Home Buying in New Hampshire
Whether you dream of owning a charming colonial in the heart of a quaint New England village, living in a modern home near a bustling urban area, or escaping to a lakeside retreat, New Hampshire offers it all!
The Granite State, celebrated for its picturesque landscapes, historic towns, and close-knit communities, combines rural serenity and access to many cultural and economic opportunities in nearby Massachusetts and Vermont. However, homebuyers face several challenges, including fluctuating home prices, a competitive real estate market, and varying property tax rates across regions.
As with many of its New England neighbors, the New Hampshire housing market has seen significant changes in recent years. The state has become increasingly popular among homebuyers exiting neighboring states, particularly Massachusetts, in search of a lower cost of living. As a result, New Hampshire has seen a surge in demand, which has led to higher home prices and lower inventory levels.
The median price of a home in New Hampshire, which is right around $500,000, is higher than the national average and higher than the median home price in Vermont but less than the median home price in Massachusetts. New Hampshire is a seller's market, with higher home prices and lower inventory levels, and homes selling quickly, usually in less than a month.
When buying a home in New Hampshire, you'll need to get your finances in order, consider certain factors that will help you find the right property to fit your needs, and enlist the help of a real estate professional who can help you navigate the state's unique housing market to find the home of your dreams.
Understanding New Hampshire Housing Trends
Understanding current housing trends is essential for anyone considering a home purchase in New Hampshire.
Consider the following factors:
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New Hampshire Median Home Prices
New Hampshire's median home price has been rising steadily, reflecting a strong demand for housing. The current median is around $500,000, higher than the national average yet still more affordable than in neighboring Massachusetts. The median home price is significantly higher in some of the state's most desirable areas, like in the Lakes Region or towns near the state's border with Massachusetts.
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Number of Homes Sold
New Hampshire boasts an active housing market with roughly 1500 homes sold monthly. However, that figure often fluctuates based on the overall economic climate and the time of year, with more home-buying activity in the spring and summer months, when the weather is more predictable.
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Days on Market
In New Hampshire's housing market, the median days on the market (DOM) figure is relatively low, with most homes selling in less than 30 days. It is not uncommon for New Hampshire homes to sell even faster, especially in some of the state's more competitive regions, where properties are close to major highways and job centers. Homes in this area have been known to sell within a week of listing. In contrast, homes for sale in some of the state's more remote areas can take longer.
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Housing Supply and Inventory Statistics
Like many states, New Hampshire grapples with a low inventory of homes. Even though inventory has been trending upward, the state has struggled to keep up with demand, particularly in southern New Hampshire, the Massachusetts border, and the Lakes Region. New Hampshire's housing supply shortage has increased home prices and buyer competition.
How to Find the Right Home to Buy in New Hampshire
When it comes to home buying in New Hampshire, working with a local real estate professional is imperative. Realtors can help you find the best home based on your goals, needs, and financial situation. A local real estate agent with a working knowledge of the area's housing market can guide you. Be sure to choose a local agent with good communication skills, experience, proper licensing, and strong references. You can also lean on family and friends for referrals.
Finding the Right Home
Here are some elements to consider when home-buying in New Hampshire:
Location
New Hampshire offers homebuyers a variety of living environments, each with unique characteristics. From its quiet rural towns to its bustling urban centers, location will be one of the most critical factors in your decision.
Consider the following:
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Urban vs. Suburban vs. Rural: Major cities like Manchester and Nashua offer residents an urban environment with access to shopping, dining, and entertainment. They are ideal for anyone who wants to live close to major employers and desires a vibrant, fast-paced lifestyle. Homebuyers will discover a middle ground in suburban communities like Bedford and Londonderry. These areas often have excellent schools, family-friendly neighborhoods, more space, and easy access to major highways, making them popular with families and professionals. New Hampshire's rural towns, like those in the White Mountains or the Monadnock Region, are ideal for those seeking tranquility and a connection to nature.
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Proximity to Work: Many New Hampshire residents work in the neighboring state of Massachusetts because of its proximity and higher wages. Towns like Salem and Derry, located along the Interstate 93 and Route 3 corridors, are especially desirable for commuting professionals. In New Hampshire, proximity to highways plays a significant role in most homebuying decisions, especially for those who travel for work.
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Access to public transportation: Compared to more urbanized states, New Hampshire offers limited public transportation. However, commuter buses and park-and-ride facilities provide access to the Boston metro area and other Massachusetts regions. For those who rely on public transit, Nashua and Manchester offer more transportation options than other areas of the state.
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School districts: For homebuyers with children, the quality of the local school district is often a top priority. New Hampshire is known for its strong education system, though school quality can vary significantly among districts. New Hampshire's schools are ranked high on both the national level and among other New England states. Towns like Hanover, Bedford, and Hollis are recognized for having some of the best schools in the state.
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Property Taxes: Because New Hampshire does not have a state income or sales tax, local municipalities rely heavily on property taxes to fund public services and schools. Though property tax rates may vary across the state, New Hampshire is known for having some of the highest property taxes in the country. Homebuyers must factor property taxes into their overall budget and consider how they will impact long-term affordability.
Type of Home
In New Hampshire, various home types suit a diverse range of lifestyles. Homebuyers throughout the state have many options, from historic homes and rural retreats to modern townhouses.
Here's a sampling:
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Single-Family homes: The most common housing option in New Hampshire is a single-family home. It offers privacy, space, and the freedom to customize your property as you see fit. Prices vary depending on size and location, but New Hampshire has many single-family homes available, old and new.
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Condominiums: Condominiums are popular in urban areas like Manchester and Portsmouth. They are ideal for home buyers who prefer low-maintenance living. Condominium owners often benefit from shared amenities, like fitness centers, swimming pools, and on-site security. They are typically located near shops, restaurants, and public transportation.
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Townhomes: Townhomes are generally more affordable than single-family homes and offer more privacy and space than a typical condo. Usually located in suburban areas, townhomes may be a great option for first-time homebuyers or those who want to downsize.
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Historic houses: New Hampshire is steeped in a rich history, and many of its towns feature charming historic properties that often date back to the 18th and 19th centuries. They are especially prevalent in cities like Portsmouth, Concord, and Exeter. However, homebuyers should remember these old homes often require more maintenance and upgrades than newer home options.
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Waterfront homes: New Hampshire offers numerous options for homebuyers who dream of waterfront living. The state has many lakes, including the popular Lake Winnipesaukee, rivers, and properties on the Atlantic Ocean. From seasonal cottages to luxury estates, there are plenty of waterfront properties.
The Home Buying Process in New Hampshire
The process of buying a home in New Hampshire is like that in other states and typically involves the following steps:
- Get a prequalification letter from your lender.
- Hire a local real estate agent.
- Make an offer on a home.
- Schedule a home inspection.
- Close on your new property.
Financing Your Home Purchase
Depending on your financial situation and the type of property you're buying, there are several ways to finance your New Hampshire home purchase.
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Traditional Mortgages
Traditional mortgages are a common financing option among New Hampshire homebuyers. There are usually two types of traditional mortgages to choose from:
- Fixed-rate mortgages: These home loans have a stable interest rate for the life of the loan and are popular because of their predictability.
- Adjustable-rate mortgages (ARMs): These home loans have an interest rate that may fluctuate based on market conditions. While they often offer lower initial rates, ARMs come with a risk of higher payments in the future.
New Hampshire Mutual Bancorp and Eastern Bank are leading lending institutions frequently used by New Hampshire homebuyers to obtain traditional mortgages. These lenders offer competitive rates and personalized service, making them reliable choices for the state's fixed-rate or adjustable-rate mortgage options.
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Government-Backed Loans
Government-backed loans can be an excellent option for qualified homebuyers. The New Hampshire Housing Finance Authority provides information about government-backed loans available to New Hampshire homebuyers.
Options include:
- Federal Housing Administration (FHA) Loans: FHA loans are insured by the Federal Housing Administration and allow for lower down payments, making them accessible to buyers with lower credit scores.
- Veterans Assistance (VA) Loans: Available to veterans and active-duty military members, VA loans offer competitive interest rates and often require no down payment.
- United States Department of Agriculture (USDA) Loans: Designed for rural homebuyers, USDA loans offer low interest rates and may require no down payment. New Hampshire has many regions that qualify for USDA loans, making them an attractive option for those looking to buy a home in rural or semi-rural areas of the state.
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Down Payment Assistance Programs
New Hampshire offers several down payment assistance programs to help homebuyers with downpayments and closing costs. Researching these programs is a good idea, especially for first-time homebuyers, because they can significantly reduce the upfront cost of buying a home.
Home Insurance in New Hampshire
New Hampshire does not legally require homeowners to carry home insurance, but most mortgage lenders require it as a loan condition. Home insurance is an important piece of the home ownership puzzle because it protects your investment from potential losses from fires, theft, and certain natural disasters.
New Hampshire is prone to flooding and winter storm damage, so anyone buying a home in one of the state's flood-prone areas will likely need flood insurance as an add-on to their policy. The average cost of flood insurance in the state is $1,000. That's in addition to the cost of basic home insurance, which, in New Hampshire, is around $1,000.
Investigating these potential costs is essential when budgeting for your new home.
Home Buying Challenges in the New Hampshire Market
New Hampshire homebuyers face several challenges when entering the state's housing market, including:
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A competitive market with rising prices: The demand for homes in New Hampshire, especially in areas close to the state's border with Massachusetts, has caused prices to rise and increased competition among buyers. This recipe makes it difficult for homebuyers, particularly those entering the market for the first time and those with limited budgets, to find a home within their means.
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High property taxes: Since New Hampshire doesn't charge state income or sales taxes, property taxes are the primary source of revenue for local governments and are often higher than the national average. New Hampshire has the fourth-highest property tax rate in the country, with an average effective rate of 1.77% and a median annual property tax bill of about $6,000.
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Seasonal market fluctuations: The seasons heavily influence the real estate market in New Hampshire. The spring and summer months are more active and thus more competitive. There are typically fewer listings and buyers in the fall and winter months.
Navigating New Hampshire's Housing Market with Confidence
When home buying in New Hampshire, you will likely face a unique blend of challenges and rewards. Although the state is diverse enough to cater to various preferences, its competitive housing market requires prospective buyers to be well-prepared.
Buyers can successfully navigate the unique New Hampshire housing market by understanding the subtle nuances of regional housing trends, such as the impact of location, property taxes, and seasonal market fluctuations. Working with a knowledgeable local realtor who can provide guidance tailored to your specific needs and conducting thorough research is also critical to helping you find the right property.
Ultimately, while the New Hampshire housing market presents significant challenges, especially for first-time homebuyers and those with a limited budget, it also offers the opportunity to find a home that suits your lifestyle. With the right approach, you can confidently make one of the most significant investments of your life in the Granite State.
Home Buying Guide
Instant Access to New Hampshire Property Records
- Owner(s)
- Deed Records
- Loans & Liens
- Values
- Taxes
- Building Permits
- Purchase History
- Property Details
- And More!
Instant Access to New Hampshire Property Records
- Owner(s)
- Deed Records
- Loans & Liens
- Values
- Taxes
- Building Permits
- Purchase History
- Property Details
- And More!