Housing Market Forecast for the second half of 2023
We’re over halfway through 2023 now so let’s take a look at what’s happened in the first half of the year and make some predictions for what the Portsmouth, NH housing market for the rest of the year might look like.
Home price Forecast
for single-family homes and condos in Portsmouth and the New Hampshire Seacoast continue to appreciate and I note that Portsmouth crossed the million-dollar mark for average sales price in July for the first time ever. That figure was driven by several multi-million dollar sales of single-family homes and two large new homes developments coming on line with million-dollar price points. On the bright side, there are still some relatively reasonable prices for single-family homes and condos to be found in Portsmouth and the Seacoast region. I looked in the local Multiple Listing System just now and found 31 homes for sale in Portsmouth with starting prices in the low $400K range. I predict continued home price appreciation for the remainder of 2023 and beyond. Why? Because home ownership is still part of the American Dream for single adults and families. It’s one of the best ways to build wealth and enjoy the pride and security homeownership offers.
One important factor,
especially for homebuyers, is where are interest rates headed. The chart below shows what Fannie Mae, the Mortgage Bankers Association, and the National Association of Realtors predict for the rest of the year. I agree with their assessment. However, there are ways to get a better rate either permanently or temporarily by buying down the interest rate upfront or with an adjustable interest mortgage. In our buyer consultation, we talk about financing and how to get the best interest rate for your situation
The bottom line for the rest of the year.
- Low inventory will continue to be a challenge for buyers but there is a new home out there with your name on it. You just have to keep looking and persevere.
- Mortgage rates for the second half of 2023 will depend on inflation. Historically mortgage rates come down as inflation cools.
- Working with an experienced and local Realtor to get your house sold or to buy a new home is more important than ever. We’re happy to talk with you and answer any questions you have on the market and selling or buyer. Contact Ann Cummings and Jim Lee here. If you don’t live in the area yet we’re happy to do a virtual consultation either via Zoom or telephone.