rates 7%-7.5% mean weak buyer demand. Lawrence Yun, chief economist of the Nat’l Assoc. of Realtors (NAR), expects rates to fall to 5.5% by mid-2023. Fannie Mae predicts 6.8% and Freddie Mac is 6.4%.
• Home prices will vary depending on location. Overheated markets are depreciating; others are appreciating. In NH, prices are up 5% thru Feb. 2023. The Home Price Forecast 2023 shows, for example, Realtor.com projecting +5.4%, CoreLogic +3.1%, NAR -1.6%, Fannie Mae -4.2%. Prices are expected to increase and reach more normal levels of 3%-4% annually starting in 2025.
• The biggest challenge is low inventory. The number of homes for sale in the US is 47.4% lower than it was before the pandemic. In NH, new listings are down 20.3% in Feb. 2023 vs. 2022. The lack of homes for sale has kept prices from falling. Fourteen years of underbuilding is one of the major reasons for this low supply.

Don’t let false information stop you from buying or selling. Contact me for the straight scoop on the real estate market.

Donna Forest   Listing Broker Contact me today! O: 605.526.4116 donna@donnaforest.com www.donnaforest.com

Agent cards.pdf

Home Selling Trends in 2022

Since 1981, the Nat’l Assoc. of Realtors has published an annual report providing insight into buying and selling behaviors. Since my last article was about buyers, I thought it would be good to provide some interesting data on sellers from the 2022 Profile of Home Buyers and Sellers.

• The typical home seller was 60 years old and had lived in their home for 10 yrs.
• 86% of sellers worked with a real estate agent to sell their home.
• 85% said they would definitely recommend their agent for future services.
• 10% of home sales were For Sale By Owner (FSBO). Of this 10%, half of the sellers knew the buyer of their home. FSBOs typically sell for much less than the selling price of agent assisted home sales.
• For recently sold homes, the final sales price was a median of 100% of the listing price – the highest recorded since 2002. In NH for 2022, the median sales price was $440,000, an 11.4% increase from 2021, and the sales price was 102.2% of the listing price.

The information provided in this report helps highlight the trends in the housing market and also shows that buyers and sellers value the role of a real estate professional. Whether buying or selling contact me to see how these trends impact you.

Contact Donna Forest: 603-526-4116; www.DonnaForest.com; Donna@DonnaForest.com

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