New Hampshire Housing Market Hits Record Highs: Median Home Prices Reach $538,000

The New Hampshire housing market continues its upward trajectory, with the median price of single-family homes hitting a remarkable $538,000 in June, marking the fourth consecutive month of record-breaking prices. This significant increase reflects the ongoing trends of supply and demand, presenting both challenges and opportunities for potential homebuyers.

A Closer Look at Rising Prices

The monthly breakdown reveals a consistent climb in home values:

• March 2024: $495,950
• April 2024: $515,000
• May 2024: $525,000
• June 2024: $538,000

For the first half of 2024, the median price stands at $505,000, compared to $460,000 during the same period in 2023—a nearly 10% increase year-over-year.

Supply and Demand Dynamics

Joanie McIntire, President of the New Hampshire Association of Realtors (NHAR), attributes the soaring prices to heightened demand coupled with a limited supply:

“The housing market continues to be a lesson in supply and demand. The demand for homes remains very high, and although supply is slightly increasing, it remains extremely low.”

[link-whisper-related-posts]

Increasing Listings, But Still Limited

June saw an 8% rise in active listings, up from 1,727 in 2023 to 2,162 in 2024. Despite this increase, the current level of homes remains far below historical norms. For context, back in June 2014, there were over 11,500 homes on the market.

• Months Supply: As of June 2024, the months supply of homes is at 2.0, which is notable compared to 1.6 in June 2023, although a healthy market typically has around six months of inventory.

The average time any home spent on the market also declined, dropping to 21 days in June, down from 26 days the previous year.

Affordability Challenges

Affordability remains a pressing concern for many New Hampshire residents. The affordability index for June improved to 72, indicating that a median household income only covers 72% of the necessary amount to qualify for a median-priced home.

Rob Barber, CEO of ATTOM, notes:

“The latest affordability data presents a clear challenge for homebuyers. Home prices are increasing while mortgage rates remain high, making homes less affordable.”

Income Requirements by County

To provide further context on affordability, here are average mortgage payments and required incomes across various counties:

• Rockingham County: Average payment of $3,619 (Needed income: $155,093)
• Hillsborough County: Average payment of $3,224 (Needed income: $138,182)
• Merrimack County: Average payment of $2,826 (Needed income: $121,121)
• Strafford County: Average payment of $3,040 (Needed income: $130,300)

Leading Counties in Home Prices

Rockingham County tops the list with a median price of $685,000, reflecting a 14.2% increase from last year. Here’s a breakdown of single-family home prices in other counties for June 2024:

• Belknap: $476,000 (Down 6.2%)
• Carroll: $461,450 (Down 7.1%)
• Cheshire: $362,501 (Up 3.6%)
• Coos: $303,500 (Up 48%)
• Grafton: $407,000 (Down 4.2%)
• Hillsborough: $572,500 (Up 13.6%)
• Merrimack: $492,500 (Up 4.2%)
• Strafford: $540,000 (Up 20%)
• Sullivan: $406,850 (Up 18.8%)

High-End Market Insights

The Seacoast Board of Realtors reported record sales in the high-end market, with a single-family home selling for $922,500 in June.

“The high-end sales record truly demonstrates the confidence buyers have in our market,” said the board’s President, Lynn Lagasse.

The Broken Dream of Home Ownership

As the housing market escalates, affordability becomes a barrier for many. McIntire emphasizes the critical need for increased housing supply:

“This housing shortage is limiting the state’s supply of mid- and entry-level workers, which will continue to affect the state’s economy.”

Solutions

Addressing the shortage requires a multi-faceted approach:

• Zoning Reforms: Local municipalities must consider relaxing zoning restrictions to facilitate the construction of new homes.
• Increased Inventory: Building more homes is essential to alleviate the current crisis.

Conclusion

New Hampshire’s real estate market is at a pivotal moment, marked by record-high home prices and prevailing affordability challenges. For buyers, navigating this landscape requires patience and understanding of the underlying dynamics. Greater collaboration among local governments, builders, and residents holds the key to ensuring a sustainable housing market in the future.

For more information on the New Hampshire housing market, visit the New Hampshire Association of Realtors.