New Hampshire Housing Trends: What To Know

In November 2023, the New Hampshire housing market echoed national trends with subtle yet significant changes, reflecting a market adapting to evolving economic conditions.

Inventory Dynamics 

A critical aspect of the market was the inventory levels. There was a marginal increase of 0.7% in active listings compared to the previous year, marking a slight shift in the trend of inventory shortages. This change ended a four-month streak of annual inventory declines and marked the first November since 2016 where inventory increased from October levels. However, despite these increments, the active inventory was still significantly lower (37.8%) than the typical levels observed between 2017 and 2019.

New Listings and Seller Activity

November saw a notable uptick in seller activity, with newly listed homes increasing by 7.5% from the previous year. This marked the end of 17 months of declining listings. The Fannie Mae Home Purchase Sentiment Index indicated a growing sentiment among sellers, possibly influenced by the anticipation of rising mortgage rates and the approaching holiday season, which traditionally sees less market activity.

Market Pace

The market pace remained brisk, with homes spending an average of 52 days on the market. This duration was three days shorter than last year and significantly less than the average before the COVID-19 pandemic. The speedier market pace suggests that the supply constraints are still prompting quick buyer decisions, despite the increase in new listings.

Pricing Trends

In terms of pricing, the median list price saw a modest year-over-year increase of 1.0%, stabilizing at around $420,000. This stability in list prices was maintained despite the challenges posed by higher mortgage rates, which increased the monthly financing cost of a typical home by 7.9% from the previous year. Consequently, the required household income for purchasing a median-priced home rose to $118,000.

Price Reductions

The percentage of homes with price reductions decreased slightly from 20.2% in November of the previous year to 18.0%. This indicates a resilient market in terms of pricing, even though there was a notable late-season rise in price reductions in the preceding months.

In summary, the New Hampshire housing market in November 2023 demonstrated a blend of stability and gradual change. While inventory levels showed minor improvements and seller activity increased, the market continued to be fast-paced with stable pricing trends. These factors, combined with the economic landscape, particularly in terms of mortgage rates, suggest a market that is adjusting while maintaining its appeal to both buyers and sellers.

 

Sources: https://www.realtor.com/research/november-2023-data/