Anyone who knows I work in real estate always asks me, "How's the market?" My answer is almost always the same: It depends on who you are! Buyers are still facing low inventory, which has increased competition. This is usually good news for sellers. Many homeowners know if they plan to sell their home, there is strong potential for multiple offers.
Interest rates have been rising but are projected to settle in the second half of the year. It is unlikely to see rates drop below 6%, but right now they are hovering just over 7%. While this might feel high compared to the low rates of 2020/2021, the average over the past 30 years is 7.38%. The median home price also just jumped another $38,000 since April to $538,000 as of June.
In the first half of 2024, inventory grew to 2.2 months (a healthy market has 6 months), but we are still seeing buyers making offers over the asking price. The List Price to Sales Price Ratio in NH was 102.4% in June. A List Price to Sales Price Ratio of 100% would indicate homes are selling at the seller's asking price. This has brought the affordability index to 55. A housing affordability index of 100 would mean that a family making the median income could qualify for a mortgage. The average Days on Market is currently 20 days across all of New Hampshire.
Another change to the market will be the NAR Settlement that will initiate on August 17th, 2024. You can read more about the settlement here. Commissions for agents have always been negotiable between clients and their Realtors; this settlement will just change the structure of those commissions. This will potentially affect home buyers' purchasing power and increase sellers' net proceeds.
For now, the market is still competitive for buyers and a strong seller's market. If you or someone you know is thinking about buying or selling, I would love to be a resource! Feel free to reach out via text or call at 603-315-7804.
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