Sales Snapshot: New Hampshire's Affordability Challenge

As we spring into March and approach our busy spring selling season, I thought I’d pull up some year-end statistics from 2023 to use as a baseline moving forward. The New Hampshire Association of Realtors? has compiled the following:

●???? In New Hampshire, the median sales price for a single-family home for 2023 was $470,000, resulting in a 7% increase over 2022.

●???? This one-year jump was the third-largest increase of any state in the USA.

●???? From 2019 to 2023, the median price jumped 57%.

●???? In 2023, there were only 11,620 single-family home sales in New Hampshire, a decrease of 19% from the previous year. This resulted in a 12-year low in unit sales.

●???? In 2023, the median sales price for condos in New Hampshire was $380,000.

●???? The 10 highest selling prices for single-family homes in the state of New Hampshire all occurred in the Lakes Region, starting at $7,500,000 for a waterfront home in Wolfeboro to $14,000,000 for a waterfront home in Meredith, 8 of the 10 homes were on Lake Winnipesaukee, 1 was on Squam Lake, and 1 was on Newfound Lake.

●???? The 10 highest selling prices for condos in New Hampshire ranged from $1,815,000 to $5,790,000. Most of them were in Portsmouth and New Castle.

●???? In Belknap County, the median sales price for single-family homes in 2023 was $447,500, a 5.3% increase over 2022.

●???? There were 719 single-family home sales in 2023 in Belknap County, a 23.1% decrease compared to the previous year.

●???? For condos in Belknap County, the Median sales price was $431,000, a 14.9% increase over the previous year.

●???? There were 297 condo sales in 2023 in Belknap County, a 6.5% increase over the previous year.

Here are some additional statistics I pulled up this week.

●???? The most expensive single-family home presently for sale in New Hampshire is priced at $17,995,000 at 4 Dancers Image Lane in N. Hampton. I can remember riding my bike past this property in my younger years.

●???? In the Lakes Region involving 25 towns and cities, as of 2/29/24, there are only 38 single-family homes listed for sale that are priced under $400,000.

●???? In the Lakes Region (25 towns and cities), as of 2/29/2024, there are only 169 single-family homes listed for sale in all price categories.

●???? In the entire state of New Hampshire, there are only 995 single-family homes listed for sale as of 2/29/2024. The median listing price is $650,000, quite a bit higher than last year's median sales price of $470,00. I think you will see some of these prices take price adjustments to sell this year because the rapid escalation in values we experienced since 2019 is not sustainable, especially in a higher interest rate environment.

●???? In the entire state of New Hampshire, there are only 201 single-family homes listed for sale as of 2/29/2024 that are priced under $400,000. This is the lowest number of homes we have ever seen for sale in New Hampshire in this price range. It wasn’t too long ago that just Roche Realty Group alone had 300 properties for sale. Shows you the magnitude of the state's affordability issue.

Here is some more interesting real estate news:

●???? A huge transfer of wealth will likely make Millennials “the richest generation in history,” according to a report released by Knight Frank. This will occur over 10 to 20 years. Those born between 1928 and 1945 and Baby Boomers born between 1946 and 1964 (77 million) will likely transfer equity-rich assets to their children and grandchildren. Knight Frank indicated that the transfer would see $90 trillion of assets move on to the next generation, making affluent Millennials the richest generation in history. It will likewise help Gen Z adults in terms of inheritances. Think about it; this megatrend will be a game changer for many Millennials and Gen Zs who have had a difficult time purchasing a home, adding to their savings, or even paying off student loans. It will also create another boom for second homes in New Hampshire’s Lakes Region and all of the resort vacation home markets throughout the United States because of the influx of cash. Keep in mind that this, unfortunately, will not benefit every Millennial and Gen Z due to the distribution of wealth, which could lead to another issue involving income inequality.

Here’s another real estate update:

●???? In 2022, the Granite State secured 22nd place in the National ranking with over 6,800 net newcomers coming into the state after taking off those who moved out of state. The allure of more affordable housing and top quality of life has undeniably attracted residents, particularly those relocating from expensive states. According to Storage Cafe’s Blog/State to State Moving Trends, the five states with the most households who moved into New Hampshire in order are Massachusetts (43%), California (6%), New Jersey (6%), Connecticut (6%), and Maine (5%). New Hampshire saw an influx of 17,000 Millennials before the ones who moved out. So, when you look at the numbers, New Hampshire’s gained a net increase in-migration of 6,800 residents in 2022, almost the size of the entire population of Gilford at 7,699. So basically, New Hampshire attracted around 6,800 more residents than it lost in 2022, a significant influx in light of the Granite State’s small total population of only 1,402,054 residents.

Luckily, New Hampshire has not seen the mega in-migration trends, as shown by Florida, Texas, and North Carolina, the top three states for net in-migration. Georgia also experienced large in-moves. We want to keep the growth of our state balanced. The states noted above are already experiencing problems because of the in-migration moves. New Hampshire, fortunately, has been able to retain its “quality of life” standing, its low crime and low poverty rankings, and it was ranked the #3 best states to live in during 2023, according to USAToday and WalletHub.

Let’s continue to protect our beautiful natural resources…our lakes, ponds, rivers, mountains, forests, farmlands, and oceanfront. We live in a very special place.

This article was written by Frank Roche. Frank is president of Roche Realty Group with offices in Meredith and Laconia, NH, and can be reached at (603) 279-7046. Data was compiled by a NEREN search on 02/29/2024 and is subject to change. Please feel free to visit www.rocherealty.com to learn more about the Lakes Region and its real estate market.