HOME PRICES & DAYS ON MARKET
Through June, single-family homes in NH are slightly above the national growth of 5.8% in median sale price, seeing a 7.8% increase over last year (Rockingham County +14.2%, Strafford County +20%) and have been selling at an average of 2.4% above the list price (Rockingham County +2.5%, Strafford County +3.8%). As the numbers show, prices have trended upward and are anticipated to continue that path, though predictions have the rate of appreciation slowing down, just as its deceleration has continued since pandemic levels. While prices continue their climb, days on market have also seen an increase. Homes have remained on the market 5.3% longer than last year and receive fewer offers, showing that buyer activity is slower and reflecting the increase of inventory. A contraction of buyer activity is also the case on a national level, although less in the Northeast than the rest of the country.
INVENTORY
NH is hovering close to the national average of an approximate 37% increase in inventory, seeing growth up 32.1% from June of last year (Rockingham County +18.9%, Strafford County +27.4%). Even with this growth, we are still down around 40% (30% nationally) from levels of June 2019, so if it seems as if you’ve noticed more construction than previously, it’s partly because housing is still playing a game of catch-up.
RATES
Mortgage rate volatility has felt like the norm and the rate has dipped below 7% at times, with hopes of it dropping even more. Experts are predicting a decline in mortgage rates; while traders are expecting a rate cut at the Fed’s September meeting, some others are hesitant about that and don’t see it happening until December or maybe even the new year. Federal officials have stated that they do not have a timeline for rate cuts (which affect mortgage rates). As for now, mortgage rates are just about where they were a year ago.
So, what does all this mean for you?
As a SELLER – Your property will continue to appreciate, just not at the rate we have seen in the past. So if you’re like most sellers and are also purchasing a new home, now is a great time to sell, as you can still enjoy the massive equity gained over the past few years and also look at getting into a new home before rates drop and more buyer competition enters the market. You’ve seen that inventory has been rising (seller competition), so get on the market now while your house can stand out more than others. Don’t forget about the time it takes to get your house on the market, get it under contract, and then get it closed. Also read below for tips on timing the market and buying.
As a BUYER – Some consumers like to wait around for rates to drop. News Flash – so many variables affect the market, trying to time it and predict when the rate is going to be lowest can be an impossible task, and by then you may have already missed out on the home you wanted. Time is your friend when it comes to gaining equity – start taking advantage of home price appreciation as soon as possible. Moreover, with the anticipation of rates going down, waiting around means that you’ll be hopping in the pool with more swimmers that were doing the same. A crowded pool means competition for the ‘lane’ you want, creating a higher chance of someone who wants it more than you do. Given the time it takes for you to get pre-approved, search for homes, view the ones you like, find the one that you love, and then go through the process of it closing, you probably should have started this yesterday. Here’s a pro tip on another reason why now is a great time to buy – as odd as it sounds, when rates decline there’s sometimes a lull in buyer activity (because they’re still holding out just a little bit longer to see if rates go down even more). Once they feel that it’s ‘safe’, all the other procrastinators are also feeling it at the same time, so it’s better to get started before you’re surrounded by too much competition.
“You are only one decision from a totally different life.” – Wilfred A. Peterson
Data sources: NAR, NHAR, Prime MLS, MBS Highway, Freddie Mac, Mortgage Reports, HousingWire, Mortgage News Daily