The Windham housing market is bracing itself for a new season of home selling and buying in the coming spring. The national real estate market has entered into a period of relative uncertainty – high inflation and interest rates have caused home prices and mortgage rates to soar due in part to the persisting strain on a rapidly depleting housing inventory. There is a high demand, and with labor and material shortages, it hasn’t been easy to keep supply up.
What do these trends bode for the future of Windham? The market is expected to slow down, but other than that, the limited supply will keep home prices higher than usual even as sellers lower their prices by a margin to renew buyer interest. The Windham market is still projected to be profitable and in favor of sellers.
Demand set to waver and stagnate
Already, the national real estate market has begun to see a gradual slowdown as high home prices and mortgage rates force buyers to reconsider. This year, the Windham market has seen significantly fewer sales than that of last year, but this could simply be a result of limited inventory. Regardless, the market will likely reach a standstill as many buyers are waiting to purchase properties in the wake of soaring mortgage and interest rates.
As demand decreases, sellers will feel the most pressure. In an attempt to entice buyers back into the market, sellers have begun to lower their prices little by little, which may be just enough to convince buyers to start buying again – especially as supply continues to run out. In a best-case scenario, a decrease in mortgage and interest rates nationwide could be the compromise that brings buyers back with little to no cost to the sellers.
Low supply will keep home prices up
Millennials and Gen Z have taken to the market in recent years. Many buyers will be faced with a crucial decision: buy property at current prices, or risk not buying property at all. There’s not nearly enough supply nor construction to satisfy the demand, and as more people graduate and look to buy a starter home, the market will only become that much more competitive. From 2021 to 2022, Windham has seen
a 27.2% decrease in new listings from 272 to 209. Buyers have dramatically outnumbered sellers and property listings over the past year alone.
This bodes great news for sellers. Even as sellers lower their prices to appeal to uncertain buyers, tilting the market toward a neutral state, low supply will prevent prices from dropping a significant amount. Should mortgage and interest rates come down, it’s likely a balanced market could even be in the future.
Should these rates ease up, buyers are more likely to return to the market even as home prices remain on the higher end. Unless construction speeds up and more homes are built, high home values may just be the norm for a while longer.
Cost of living in Windham
Compared to the national average, the cost of living in Windham is
35.9% higher but only 5.8% higher than the cost of living in New Hampshire as a whole. The percentage is based on several different components: housing, utilities, transportation, groceries, and healthcare services.
- Housing costs are 106.2% higher than that of the national average, and the median home price has actually risen by a fair amount. The most recent data from the New Hampshire Association of REALTORS® found that the median home price has increased by 16.8% of the value from the previous year. The average rent for a studio apartment in the area is $1446 and increases by $200-$400 per additional bedroom.
- Utility bills are 21.6% higher than the national average, but transportation is quite low at only 1.4% higher.
- Groceries are only 8.7% higher, while healthcare is actually lower than the national average – by an impressive 16.7%.
Although the cost of living is on the higher end, annual costs and expenditures depend on the number of people and dependents in a household. Overall, Windham residents are typically affluent and enjoy a high quality of life.
The final verdict
Overall, the market is heading toward a tepid state, with experts hoping for a balance between supply and demand. A housing bubble isn’t likely, thanks to low supply keeping prices up, but the pressure is on interest and mortgage rates to decrease if buyers have any expectation of returning to the market.
Still, it’s important for interested buyers to consider buying sooner than later – the housing inventory goes quickly. As of
October 2022, Windham’s housing supply is a meager one-and-a-half months’ worth of inventory. Compare this value to the standard five to six months’ worth of supply widely accepted as a normal, balanced market. Windham’s supply is nowhere near this standard.
Consider if buying or selling a home in the upcoming season is the right decision for you. For additional questions and more information about Windham, NH, real estate, give a call to real estate agent
Anna Kerr. Her expertise in the region and familiarity with the community will surely help you come to a decision that best suits you.
