The median price of a new home in New Hampshire continues to soar, hitting a record high of $440,000 in March, according to the latest monthly snapshot from the New Hampshire Association of Realtors.
The median sale price of $440,000 is up 20.5% from the same period last year, according to the association. Condominium properties hit a median sale price of $350,500 last month, a 31% increase from a year ago.
The current median selling price represents a major jump from just February, when the state’s median selling price first crossed $400,000. Selling prices have risen rapidly in recent years; New Hampshire’s median price only first crossed the $300,000 mark in 2019. In 2002, the median home sale price was $200,000.
And a metric often used by real estate agents and industry analysts — months of inventory supply — continues to fall. Currently, it would only take “0.8 months” to sell all inventory in the state if no new homes come on the market, according to the latest report. A healthy market would take six months, according to housing economists.
As prices surged across the state, the number of completed sales continued to decline, falling 23% since this time last year. Only 811 sales of single-family residential homes were completed in March 2022. Between March 2021 and this March, the number of listings fell by 14.1% with only 1,134 on the market.
High prices and low supply have pushed families into the rental market, driving up rents and lowering vacancy rates in the state, analysts said.
Affordability has also taken a hit. While in March 2020 New Hampshire’s median income was 126% of what was needed to buy the home at the median price, in March 2022 the median income only covered 80% of the current median sale price.
“Across the country, consumers are feeling the effects of inflation and soaring mortgage interest rates,” the report concludes. “Monthly payments have increased significantly compared to the same period last year, and as housing affordability declines, an increasing number of potential buyers are turning to the rental market, to face similar challenges. as rental prices soar and vacancy rates remain at near – record lows.