New Hampshire home prices surge again in March

Single-family price jumps 16.5% to $362,900

March 2021 Median PriceScarce supply and strong demand pushed the median price of a single-family home in New Hampshire to $362,900 in March, a 16.5% increase from March 2020, when the. pandemic began.

It’s the 10th straight month of double-digit increases in the median home price.

Home sales fell 3.5% from last year, likely a reflection of the shortage of homes for sale. In March, there were only 1,137 homes for sale in the Granite State, compared to 3,385 in March 2020. It took an average of 40 days to sell a home in March, compared to 66 days a year ago, and if no home were to come on the market, the current inventory of homes for sale would be gone in just over three weeks. Last March, there were over two months of inventory.

The strong demand may be triggered by out-of-state buyers looking to leave larger cities. Whether that will abate if the pandemic eases is anybody’s guess.

The supply of new homes is also limited by a backlog in the lumber supply chain, which has increased the price and delayed construction.

Whatever the reason, bidding wars have become even more common.  Last year, homes sold, on average, close to the asking price, but still below it. Now they go for 102.2% above the asking price.

Homes are coming on the market, however. Some 1,616 were added in March, only 5.6% fewer less than last year, but there was an 18.8% increase in pending sales.

The condo situation is similar, just not quite as intense.   The median price of $269,550 was 10.2% higher than last year, and sales rose by 8%. Still, there are 56.6% percent fewer units for sale, but new listings are up by 9.3%.

As usual, homes in Rockingham County sold for the highest price, with a median of $460,000 – a 15% percent increase from a year ago. In Coos County, where homes are the least expensive, the median price is $190,000, 46% more than last year. Homes in Belknap County rose by the second-highest percentage – 31%, to $366,400.  In the largest county, Hillsborough, the median price rose 21.5% to $405,000.

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