NH housing market still strong despite rising mortgage rates

New Hampshire housing market still strong despite rising mortgage rates

Realtors says sellers still in good position

Updated: 5:16 PM EDT Jun 24, 2022

A combination of record-high prices and rising mortgage rates are leading to a slowing in the national housing market, but the market in New Hampshire remains strong.Adam Gaudet, president of the New Hampshire Association of Realtors, said there has been a slowdown, but the market is still strong. He said that can be seen when looking at new home construction.”I’m seeing a lot of new construction going up, and I’m seeing them go under contract sometimes within the first couple of days on the market,” Gaudet said.Prices for homes in New Hampshire are also at record levels. The median sale price for a home is $460,000, a relatively recent increase.”Since 2019 until today, we’ve gone from $300,000 to $460,000,” Gaudet said.One thing that could slow the housing market is rising mortgage rates. The average rate on a 30-year home loan climbed to 5.7%. According to Freddie Mac, that’s the highest since November 2008, and Gaudet said it’s affecting buyers.”I’m seeing buyers who were previously looking in that $440,000, $450,000 range are now looking at homes in that $390,000, $400,000 range,” he said.It’s also affecting how much sellers can get for their homes. But Gaudet said sellers remain in a good position.”We are seeing, still, multiple offers, strong turnouts at open houses, but it’s just less of that frenzy,” he said.He noted that another factor that has fueled the housing market in New Hampshire has been people moving in from other states.Gaudet said mortgage rates are likely to rise, possibly higher than 6%. He said anyone looking to buy a home should lock in a rate now. Experts also recommend that anyone with a variable-rate mortgage switch to a fixed rate to avoid further increases.