New Hampshire’s real estate market continues to defy expectations. Despite economic shifts, demand for homes in the state remains strong. Buyers and sellers alike are watching interest rates and prices closely as 2025 approaches.
Rising prices show continued demand
In September 2024, home prices in New Hampshire rose by 4% compared to the previous year. The median sale price hit $490,100. That increase reflects limited inventory and sustained buyer interest. Homes are still selling quickly, with many going off the market in under six weeks. If you’re looking to buy, expect tight competition and fewer choices. Sellers, on the other hand, can still expect solid offers if their pricing is strategic.
Interest rates ease, but affordability remains a concern
Mortgage rates fell slightly toward the end of 2024, averaging around 6.5%. While that provides some relief for borrowers, it hasn’t dramatically improved affordability. With prices staying high and wages not increasing at the same pace, many buyers are stretching their budgets.
You might find some sellers more open to negotiation now, but the overall cost of entry remains steep. For most buyers, interest rates alone won’t make a major difference unless housing supply improves.
Why the market remains hot
New Hampshire ranked as the 9th hottest real estate market in the country in 2024. Several factors contribute to this status. The state offers a strong quality of life, low unemployment, and close proximity to Boston without the same housing costs. This combination continues to attract both local and out-of-state buyers. For you, this means the market will likely stay active, even if price growth slows in 2025.
What to expect next
Looking into 2025, home values may continue rising, but likely at a slower rate. Inventory shortages will remain a central issue. If you’re entering the market, stay informed and prepared to act quickly. While rate cuts help, the biggest impact will come when more homes become available for sale.