Are You Ready for New Hampshire’s 2021 Real Estate Market?
While temperatures in New Hampshire are currently cold, the real estate market is hot. Median sale prices continue to rise, hitting a new high of $351,000 in November, a 16.0% increase year-over-year. Sale volume has also increased 16.0% in November, up 44.0% year-over-year. Clearly, demand in homes is surging throughout the state, putting pressure on real estate agents to deliver.
So, entering 2021, what should New Hampshire real estate agents expect?
2021 New Hampshire Real Estate Outlook: Hot
New Hampshire’s booming real estate market has paid off well for sellers in the state. The median price of homes rose by 10.1%, showing just how much the demand for homes has increased over the last year. The median home sale price also rose to double digits statewide with some areas like Coos County jumping by 51.3%. At the same time, rental prices in New Hampshire increased 0.2%, which isn’t very significant compared to the shift in home prices, suggesting that there are more homeowners than renters in the state.
Additionally, 2.8% of New Hampshire homes have negative equity, which is moderate compared to the rest of the country,though homes in New Hampshire gained $27,000 in equity on average over the last year. As demand continues, the equity will increase. The number of homes with negative equity is also expected to decrease as the economy re-opens and more residents return to work.
Delinquency rates are just above the national average at 0.9% but have continued to decrease over the course of the year. The state’s unemployment rate has steadily decreased since its height in April at 17.1%. Currently 4.0%, state representatives and residents are optimistic that this figure will keep dropping in 2021.
2020 New Hampshire Real Estate Market Data
|Zillow Home Value Index||$321,496|
|1-Year Change on Home Values||+10.1%|
|1-Year Change on Rent Prices||+0.2%|
|Homes With Negative Equity||2.8%|
|Delinquent on Mortgages||0.9%|
|Buyer’s or Seller’s Market||Seller’s|
Market Insights for New Hampshire
New Hampshire’s housing inventory was shrinking well before the pandemic, but true to 2020, plans changed and the need for a home changed overnight. Listings have fallen 41.0% since 2015, and the number of homes for sale has decreased 17.0% since last year. This low inventory will continue to raise median prices and sale prices. If new development does not pick up in 2021, then experts fear active home inventory will be exhausted within a few months.
This low inventory could become a big problem, especially as many Americans living in big cities are taking part in a big city exodus, retreating to states like New Hampshire where they have more space and feel a stronger sense of safety. While the home inventory situation will be difficult for agents to navigate, it’s no surprise why people are flocking to the Granite State - see how it ranks amongst the country:
- First in opportunity
- First in low crime and corrections
- Fourth in natural environment
- Fifth in education
New Hampshire’s housing market is projected to see increases in median home price, sale price, and sale volume in 2021. Be prepared for a busy few months before the summer selling season. Re-evaluate your communication channels and make sure you and your listings are available, both in person and online, so you can be ready to take your slice of the New Hampshire real estate pie.
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