The number of September residential home sales in New Hampshire dropped by 30 percent compared to a year prior, and affordability remained at a low point as the median price of those sales hit an all-time September high at $490,000.

Housing Industry urges Fed Chair Powell to stop raising interest rates or risk an economic hard landing. Lead by the National Association of Home Builders, Mortgage Bankers Association and the National Association of Realtors- profound concern continues to linger in the housing industry.

Mortgage demand shrinks as interest rates hit the highest levels in 23 years! The housing market is really at a standstill and will remain at that standstill until we see a drop in interest rates.

July 2023: Median New Hampshire $480,000.

Home sales volume down 15% from 2022.

Median NH Sales Price $495,000 (up 7.6% from June 2022). 

Closed Home Sales June 2023: 1,379 (down 15.5% from June 2022).

Sales of previously owned homes were essentially flat in May compared with April, according to the National Association of Realtors. Though sale prices have continued to rise, sales were still 20.4% lower than the previous year.

The slow spring sales pace is a combination of still high prices, elevated mortgage rates and a critical shortage of homes for sale. The pull between strong demand and tight supply is keeping the market competitive. Nearly a third of properties sold above list price. The start of the summer housing season is shaping up much like the spring, with slower sales due to lack of supply.

1. Anticipate unexpected homeownership costs-

One of the benefits of buying versus renting a home is the ability to have fixed costs. However, homeowners still need to anticipate surprises.With many cities increasing property taxes, prospective homeowners would be wise to anticipate those costs going up. Additionally, they should anticipate paying for landscaping, furnishing and unexpected emergencies such as a pipe bursting.Make sure you have enough liquidity to handle those additional expenses as a homeowner, Elliot said.

2. Look for flexibility on your purchase-

Though home prices and interest rates are high, there are still possible ways prospective homebuyers can cut costs. Homebuyers may also want to consider buying points on their mortgage, which will let them lock in a lower interest rate.

As homebuying incentives start to come back, such as with closing costs, be sure to ask if there are opportunities to reduce the overall price of the home at this time. Prospective buyers who have lower incomes should explore their city or county websites for homeowner or down-payment assistance programs.

3. Prepare for monthly home payments in advance-

One of the ways to be in the best financial position to purchase a home is to save! You should attempt to save and put away extras monies each month so taking on the cost of a new home won’t surprise you. Constantly look to improve your credit score, which will place you in the best possible position to get a good mortgage rate. Watch your spending habits and review your credit report to correct in inaccuracies.

Mortgage Demand drops as interest rates hit a 2-month high.

• The average interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) increased to 6.57% from 6.48%
• Mortgage applications to purchase a home dropped 4.8% last week, compared with the previous week.
• Applications to refinance a home loan fell 8% for the week.
• Bottom Line- higher mortgage rates and a severe shortage of homes for sale are taking their toll on current mortgage demand.

• Home prices rise as the spring market proves to be more competitive than expected.

• Millennial homeowners shift toward renovating instead of selling.

• 1 in 4 homes sell for less money in Texas and Seattle, WA than 1 year ago.

• Nearly half the home sellers in 1st quarter 2023 made some sort of concession to woo buyers.

Current home sales are still down in March and compared to March of 2022. Inventory is 41% lower than pre-pandemic levels and single family housing permits are down 31% while builder's continue to remain cautious do the interest rates.

What will our spring market bring upon us?