New Hampshire homebuyers are facing another affordability challenge this fall as elevated mortgage rates add to already high home prices. More properties are becoming available, but the cost of financing a purchase continues to put homeownership out of reach for many households.
According to the New Hampshire Association of Realtors’ September report, the statewide median single-family home sale price reached $569,900, up from $535,000 a year earlier. The increase shows that prices remain elevated even as buyers gain more options.
Higher Rates, Higher Monthly Payments
Mortgage rates climbed above 7% in September, adding pressure to buyers already dealing with expensive homes, property taxes, and insurance. The state's housing affordability index fell to 51, down from 58 a year earlier, reflecting the growing gap between household incomes and the cost of owning a median-priced home.
Even a modest rate increase can add hundreds of dollars to monthly housing expenses over time, affecting how much buyers can borrow and which properties they can realistically consider.
Inventory Is Improving, but Supply Remains Tight
There were encouraging signs for buyers. Single-family home inventory increased 19.3% year over year, while homes spent an average of 32 days on the market, compared with 27 days a year earlier. Pending sales also rose 8.5%, suggesting buyers are still active despite higher borrowing costs.
However, New Hampshire had only 2.9 months of housing supply in September, well below the six months commonly associated with a balanced market. More listings may give buyers additional choices, but they have not yet brought broad price relief.
What This Means for Buyers and Sellers
Buyers may have more room to compare properties and negotiate than they did during the most competitive periods of the market. Still, they need to focus on the full monthly payment rather than the listing price alone.
Discussion
Thoughts from readers and local market watchers.