As I find myself sitting at my desk with the sun a little higher in the sky, the temps creeping up with promises of spring around every corner, it's a perfect time to reflect on real estate in 2023, and to firm up some projections for 2024.

According to statistics provided by the New Hampshire Association of Realtors, there were 11,620 single family homes sold in New Hampshire in 2023, which was down 19.1% from 2022. Looking back even further, that is the lowest number of homes sold since 2011, in which we were in the middle of a real estate meltdown. Looking back 20 years, in 2003 there were 16,044 homes sold, 4,424 more than in 2023. Add to that, NH's population has grown over 200,000 people in those 20 years, from 1.2 million to over 1.4 million. To say we have had tight inventory is an understatement! Tight inventory has led to continued price appreciation with the median sale price in 2023 coming in at $470,000, up 6.8% over 2022.

Is this tight inventory going to abate anytime soon? The best estimate is yes, there will be more inventory available in 2024, but still less than we would like. As of the end of January 2024, we had 1.3 months of inventory available, compared to only .8 months as of January of 2022, a small but significant increase. A truly balanced market is one that has between 3 to 6 months of inventory available, and that will take a bit more time to achieve. Interest rates have stabilized in the mid 6% to mid 7% range, and forecasts show that there may be some downward movement int he 3rd and 4th quarters of 2024. However, the increase in home prices have also stabilized, and we are expecting a more traditional 3% to 5% price appreciation in 2024.

We are excited about the market in 2024, with more inventory becoming available, interest rates stable, and prices leveling off. Good Buyer demand with more Sellers ready to move on, all bode well for a healthy & robust marketplace in 2024.

As always, we are happy to meet with you and have a confidential discussion about your personal goals for 2024. We look forward to being of service.

-Andy Smith, CCIM
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Andy has over 32 years experience in the Real Estate Industry. In 2004 he was designated as a Certified Commercial Investment Member (CCIM), a recognized expert in the disciplines of commercial and investment real estate. He is a founding Member of the NH Commercial Investment Board of Realtors, having served as a Board member, Treasurer, and President. In 2004 he was named the board's Realtor of the Year. Additionally, he is a past trustee for the Society for the Protection of New Hampshire Forests, a past Director of the Northern New England Real Estate Network, is a member of the Littleton Rotary Club and serves on the Board of Directors for The Guaranty Bancorp/Woodsville Guaranty Savings Bank. Andy was awarded the Littleton Area Chamber of Commerce 2007 Business Leader of the Year. In his spare time he can be found on the tennis or squash courts, skiing, or riding one of his motorcycles. Andy lives in Twin Mountain with his wife Jackie, and enjoys spending time with their son and grandchildren in Colorado.