New Hampshire Housing Pulse:

As we wrap up 2024, the real estate market in New Hampshire has shown its fair share of surprises, challenges, and opportunities. From shifting interest rates to a persistent housing shortage, this past year has painted a complex picture of New Hampshire’s housing landscape. As we turn our eyes to 2025, many are asking: will home prices keep climbing? Will interest rates finally ease? And what can buyers and sellers expect as they navigate this dynamic market? Here’s a look back at the trends that shaped 2024 and what experts predict for the year ahead.

In 2024, even with mortgage rates hovering around 7%, nearly half of recent homebuyers managed to secure rates below 5%. This wasn’t magic; it was strategy. Builders and sellers sweetened deals by offering lower-rate incentives, some buyers held out for rates to dip before making their move, and others creatively sought lower-rate financing from friends, family, or through refinancing options. Yet, despite these strategies, affordability remains a serious concern. According to the National Association of REALTORS® (NAR), home affordability continues to be strained across the country—a fact particularly evident in New Hampshire, where home sales in southeastern areas are down but prices continue to rise.

New Hampshire’s housing shortage persists, especially in the southeastern regions, and is expected to carry into 2025. However, increasing inventory levels, both locally and nationally, may help ease the pace of price growth. While sellers can likely expect modest appreciation in their home values next year, buyers may find that an incremental drop in interest rates will help them afford more house for their dollar. Many mortgage analysts project that rates could dip just below 6% in 2025, offering some relief to those feeling squeezed by high borrowing costs. On the other hand, Trump’s presidential victory is already having an affect raising interest rates to just over 7 percent this week according to Housing Wire.

Another shift in the market is the rising average age of homebuyers, which has climbed to 56, up from 49 just last year. Rising prices have increasingly locked younger buyers out of the market, driving a trend that could continue into 2025. This aging demographic of buyers may shape everything from the types of homes in demand to the neighborhoods and amenities they prioritize.

Overall, the New Hampshire real estate market continues to be an exciting, fast-paced landscape. While challenges like affordability and inventory will persist, 2025 brings the promise of new opportunities. Buyers, sellers, and industry professionals who stay informed and adapt to the trends will be best positioned to succeed in this dynamic market.  Stay informed.  Follow me.