New Hampshire Real Estate: Soaring Prices Amid Limited Supply
New Hampshire’s real estate market is defying expectations, maintaining its momentum even before the pandemic. In April 2023, the state’s single-family home median price hit an impressive $450,000, mainly due to ongoing supply challenges.
Supply and Demand Challenges
New Hampshire’s thriving real estate market faces a significant supply and demand gap. According to Ben Cushing, President of the New Hampshire Association of Realtors (NHAR), supply remains a considerable issue. While there’s been a slight inventory increase, the growth is modest. In April 2022, New Hampshire had only a one-month supply of residential homes for sale. By April 2023, it improved slightly to 1.1 months. In comparison, April 2019 data showed a more balanced market with 2.7 months of supply.
Regional Trends in Rockingham County
Rockingham County, especially the Seacoast region, reflects the statewide trend. Despite a 14.5 percent decrease in home sales in April 2023 compared to April 2022, the median sale price remains robust at $750,000, matching the all-time record set in June 2022. The Seacoast Board of Realtors reports crowded open houses and multiple-offer situations in this hot market.
County-Level Median Home Prices
NHAR data reveals median home prices exceeding $400,000 in six of New Hampshire’s ten counties. Rockingham County leads at $599,450, followed by Carroll at $465,000, Hillsborough at $458,000, Merrimack at $447,500, Strafford at $442,000, and Belknap at $435,000. The rest fall below this threshold, with Grafton at $363,500, Cheshire at $327,500, Sullivan at $310,000, and Coos at $179,950.
Selling Prices vs. List Prices
Sellers in only two counties consistently achieved prices above their list prices: Carroll and Sullivan. In Carroll County, the median sale price was $465,000, while the median list price was $499,900. In Sullivan County, sellers asked an average of $289,900 but secured sales at an average price of $310,000.
Market Outlook
Considering supply and demand dynamics, significant price decreases are unlikely for 2023. New Hampshire’s desirability continues to drive high demand, making it challenging for supply to catch up. Ben Cushing, NHAR president and a broker and regional manager of Four Seasons Sotheby’s International Realty in Hanover, emphasizes the sustained high demand for homes in the state.
Equity Gains in New Hampshire
New Hampshire homeowners are benefiting from property value appreciation. A report from ATTOM reveals that 54.8 percent of mortgaged residential properties in New Hampshire were considered equity-rich in Q1 2023. This means their estimated loan balances were no more than 50 percent of their estimated market values. This percentage increased from 54.7 percent in Q4 2022 and significantly from 49.8 percent in Q1 2022.
Equity-Rich Counties in New Hampshire
Carroll County leads with 67.9 percent of properties qualifying as equity-rich. Other counties follow closely: Belknap at 60.9 percent, Grafton at 58.8 percent, Coos at 57.3 percent, Sullivan at 56.5 percent, Rockingham at 54.7 percent, Merrimack at 53.6 percent, Strafford at 52.9 percent, Cheshire at 52.1 percent, and Hillsborough at 51.4 percent.
Conclusion
New Hampshire’s real estate market has not only defied expectations but has continued to flourish despite supply challenges and shifting dynamics. The soaring median home price of $450,000 in April 2023 is a testament to the state’s resilience and enduring appeal. As the supply and demand gap persists, particularly in Rockingham County and the Seacoast region, where record-setting median sale prices are coupled with increased market competition, the outlook for significant price decreases in 2023 remains unlikely. Homeowners across the state are reaping the benefits of property value appreciation, with a majority experiencing equity gains. With Carroll County leading the way, New Hampshire’s real estate market remains a compelling and robust force in the region, further reinforcing its status as a sought-after destination for homebuyers and investors alike.
