New Hampshire Real Estate Market Recap: 2024 & What to Expect in 2025

As we close out 2024, the New Hampshire real estate market has experienced significant shifts, challenges, and opportunities. For buyers, sellers, and investors, the landscape has been dynamic, and as we look ahead to 2025, the trends from this past year provide valuable insight into what we can expect moving forward.

2024 Real Estate Market Recap

The New Hampshire real estate market in 2024 was marked by a blend of resilience and uncertainty. Despite rising interest rates and a relatively tight inventory of homes, demand remained strong across the state, especially in sought-after areas like Manchester, Concord, and the Seacoast region. Here’s a breakdown of the major trends that shaped 2024:

1. Persistent Low Inventory

Throughout 2024, one of the most significant challenges was the continued shortage of homes for sale. Homeowners, particularly those with low mortgage rates locked in from previous years, were reluctant to list their homes, creating a supply-demand imbalance. This resulted in competitive conditions, with many homes receiving multiple offers, especially in the more desirable suburban and rural areas.

The lack of inventory wasn’t limited to single-family homes. The multifamily and luxury markets also saw limited availability, pushing many buyers to explore new construction or more affordable alternatives in nearby towns.

2. Rising Interest Rates

Interest rates, which began to climb in 2022, continued to rise in 2024. The higher rates, set by the Federal Reserve to curb inflation, significantly impacted buyer affordability. With mortgage rates hovering around 7% to 7.5%, potential buyers were feeling the pinch, particularly first-time homebuyers and those looking to move up in the market. As a result, some buyers decided to hold off on purchasing, while others opted for smaller homes or different areas to offset the higher monthly payments.

3. Strong Demand, Particularly in Certain Markets

Despite the challenges of higher rates and low inventory, demand for housing in New Hampshire remained robust. The Seacoast, Lake Sunapee, and Monadnock regions saw strong interest from both out-of-state buyers and locals looking for a change of scenery. Many people continued to relocate to New Hampshire for its quality of life, low taxes, and proximity to major cities like Boston.

The booming remote work trend played a part in this demand, as people increasingly sought homes with more space and access to outdoor activities, while still being within driving distance of larger urban centers.

4. Home Prices Remained Steady, With Some Areas Seeing Growth

In 2024, home prices across New Hampshire remained relatively stable, although some areas saw price growth due to the high demand and low inventory. According to recent data, the median sale price for homes in New Hampshire increased slightly, particularly in the southern and lakeside areas. However, with rising interest rates limiting purchasing power, the pace of price appreciation slowed compared to previous years.

For sellers, the market was still favorable, with many homes selling relatively quickly, often with multiple offers. However, the market became more selective as buyers became more cautious and mindful of higher financing costs.

What to Expect in 2025: A Year of Transition

Looking ahead to 2025, New Hampshire’s real estate market is expected to experience several shifts, driven by both national economic factors and local dynamics. Here are a few key trends to watch for:

1. Gradual Stabilization of Interest Rates

As we move into 2025, there is a strong possibility that interest rates will stabilize or even decrease slightly. If inflation continues to ease, the Federal Reserve may choose to lower rates, making homeownership more affordable for buyers. A potential drop in rates could spark renewed interest from buyers, especially those who have been waiting for more favorable borrowing conditions.

If rates decrease, we may see an uptick in home sales, particularly in the first quarter of the year. However, even with slightly lower rates, it’s unlikely that we’ll return to the historically low rates we saw a few years ago, so buyers will still need to adjust their expectations.

2. Inventory May Improve, But Not Dramatically

While we can expect some improvement in inventory in 2025, it may not be enough to fully alleviate the tight market conditions. New construction will likely play a role in meeting demand, especially in growing towns and cities. However, construction costs have remained high, and labor shortages may continue to delay projects, which could limit the supply of new homes in certain areas.

Existing homeowners are still likely to hold on to their properties due to the higher interest rates they would face if they purchased a new home. This means that inventory may gradually increase, but the market will remain competitive in many sought-after areas.

3. Continued Demand for Suburban and Rural Homes

The trend of remote work and people seeking more space will likely persist into 2025. Buyers will continue to look for homes that offer more room for work, recreation, and relaxation. Suburban and rural towns, especially those within commuting distance of Boston or other urban hubs, will likely see continued interest. Towns in the Lakes Region, Monadnock, and the White Mountains are expected to remain popular among those seeking a quieter, more scenic lifestyle.

4. Price Growth May Slow, But Certain Areas Will Still See Appreciation

While home prices in New Hampshire may not see the dramatic increases we saw in 2021 and 2022, we expect that demand will still drive price appreciation in desirable locations, especially in the southern and lakeside regions. Expect steady but more moderate growth in areas like Concord, Nashua, Portsmouth, and Hanover.

However, some areas may see a cooling of prices as higher interest rates continue to impact buyer affordability. For sellers, the market will still be favorable, but it will be important to be realistic about pricing and prepared for potential longer listing times if inventory increases.

5. A Focus on Sustainability and Energy Efficiency

As the state continues to grow, buyers will increasingly prioritize homes with sustainable features such as energy-efficient appliances, solar panels, and environmentally friendly materials. These features will be a key selling point for homes, and properties with such upgrades may command a premium in the market.

Conclusion

2024 was a year of adjustment for the New Hampshire real estate market, with rising interest rates, low inventory, and strong demand shaping the landscape. As we move into 2025, we can expect a gradual stabilization of interest rates, a slight increase in inventory, and continued demand for suburban and rural homes. While price growth may slow down, certain areas of the state will still see appreciation, especially as buyers seek more space and sustainability in their homes.

Whether you're looking to buy, sell, or invest, staying informed about market trends will be key to navigating what’s ahead in New Hampshire’s real estate market. If you're planning a move or want to learn more about the current market conditions, feel free to reach out—we’re here to help guide you through the exciting opportunities of 2025!