At a recent Business After Hours event held in our Plymouth office, I reflected on how wonderful it was to gather again. We were delighted to see a record crowd coming together for some comradery and great conversations between new and old friends. As is often the case, many of the conversations I had turned to real estate, and I observed there were a few topics which seemed to be on the minds of most.

INVENTORY- I reported in the last issue that unit sales in NH were down 19.1% in 2023 compared to 2022. Although it may not seem like much, we are seeing more homes on the market year over year. In March of 2021, there was only .80 month's supply of homes listed on the MLS. That increased slightly to .90 months in 2022, 1.10 months in 2023, and now in March of 2024 we reported a 1.30 month's supply. This is still a long way from the 3-6 months' supply we see in a more stabilized market, but it has been a slow and steady improvement. Sellers are ready to sell, and Buyers can find homes to buy.

INTEREST RATES - The economy has continued to show resilience, despite the Fed rate being raised 17 times in 2 years, going from .25% to 5.5% today. The rate increases have stifled inflation, which has been dramatically reduced from the 8%-9% range to the mid 3% range. However, this is still a strong economy, and there is still strong demand for housing even at the current rates. Those that forecast such things have gotten the predictions wrong for years. They said interest rates were going up much sooner than they did, and they have been predicting interest rate cuts in early summer. Don't bet on it. The soonest I believe we will see any cuts from the Fed's will be in the 4th quarter of this year. However, mortgage rates don't track the Feds rate exactly. When futures markets foresee lower interest rates, mortgage rates tend to decline in anticipation-even if the Fed's has not yet cut rates. I expect you will see rates declining over the summer to the mid to lower 6% range. Many of our community banks offer rate buy-downs, where you can pay a small up front fee to reduce the mortgage rate for 1, 2 or 3 years, which then may allow you to refinance at a lower rate.

NAR LAWSUIT SETTLEMENT- There were many questions asked about the recent news that the National Association of Realtors, and many large franchise companies settled a class-action lawsuit which revolved around Buyer Agency fees. Although much misinformation has been reported, the agreement centered around eliminating the practice whereby the Seller agreed to pay to a certain pre-determined percentage of the Selling price to an agent that brought the Buyer. This offer was communicated through the Multiple Listing Service (MLS), which will no longer be allowed. The result is that Buyers, and Buyer Agents will need to discuss the Buyer Agent fee ahead of time and agree on how it will be paid. It's important to note that the lawsuit was brought forth in states that did not require written Buyer Representation Agreements. New Hampshire, Maine and Vermont all have required this form for decades, and consequently, no firms in these three states were involved. In the end, better communication, more transparency and a clearer understanding of Agents' fees, and how they might be shared is a positive move which we support.

In closing, the summer market has started, and by all accounts, 2024 will be a good year to buy and sell real estate. Prices have settled down to a more traditional appreciation rate, financing is both available and affordable, and Buyers will see more to choose from. Please reach out to one of our more than 75 full-time professionals to see how we can help you achieve your real estate goals.

To learn more about Andy Smith, CCIM feel free to click here.

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Andy Smith, Broker/Owner of Badger Peabody & Smith Realty has over 30 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 enjoy spending time with their son and grandchildren in Colorado.