By Christian Wade | The Center Square
Housing costs in New Hampshire continue to rise, with a new report showing the median price for a home in the state jumped to $440,000 last month.
The latest monthly report from the New Hampshire Association of Realtors found the median price for a home in the state increased by 20.5% from the same period last year when it was $365,000. That’s a more than 41% increase from March 2020, the report shows, when the median price was $311,545 for a single family home.
As prices continue to skyrocket, the number of closed home sales has dwindled, falling by 23% since last year. Only 811 single-family residential home sales were closed in March 2022, the report noted. That’s compared to 1,055 single family home sales in the same month a year ago.
New listings for a single family homes last month decreased by more than 14%, according to the report, highlighting the ongoing shortage of market-priced properties.
The report noted properties that come onto the market are getting snapped up quicker. The average days on the market for single-family homes dropped by 17.5% last month, while the number of days on the market for townhouse/condo properties dropped by a similar amount.
Nationally, home sales dropped recently to a six-month low, falling 7.2% last month as buyers struggle to find a home amid rising prices and a lack of inventory.
The report’s authors noted that Granite State consumers are “feeling the bite of inflation and surging mortgage interest rates,” which increased to 4.6% in March.
“Monthly payments have increased significantly compared to this time last year, and as housing affordability declines, an increasing number of would-be homebuyers are turning to the rental market, only to face similar challenges as rental prices skyrocket and vacancy rates remain at near-record low,” the group said.
New Hampshire’s housing shortage has been compounded by local building restrictions that are preventing new construction projects from moving forward, according to a new study.
The report, released on Monday by the Josiah Bartlett Center for Public Policy, said New Hampshire is one of the most restrictive states in the country for residential development which has contributed to a shortage of housing that has major implications for the state’s economy.
In 2020, the New Hampshire Housing Finance Authority estimated that the state needs to build at least 20,000 more housing units to meet current demand.
The New Hampshire Council on Housing Stability, a panel created by Gov. Chris Sununu, is pushing for the construction of 13,500 new residential units within three years.