Elaine Thompson/AP file photo
Home prices in New Hampshire continue to remain high, with median prices staying above $500,000 for the fifth month in a row.
In July, the median price for a single-family home in the state was $530,000, just shy of the record high of $538,000 set in June.
According to data from the New Hampshire Association of REALTORS, nearly one in five homes on the market at the end of July were listed for over $1 million.
These high-priced listings are driven by low inventory, establishing a strong seller’s market.
Joanie McIntire, NHAR President, said that while affordable housing would be ideal, any new housing, even a $700,000 home, will benefit the state now.
“If someone moves up, and someone moves up to a home with a higher price, it also opens up an apartment all the way down,” she said. “Maybe it opens up an apartment for somebody who is couch surfing or living in someone’s basement or something like that. So I think it helps all strata of the housing.”
In Merrimack County, the median home price dropped from $492,500 in June to $470,000 in July. However, this decrease is still higher than the $450,000 median price recorded in July 2023.
Rockingham County continued to lead with a median home sale price of $650,000 in July, down from $685,000 in June.
Despite a 29% increase in inventory from last year, reaching 2,228 homes in July, this number is still nearly 10,000 homes fewer than the inventory level in July 2014, when New Hampshire’s housing market was last balanced.
Back then, it would take about five months to sell all available homes; now, it’s closer to two months.
In July 2014, the median home price in the state was $347,885, and in Merrimack County, it was $309,900.
The current lack of inventory and resulting high prices have significantly impacted affordability. Today, buyers would need to earn 43% more to qualify for a median-priced home under current interest rates.
McIntire stressed that building more homes and loosening zoning restrictions across towns in New Hampshire could alleviate the housing crisis.
“Shelter isn’t a luxury; it’s a necessity,” said McIntire, adding that housing costs should ideally account for only 27% to 30% of a person’s income.
Despite the housing crisis, McIntire sees a silver lining — people across the state are becoming more aware of the need for additional housing.
She hopes that the progress made this year will carry over into the next legislative session, helping towns understand that this issue goes beyond the economy and affects people’s lives.
“We need to have a strong economy for people to live here and for people to want to continue to live here,” said McIntire. “We need to have young people here to take the jobs that us old people are moving out of and in shelter.”
Sruthi Gopalakrishnan can be reached at sgopalakrishnan@cmonitor.com
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Publish date : 2024-08-16 07:00:00
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