Again, for the fourth straight month, the median price of a single-family home in New Hampshire reached new heights in June. This time to $538,000.
It’s been a successive historic climb since March, when it reached $495,950. Then it went to $515,000 in April, then $525,000 in May, then $538,000 in June, according to the most recent data from the New Hampshire Association of Realtors.
For the combined first six months of 2024, the median price of a single-family is $505,000. For the first six months of 2023, the median was $460,000, almost a 10% difference.
“The housing market continues to be a lesson in supply and demand,” said Joanie McIntire, NHAR president. “The demand for homes remains very high and the supply of homes, although increasing slightly, is extremely low. This, of course, results in increased selling price.”
Supply
McIntire saw some good news in the association’s June report showing both an increase in the months supply of homes and number of new listings, but she also noted that everything is relative.
“The statistics tell us that the number of homes on the market is increasing. In fact, there were 8% more active listings in June than last year at this time. June of 2024 saw 2,162 active listings compared to June 2023, which had 1,727,” said McIntire, associate broker at Coldwell Banker J. Hampe Associates in Concord.
“The problem is that last year’s numbers were so low that a small increase in units appears as a fairly significant increase in percentage,” she added. “Looking back to June of 2014, there were 11,567 homes on the market. The 10-year graph shows that the supply is bouncing around the bottom, not making any serious gains.”
Months supply is measured by estimating how long it would take to sell all homes on the market at the current sales pace, assuming no new homes are added. A healthy months supply is six months.
In June, the NHAR showed a months supply of 2.0 for single-family homes, which is 25% better than June 2023, when it was 1.6 months.
But homes, even at an elevated price, are in high demand and were going more quickly in June. The average days on market for a property was 21 in June compared to 26 last year.
“As for demand, my experience has been that sellers continue to receive multiple offers on their listings and very often accept an offer that is over the listing price,” said McIntire. “All of this has resulted in an increased median sale price to $538,000.”
Affordability
By extension, affordability continues to be an issue in the Granite State.
June’s affordability index was 72, which is much improved from May when it was 56. The index is based on 100, in that the average homeowner has exactly enough money to afford the costs associated with buying a house. The lower the index, the less affordable the real estate is to buy.
An affordability index of 72 shows that a median household income is only 72% of what is needed to qualify for a median-priced home.
It’s a problem that New Hampshire shares with the nation.
ATTOM, a national curator of land, property and real estate data, released its second-quarter 2024 U.S. Home Affordability Report showing that median-priced, single-family homes and condos were less affordable in the second quarter of 2024 in most areas of the country when compared to historical averages.
“The latest affordability data presents a clear challenge for homebuyers. While home prices are increasing and mortgage rates remain relatively high, these factors are making homes less affordable,” said Rob Barber, CEO for ATTOM. “It’s common for these trends to intensify during the spring buying season when buyer demand increases. However, the trends this year are particularly challenging for house hunters, more so than at any point since the housing market boom began in 2012.”
According to the ATTOM data, the average mortgage payment for a residential property in Rockingham County for the first half of 2024 is $3,619. That includes the mortgage, property taxes and insurance. Assuming the typical guideline that you shouldn’t spend more than 28% of your income on housing, a homeowner in Rockingham County would need an annual income of $155,093 to afford that property.
Here is the ATTOM breakdown for the other most populous counties in the state:
Hillsborough County: Average payment of $3,224, needed income of $138,182.
Merrimack County: Average payment of $2,826, needed income of $121,121.
Strafford County: Average payment of $3,040, needed income of $130,300.
The NHAR data continues to show Rockingham as the priciest county when it comes to single-family homes. The June median price stood at $685,000, up 14.2% from last June. Here is how the single-family homes in the nine other counties stock up, and how they compare to June 2023:
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%
Within Rockingham County, the Seacoast Board of Realtors reported a record $922,500 in June for a single-family home. The board takes its data from the following sample communities: Exeter, Greenland, Hampton, Hampton Falls, New Castle, Newfields, Newington, North Hampton, Newmarket, Portsmouth, Rye, Seabrook and Stratham. There were 42 transactions of $1 million or more in that area.
“The high-end sales record truly demonstrates the confidence buyers have in our market,” said Seacoast Board of Realtors President Lynn Lagasse.
The statewide median for a residential condominium was $412,450 in June, a 3.1% increase over June of 2023. Here is the county by county breakdown:
Belknap: $360,000, down 29.7%
Carroll: $420,000, up 20.2%
Cheshire: $371,250, up 48.6%
Coos: $619,000 (there were 0 sales in June 2023)
Grafton: $420,000, up 9.1%
Hillsborough: $390,000, up 13%
Merrimack: $339,900, up 4.6%
Rockingham; $475,000, down 2.1%
Strafford: $524,950, up 48.2%
Sullivan: $340,000, down 35.2%
“At the simplest level, this is keeping first-time and middle-income homebuyers from achieving the American dream of home ownership. This housing shortage is limiting the state’s supply of mid- and entry-level workers, which will continue to affect the state’s economy,” said McIntire. “With a supply that is short 20,000-plus housing units, the only real answer to this dilemma is building more homes. The most impactful change that can be implemented to increase the housing stock is for local municipalities to relax zoning restrictions.”
