We’re halfway through 2023 now, and time for an update on how the Portsmouth NH real estate market is doing so far. The chart below tracks single family home sales in Portsmouth from January, 2022 through June of 2023. The average sales price for single-family homes in Portsmouth NH stands at $856,377, a 3.7% increase over June of 2022. This figure underscores the stability of the market and indicates sustained demand in the area.
According to the data for condominium sales in Portsmouth, NH, during the specified time period, the average condo price was $829,535. This figure represents a significant increase of 28.4% compared to June of 2022.
The rise in condo prices can be attributed to factors, such as increased demand and a limited supply in the Portsmouth, NH real estate market. It indicates a strong market for condominiums in Portsmouth, with buyers willing to pay a premium for this type of property.
This upward trend in condo prices is indicative of a thriving real estate market in Portsmouth, with a positive outlook for sellers and potential investors. It’s worth noting that these figures provide a snapshot of the market during the given time frame and should be considered in conjunction with other relevant data to form a comprehensive understanding of the real estate landscape in Portsmouth, NH.
To understand the local real estate market you’re best served by consulting with local real estate experts who can fully explain the current market and give you guidance to make the best decisions for you and your goals. We’re happy to sit down with you and help you create a real estate road map to your next home. Click here to schedule a no obligation consultation with Ann Cummings and Jim Lee, local experts at RE/MAX Shoreline.
Pending sales, that is sales in progress but not yet closed, are a good indicator of short term market health since these sales will become comparable sales in the next 30 to 60 days. Looking at June 2023 we see 14 pending sales versus 20 June of 2022, a 30% decline.
One good indicator of the current market direction is the absorption rate of homes being sold. The absorption rate is simply the amount of time it would take to sell all the homes currently for sale if no new listings were added to the inventory. To calculate the absorption rate for your area you only need to know two things: First, how many active listings are there in your market today? Second, how many sales were there in the past 30 to 180 days?
Generally around 6 months is known as a “balanced market”, that is one in which neither the seller or the buyer holds an advantage over the other. More than 6 months supply means that houses are not selling as well as they should and some sellers are willing to make concessions to sell their house. Under a 6 months supply means that houses are selling at a brisk pace, the lower the number, the faster the rate of sale. In Portsmouth at mid year, the absorption rate is 2.1 months which is indicitive of a strong seller’s market.
So what does mean if you are a buyer or seller in Portsmouth NH right now? 2.1 means the market is tilted in favor of the seller because there is such a small supply of homes for sale. To a seller that would mean you can be more aggressive on your pricing and also hold out for an offer that is closer to your asking price assuming it’s realistic.
To a buyer that means you need to come in with an offer pretty close to the asking price or you run the risk of not buying the home you want. A short supply of homes for sale also means often multiple buyers are trying to buy the same house and causing bidding wars which runs prices up even above the asking price sometimes.
So whether you are a buyer or seller one very important piece of information you should be getting from your Realtor is the current absorption rates in the areas you’re looking to buy or sell in. In real estate like most businesses, it’s critical to know your numbers to be successful. Based on our many years of experience and expertise in the New Hampshire Seacoast and southern Maine markets, we know the numbers for all towns and areas and are happy to share them with you. Give us a call soon and let’s talk, Ann Cummings and Jim Lee, RE/MAX Shoreline.