Price history
To look at the history of single-family home sales in Portsmouth, New Hampshire I went back 19 years to get a good timeline of what’s been happening with prices.
The chart above represents the median sales price of single-family Portsmouth homes from January 2005 through February 2024.
The median price means that half the sales were higher and half were lower. On January 2005 the median price was $330,000. By August 2016 that median had risen to $405,000. There was a peak in June 2018 at $534,903 and a drop by December 2019 to $485,000.
Fast forward to February 2024
February 2024 is the last full month we have sales data. That median price is $770,359. As the chart illustrates Portsmouth single-family home prices have risen steadily for the past 19 years.
Current market conditions in Portsmouth
The graph below illustrates clearly the steep decline in the number of homes for sale in Portsmouth.
We’ve gone from a high of 121 homes for sale in January of 2007 to a low of only 25 available homes at the end of this February. The lack of homes for sale is one of the factors driving up home prices and not just in Portsmouth. This lack of inventory is a common problem in most other towns and states.
2024 is going to remain a strong seller’s market in Portsmouth, NH
There are several reasons why I believe that.
- The number of homes for sale will remain relatively low. Many homeowners refinanced when rates were in the 2 to 3% range and do not want to give up that rate and become a buyer in this market.
- Mortgage rates are likely to stay above 5% for 2024. Inflation dipped to 3.1% in January of this year but that number remains well above the Federal Reserve’s target rate of 2%.
- New construction remains well below the pace needed to increase the housing stock enough to meet the demand. That’s being driven by the cost of materials, scarce land for development, and supply chain issues.
The average days on the market for a single-family home in Portsmouth is just 7 days and there is only a 2.4 monthly supply of homes currently for sale. Any number under 6 months indicated a seller’s market and the lower the number the stronger the market.
The bottom line
The data and information above illustrates clearly that today’s home sellers and buyers alike need to be represented by experienced agents who are familiar with the local market and trends in that market.
With over 40 years of successful experience each, Ann Cummings and Jim Lee are well qualified to represent you in your next home purchase or sale. We have the experience, the training, and the credentials to make your next real estate transaction smooth and stress-free. Let’s talk soon.
