The ingredients are all there for a seller’s housing market this spring and for the rest of the year: Low interest rates, solid economy, strong demand and, once again, low inventory and little new construction, industry officials say. 

“Buyers are going to have to be on their toes,” said Nancy Kingston of Nancy Kingston Realty, associated with Keller Williams Coastal Realty in Portsmouth. “It’s been very busy and stressful for buyers so far. It’s definitely a seller’s market.” 

For a brief moment this winter, it appeared the market might actually be headed for a breather.  

Following last year’s solid showing across the state, the median price for a single-family home increased to $265,000, marking the sixth straight year of price increases and finally surpassing pre-recession highs. 

The New Hampshire Association of Realtors reported a 5.5 percent increase in new single-family listings and a 10.2 percent jump in new condominium listings in January, suggesting that supply problems might be easing as the spring season slowly approached. 

Those hopes were dashed by February, with new listings for single-family homes falling by 9.7 percent and for condos by 21.5 percent. Meanwhile, the total monthly inventory was down 11.1 percent for single-family homes and off by 13.6 percent for condos. 

While winter months are traditionally slower, the same period in recent years has reliably signaled approximately where the markets were headed – and the February numbers and anecdotal evidence for March and early April indicate continued tight supplies amid high demand.  

No Slowdown in Hot Markets 

Hillsborough and Rockingham counties, the state’s two most populous counties, are reportedly picking up this spring where they left off last year, when both counties saw median prices rise to $283,000 and $355,000, respectively, amid falling sales, according to real estate data, analytics and market insight firm The Warren Group, publisher of The Registry Review.  

“It’s been flying,” Rachael Bohac, an agent at Keller Williams Metropolitan in Bedford, said of the early spring market. “The inventory is tight and yet the demand is still there.” 

Located just west of Manchester in Hillsborough County, Bedford is seeing multiple offers on homes so far this spring, she said. One of her clients recently fielded three offers on a single-family home in town, she noted. 

The early spring market is going strong in nearby communities as well, such as in Londonderry, Bohac said. One Londonderry condo recently had eight offers from prospective buyers before it sold. 

The town of Auburn, just east of Manchester in Rockingham County, is also experiencing “really tight inventory” and “existing homes area going very quickly,” she added. 

Massachusetts Residents Help Drive Demand 

The Nashua market “remained very strong” in the early weeks of spring, said Stephan Morrissey, an associate broker at Allison James Estates & Homes, though he stressed there are “a lot of prices pressures” for entry-level buyers due to a lack of inventory. 

Starter homes, such as small Capes and ranch homes in the $250,000 range, are getting snapped up fast, while larger homes, such as colonials in the $350,000 to $400,000 range, are also selling strongly, Morrissey said. 

“There’s no sign of it abating,” Morrissey added of the market in general, noting he’s still seeing many Massachusetts residents crossing into New Hampshire to buy in the Nashua area.  

The 2018 median sale price in Massachusetts’ Essex County, on the northern side of the Boston metro just across the New Hampshire border, was $440,000 for a single-family home and $285,000 for a condominium, according to The Warren Group. 

As long as the economy remains strong and interest rates continue to hover in the 4 percent range, Morrissey said he doesn’t see the market softening much compared to last year. 

In Portsmouth, the market remains hot after median single-family home prices jumped to $455,000 in 2018, up from $412,000 in 2017. 

The Portsmouth-area market in general is “out of control,” Kingston said. One Seacoast single-family home recently sold after receiving seven offers within 24 hours.  

“It was crazy,” she said.  

The Seacoast area is seeing all types of buyers – young professionals, families, empty nesters and the elderly, she said.  

“Millennials are all over the place – and they have money,” Kingston added.  

Cash Sales Up in Lakes Region 

In the Lakes Region to the north, the market for secondary homes is humming along. 

A small island cabin on Lake Winnipesaukee recently sold for $300,000, sight unseen, said Randy Parker of Parker Realty Group, associated with Maxfield Real Estate in Wolfeboro. Meanwhile, two properties were snapped up within days of being put on the market, he said. 

While there have been no bidding wars for properties in the Lake Winnipesaukee area, inventory has been tight. Average home prices are now in the $450,000 to $500,000 range and waterfront properties start at the seven-figure mark and go higher, he said. 

About 30 percent of sales in the region are now all cash, he added.  

“We’re still in a strong market,” Parker said, with last year’s momentum carrying into early 2019. 

Ron Magoon, president of Franklin Savings Bank in Merrimack County, said community banks have been hit hard by online mortgage companies stealing business from traditional lenders. Still, he said his bank is so far generally seeing an increase in business this year. 

“Activity is picking up,” he said. “It looks like it’s going to be a decent year.” 

However, echoing others’ sentiments, Magoon said the main challenge remains the same: Lack of inventory. 

“That’s what I’m hearing,” he said. “There’s not enough inventory out there.”