Bill Weidacher, a long-time veteran of the New Hampshire real estate industry, has never seen anything like it. 

Sure, he’s witnessed the years-long decline in the number of homes listed for sale in New Hampshire, a trend that’s been occurring across much of the country for a number of years now. 

But as of late March – a period that most consider the start of the big spring home-selling season in the Granite State and elsewhere across New England – there were only about 870 single-family homes listed for sale anywhere in the state. 

Prior to the pandemic, that number would have stood at about 5,000 in 2019 or above 10,000 in 2015, said Weidacher, an operating partner at Keller Williams Realty-Metropolitan. 

“It’s incredible,” Weidacher said of today’s low listings. “The real estate market all comes down to one thing these days: We need more inventory. Inventory has been a challenge for years now. But now it’s getting critical.” 

“It is hard to wrap your mind around this,” Joanie McIntire, associate broker at Caldwell Banker J Hampe Assoc. in Concord, said of the low number of listings today. 

“In a more balanced market we would see [listings in the] high thousands,” said McIntire, president-elect of the New Hampshire Association of Realtors. “I feel confident that there will be an increase in inventory as the spring market begins. However, it’s difficult to see a path to a more balanced market.”  

Price Increases Vary by Region 

Besides inventory woes, New Hampshire’s real estate market has been hobbled of late by a number of other factors, including rising mortgage interest rates and economic uncertainties that have tamped down demand for home buying.  

To be clear: Overall home prices continue to rise across the state, with year-to-date median prices for single-family homes hitting $399,933 through February, up 8 percent from the same period in 2022, according to data from The Warren Group, publisher of The Registry Review.  

The median price for single-family sales that closed in February was $401,667, up 10 percent compared to February 2022. 

Meanwhile, the year-to-date number of statewide sales through February plunged by 26 percent, to 983, compared to the same period last year. February sales of single-family homes fell to 434, down 23 percent compared to the same month in 2022. 

But these statewide stats hide the fact that, at the county-by-county level, prices are all over the map in New Hampshire, with single-family sale prices substantially increasing, moderating or declining, depending on where you are. 

 Year-to-date median sale prices increased by 18 percent in Coos and Strafford counties and by 12 percent in Merrimack County, according to The Warren Group. 

Meanwhile, year-to-date single-family sale prices continue to rise in other counties, such as Rockingham and Belknap, but at more modest rates of 1 and 2 percent, respectively. Grafton County has seen 0 percent year-to-date price growth so far in 2023. 

And counties such as Carroll, Cheshire and Hillsborough saw year-to-date single-family sale prices fall from 1 to 4 percent through February, compared to a year ago. 

Multiple Offers Still Seen 

“There’s been some stabilization of prices,” said Ben Cushing, president of the New Hampshire Association of Realtors and vice president and regional manager at Four Seasons Sotheby’s International Reality. “There are some pockets where you see price increases, but it’s prices stabilizing or decreasing a bit in other pockets.” 

In Cushing’s northwest market – which includes the Hanover area in Grafton County – demand is still high for single-family homes. It’s just not as high as in recent years. 

“If a home is priced well, it’s selling,” he said. “We’re still seeing multiple offers. We’re still seeing all-cash buyers.” 

Adam Dow, a broker at Keller Williams-Adam Dow Group in Wolfeboro, agreed demand is still strong – just not quite as strong as in the immediate past. 

He noted that one house that needed work was recently listed at about $350,000 – and attracted 10 offers.  

“At the open house, there was a line out the door at 8:30 a.m.,” he said. 

Towns ‘Committed to NIMBYism’ 

Though higher interest rates – now hovering near 7 percent for some 30-year loans – and an up-and-down economy have tamped down demand for homes a bit, the main problem remains lack of dwellings for sale in New Hampshire, real estate market-watchers agree.  

The low supply is caused by a number of factors, including elderly homeowners unwilling to sell for downsizing purposes with the supply of homes for sale so low and prices still high, industry officials say. 

“There’s often no place for them to go if they sell their homes,” said McIntire . “There’s no guarantee they’ll get what they want. It’s creating a kind of logjam in the market.” 

Another reason for low inventory is lack of new home construction, a trend many blame on tough local zoning laws. 

Dow said voters in Wolfeboro recently voted down a package of zoning reforms, some of which were merely “bookkeeping” measures intended to update language of legal language. 

“Townships are still committed to NIMBY-ism,” said Dow.  

As for the spring outlook, most brokers and agents interviewed for this story see inventory increasing in coming weeks and months. But it won’t be enough to fundamentally shift the market, they say. 

“We’re still seeing lot of people who want to buy here in New Hampshire,” said Cushing. “The big question is supply. In May and June, I think we’re going to see an uptick in homes for sale. But it will be nowhere near the number [of listings] as in years past.”