If you’ve been scanning the latest housing headlines, you’ve probably noticed a wave of dramatic articles predicting foreclosure spikes and housing market turmoil. But here’s the truth: the New Hampshire Seacoast real estate market is stable, prices are still rising (albeit more moderately), and we’re not seeing signs of distress—despite the clickbait. It’s time to get out our real estate crystal ball and see what the rest of 2025 and early 2026 looks like:
Whether you’re buying or selling a home in Portsmouth, Rye, Kittery, or York, understanding the real story behind the numbers can help you make confident decisions. Here’s what Ann Cummings and Jim Lee, seasoned REALTORS® with RE/MAX Shoreline in Portsmouth NH, are seeing in the local market.
Mortgage Rates: Not Dropping Anytime Soon
Many homebuyers are holding off, hoping for a big drop in mortgage rates. But recent data shows that may not be a realistic strategy in 2025.
According to forecasts from Fannie Mae, the Mortgage Bankers Association (MBA), and Wells Fargo, 30-year fixed mortgage rates are expected to stay in the 6% range through the rest of 2025 and into early 2026. The average forecast for Q4 2025 sits at 6.58%.
Bottom line? If you’re waiting for rates to plunge, you could miss the perfect home—and prices are still inching upward.
Prices Are Rising—But More Gently
It’s true: home prices in Portsmouth and surrounding coastal towns are still rising, though at a more modest pace than during the pandemic surge. That shift benefits both buyers and sellers.
In June 2025, the median sales price in Portsmouth for single-family homes and condos combined reached $874,000—a 7.4% increase over June 2024. For buyers, the cooling pace offers more time and less competition. For sellers, equity remains strong and demand continues, especially for desirable locations along the NH Seacoast and Southern Maine coast.
What About All the Foreclosure Buzz?
Yes, some headlines mention rising foreclosure activity—but context is everything.
According to data from ATTOM, foreclosure activity remains historically low. In the first half of 2025, only 1 in every 758 U.S. homes received a foreclosure filing—that’s approximately 0.13% of all properties. To put this in perspective, during the height of the housing crisis in 2010, the rate was dramatically higher: 1 in every 45 homes was in foreclosure.
Importantly, the majority of properties that enter the foreclosure process do not proceed to full foreclosure. Nationwide, only about 15% of homes with a foreclosure filing ultimately become lender-owned (REO). Most homeowners are able to resolve the situation—whether through a traditional sale, short sale, loan modification, or other workout options—before losing the property.
The key takeaway: lenders are not in the business of owning homes; they prefer to keep borrowers in their properties and receiving payments. Most are willing to work with homeowners to find solutions.
This is not 2008. The current market is fundamentally different. There is no crash on the horizon.
Bottom Line: This Market Is Solid
If you find a home that checks your boxes, it still makes sense to move forward—even if mortgage rates aren’t ideal. There’s an old saying in real estate:
“Marry the house, but date the rate.”
That means if the home is a great fit and you can comfortably afford the payment today, it’s wise to lock in the purchase price. Mortgage rates can always be refinanced later—but home prices rarely move backward on the Seacoast..
Want to know how this affects your next move?
Let’s talk. We keep a close eye on local trends across Portsmouth, Rye, Kittery, York, and surrounding coastal communities. Visit newhampshiremainerealestate.com for insights on living along the New Hampshire Seacoast and Southern Maine, and to browse the latest listings and price adjustments.
Call us anytime at 603.436.1221.
Jim and Ann are here to help you navigate your next move with confidence.
REALTORS Ann Cummings and Jim Lee, Certified Residential Specialists (CRS), Accredited Buyer Representatives (ABR), Endorsed by the National Association of REALTORS Committment to Excellence (C2EX)
