New Hampshire Housing Market is Strong and Home Prices Are Up 6.49% Across the Country! [INFOGRAPHIC]
Let’s try to answer these questions based on what has happened in the past as well as what we know about the current real estate market.
It Comes Down to Supply and Demand
As always, home prices will be determined by the demand to purchase compared to the available inventory of homes for sale. For the last six years, demand has far exceeded the available supply which has resulted in the average annual appreciation to top 6% since 2012. That is far greater than the historic norm of 3.6% annual appreciation that we saw prior to the housing boom.
There are currently signs that housing inventory is increasing. Months supply of houses for sale matched last year’s numbers for the last two months after 37 consecutive months of decreasing inventory.
New construction in on the rise which is another positive sign that inventory will be increasing. As inventory begins to meet demand, we will see appreciation returning to more normal levels.