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NH home affordability index is at all-time low

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New Hampshire’s affordability index is at the lowest it’s been since 2005, which it was first created. NHAR graphic

New Hampshire single-family housing purchase costs are at record low affordability for the state’s residents, according to the monthly residential market report by the New Hampshire Association of Realtors.

The May affordability index was 66, which means that the median New Hampshire income is 66 percent of what’s necessary to qualify to buy a median-priced home. The index measures price, current interest rates, property taxes and insurance for a median-priced home. (Median means half of the prices are higher and half are lower.) 

The last time the affordability index for a single-family home was at 100 was January 2022. May’s 66 rating is the lowest the index has been since 2005, when it began. 

The median sales price for a single-family home in New Hampshire in May was $465,000, up from $452,500 in April. Condominiums reached the $400,000 median sales price threshold in May for the first time, up from $360,500 in April. The highest county median in the state was Rockingham, at $585,000 and the lowest was Coos, at $270,000.

The monthly New Hampshire Association of Realtors sales report, by county, for May. NHAR graphic

The most recent median individual income in the state is $76,600, according to the U.S. Department of Housing and Urban Development. Countywide, that ranges from $49,070 in Coos County to $88,480 in Rockingham County.

While sales are down from this time last year, they’re up slightly from April. Inventory, too, while still historically low, is inching up slightly.

“While fluctuating interest rates have pushed some buyers to the sidelines, a shortage of inventory is also to blame for lower-than-average home sales this time of year, as current homeowners, many of whom locked in mortgage rates several percentage points below today’s current rates, are delaying the decision to sell until market conditions improve,” the monthly report said.

Some of May’s key New Hampshire residential market real estate numbers are:

Median sales price: $465,000 single-family home ($452,500 in April, $460,000 in May 2022, $449,000 year to date); $400,000 condo ($360,500 in April, $348,000 in May 2022, $360,000 year to date)

Affordability index: 66 for a single-family home (68 in April, 73 in May 2022); 76 (86 in April, 96 in May 2022)

Days on market: for a single-family home, 26 (16 in May 2022, 35 year to date); for a condo, 30 (15 in May 2022, 32 year to date)

Percentage of list price received: 102.7% (101.4% in April, 105.2% in May 2022, 100.7% year to date); 102.7% for a condo (103.2% in April, 104.1% in May 2022, 101.7% year to date)

Months supply of inventory: 1.4 for single-family homes (1.2 in April, 1.2 in May 2022); 1.3 for condos (1.1 in April, 1.0 in May 2022)

Pending sales: 1,397 single-family homes (1,049 in April, 1,639 May 2022); 364 condos (344 in April, 469 in May 2022)

Volume of closed sales: $529.7 million for single-family homes ($397.7 million in April, $656.3 million in May 2022); $151.6 million for condos ($117 million in April, $167.4 million in May 2022)

Pending sales: for a single-family home 1,397 (1,049 in April, 1,639 in May 2022); for a condo, 364 (344 in April, 469 in May 2022).



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About this Contributor

Maureen Milliken

Maureen Milliken is a contract reporter and content producer for consumer financial agencies. She has worked for northern New England publications, including the New Hampshire Union Leader, for 25 years, and most recently at Mainebiz in Portland, Maine. She can be found on LinkedIn and Twitter.

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