Are Home Prices Still Going Up?
Given the war in Ukraine, rising mortgage rates, COVID, inflation at 7.9%, etc., you might be wondering if home prices will still be increasing or if we are in a housing bubble that might burst at any moment. We are definitely NOT in a housing bubble. It is simply the law of supply and demand at work where there are more buyers than houses for sale. The lack of inventory means buyers will be forced to bid up prices if they hope to land a home. In NH, new listings are down 17% thru Feb., the volume of sales is down 17.7% and the median sales price at $400,000 is up 14% compared to the first two months in 2021. Back in Dec., economists were predicting home prices to rise at a more moderate rate between 5% and 6%. Zillow is now predicting prices to be up 17.3% at year end. While it’s difficult to really say how much increase there will ultimately be, the forecast is definitely upwards as spring is shaping up to be one of the hottest markets yet. Home ownership builds wealth – a homeowner’s net worth is 40x greater than that of a renter. It also is one of the best investments against inflation. Whether a first-time buyer or looking to sell to buy a home that better suits your needs, waiting will cost you. Contact me to find out what steps you should be taking now.
Donna Forest 603.731.5151~donna@donnaforest.com
After a strange and fast-paced year in real estate, it’s sometimes helpful to look back and see what the market did in 2021. Below are some interesting statistics.
In NH, when comparing single family home sales in 2021 to 2020 - the median sales price was up 17.9% to $395,000, the number of days a house was on the market was 26 days, the number of listings was down 6.3%, the number of homes sold was down 5.5%, and houses typically sold at 102.5% of the asking price.
Comparing the combined 8 area towns (Kearsarge School District plus Sunapee) – the median sales price was up 17.5% to $417,000, the number of days a house was on the market was 9 days, the number of homes sold was down 22% (463 sales in 2020 vs. 361 sales in 2021), and houses typically sold at 100% of the asking price.
In short, sale prices reached new highs, inventory remained low and homes sold in record time and usually above asking price. The expectation for 2022 is a bit more of the same, albeit at a more moderate pace. If you are thinking of buying or selling, contact me to find out how the market impacts you.
Data taken from NH Assoc. of Realtors and NEREN MLS, 1/1/20 to 12/31/20 and 1/1/21 to 12/31/21.
Contact Donna Forest: 603-526-4116; donnaforest.com www.DonnaForest.com Donna@DonnaForest.com
You’ll be moving in the right direction with Better Homes & Gardens Real Estate - The Milestone Team
Home prices in NH as well as the US continue to climb upwards as we still are experiencing a shortage of houses for sale. Multiple offers are driving the median sales price of a home in NH to a high of $375,000 (YTD thru May) while the median sales price for the US is $350,000. The average days on market is 34 days and the selling prices are 102% of the asking price. Looking at our local market, in the 3 towns of Newbury, New London & Sunapee combined, there were a total of 53 homes sold thru May 2021, 56 sold in 2020 and 65 sold in 2019. The median selling price is $495,000 thru May compared to last year at $341,250. The average days on market is 24 days and last year was 91 days.
Lawrence Yun, chief economist for the National Assoc. of Realtors predicts by year end that we will see “less multiple offers, less hurried decisions, less frenzy” as he expects more inventory to come on the market. He anticipates bidding wars would no longer be prevalent by 2022. On the other hand, many articles I’ve read predict it will be years before the housing shortage catches up with demand. My advice – it’s hard to time the market so you should buy or sell when it’s right for you. Contact me to learn more about how the market could impact your plans in this challenging environment!
Donna Forest ~ donna@donnaforest.com ~ 603-731-5151
Despite everything that happened this past year, most economists are predicting 2021 to continue to be a hot market with high demand and low inventory. Home sales and prices are expected to continue to rise. The 20-plus housing and economic experts participating in NAR’s annual Real Estate Forecast Summit predicted housing prices to increase 8% in 2021 and 5.5% in 2022. Danielle Hale, chief economist for realtor.com expects home sales to jump 7% with home prices up 5.7%. Mortgage rates are expected to remain low with a slight uptick in the 30-year fixed rate to 3.0%.
Svenja Gudell, chief economist for Zillow, stated “there are millions of millennials aging into their prime home buying years, and millions more Gen Zers behind them that all will want and need homes of their own, keeping demand at a boil for years to come.” Also, the ability to work remotely for many now means people can live where they want versus where their workplace is located. With a thriving real estate market in 2021, buyers should take advantage of the historically low interest rates. Sellers will continue to benefit from the high buyer demand. Whether buying or selling, contact me for more information on how this hot market impacts you. Donna@DonnaForest.com; 603-526-4116 (O); 603-731-5151 (C).
Typically, as we slide into our fall season of apple picking and pumpkins on the porch, the real estate market starts to slow down. Usually there are fewer buyers out looking and not as many homes for sale. But as we all know, this year is anything but normal! Homes are still selling quickly and values continue to rise. Data from the Mortgage Bankers Association showed loan applications were up more than 30% year over year and they expect buyer demand to continue into 2021. In the words of Lawrence Yun, National Association of Realtors' chief economist, “this market momentum is very solid.” He also stated "home sales continue to amaze, and there are plenty of buyers in the pipeline ready to enter the market."
“With unusually high buyer interest this late in the home buying season, buyers are moving much faster than this time last year to beat out competition and lock in low mortgage rates. This means homes are sitting on the market for much less time, despite notably higher price tags,” the report’s author, Realtor.com economist Danielle Hale, wrote. “Campisi, Natalie The Fall Real Estate Market Is Abnormally Hot As Mortgage Rates Break Records” Forbes 9/11/20
Bottom line, it’s not too late to get your house on the market! Contact me if you want to know how to successfully sell your home this fall. 603-526-4116; www.DonnaForest.com; Donna @DonnaForest.com
The real estate market continues to see low inventory and high buyer demand which means it is still a sellers’ market. In July, the state was reporting historically low inventory – half as much for sale this year compared to last year in July (which was also historically low). Buyers realize the importance of home ownership as evidenced by the Mortgage Bankers Association Aug.12 report which shows a 22% increase in mortgage home purchase applications over last year.
NH market data reveals the state had the highest July median sales price ever for that month at $340k. Year to date (thru July) the median sales price in NH is up 7% at $320k compared to $299k last year with the days on market at 56 days and sellers receiving 98.9% of the list price. In the combined towns of Newbury, New London & Sunapee, the number of home sales is a little ahead of last year (thru July) – 115 sales this year/110 sales in 2019. The avg. days on market is 74 and sellers are receiving 96% of their asking price. Currently there are only 43 homes for sale in the 3 towns; 29 of which are priced over $400k. Now is the ideal time to be selling as we expect buyer activity to remain strong thru early fall. Contact me if you’d like to know the value of your home in today’s active market! 603-526-4116; www.DonnaForest.com; Donna @DonnaForest.com
Teamwork from the Team that works –Better Homes & Gardens Real Estate - The Milestone Team
On the eve of July 31st, 2020, the sun set on a record-breaking month for residential home sales in New Hampshire. NH REALTORS® reported 2,012 residential sales, the most in the state's recorded history for July---which even in slower years is a terrifically busy month for real estate transactions. The month's median selling price also coincided with New Hampshire's highest ever, at $340,000.
This recent summer boom comes on the heels of five consecutive months of declining sales in the New Hampshire residential housing market. Ever since January 2020, sale volumes had been falling...but July swiftly reversed that trend. Not only that, but it soared ahead to achieve a 6.4% increase over 2019's July sales. July 2020 ushered in a strong seller's market, with sales prices increasing by 22%, and pending sales increasing by 19%. At the same time, the market supply dwindled: homes for sale decreased by a staggering 54%.
July has come and gone, but this trend continues. We're now in the the final golden days of summer, in August, and "healthy buyer demand and constrained supply continue to be the story," reports NH REALTORS®. "A competitive market for buyers...is expected to continue into the late summer and early fall market."
Read more in-depth about this trend: https://www.nhar.org/assets/docs/NHAR_MMI_2020-07.pdf
It’s natural to assume during this economic shutdown that home prices are dropping and foreclosures are up. This is far from the truth and in fact, NH home prices are up 7% (YTD through April) with a median sales price of $304,900. Nationwide the median sales price is up 7.4% which marks 98 straight months of year-over-year gains. Prices are being pushed higher due to the undersupply of homes to sell. In fact at certain price points, bidding wars are not uncommon in our area. For example, in Newbury, New London & Sunapee combined, there are only 51 homes for sale and only 8 are priced under $300k (as of 6/2).
Many experts predict home prices will continue to appreciate through 2022; projections range from 0.4% to 4.6%. And there are some who predict a small decline. No one can say for sure what the future holds given the uncertainties of our times. However, the benefits of home ownership go beyond pricing and provide stability, builds net worth and a sense of community. Yes, it’s a great time to be a seller but buyers also can benefit from the record low mortgage rates. Contact me if you are looking for guidance on buying or selling. 603-526-4116 (Office); www.DonnaForest.com, Donna@DonnaForest.com
Based on numerous articles I’ve read recently, the housing market for 2020 will be déjà vu all over again! This past year we had limited supply, low interest rates, and high demand and not much is expected to change. In fact, the ARCH Mortgage Ins. Co. estimates 32 of the 50 states have a minimal probability of having lower home prices for the next 2 years (including NH). Core Logic predicts US home prices to increase 5.4% in the US and 7.1% in NH. There are several reasons for low inventory; more homes need to be built, the average homeowner is moving every 13 yrs. which is up from 8 yrs. in 2010, and a greater number of baby boomers are aging in place. The good news for buyers is mortgage rates are expected to remain low, around 3.8%. Bottom line, 2020 is expected to continue as a seller’s market with appreciation stronger at the lower price points. Whether buying or selling, contact me to find out how the market impacts you! 603-526-4116; www.DonnaForest.com; Donna@DonnaForest.com
The housing market still appears to be going strong both in the US and in NH. Nationally, the median sales price through Aug. was up 4.7% to $278,200 and in NH it was up 5.6% to $299,900. A strong labor market, low interest rates, and low inventory continue to impact housing sales by pushing up home prices. Locally, in the towns of Newbury, New London, & Sunapee combined, sales up are up - 164 homes sold YTD through Aug. compared to 135 sold in 2018. Avg. days on market this year is 78 days compared to 116 days last year for the 3 towns and the avg. selling price was 96% of the asking price. Interestingly enough, in our area the median sales price through Aug. stayed about the same at $351,000 (last year it was $350,000).
While the U.S. economy at large looks positive, experts are split on whether another recession is on the horizon. However, most signs point to continued good news for the housing market. The CoreLogic HPI Forecast predicts a moderate but healthy 5.6% acceleration in annual home price growth to June 2020. Bottom line, the housing market is really good for buyers and sellers. Mortgage rates are low and home prices are still rising. Contact me to work with a realtor who understands how the market impacts you! 603-526-4116; www.DonnaForest.com; Donna@DonnaForest.com.