New Hampshire saw the ninth-highest increase in the price of a single-family home in the past year, according to a study by real estate data analysis firm CoreLogic.
In its most recent US Home Price Insights report, CoreLogic said house prices in New Hampshire rose 18.9% between May 2020 and May 2021. But while the increase is significant, it is only the New England’s third-highest rate, behind Vermont’s 19.3 percent and increases of 19.2 percent.
The states with the highest year-over-year increases were Idaho (30.3%), Arizona (23.4%) and Utah (20.4%). Nationally, the average increase in home prices was 15.4%.
Also in its report, CoreLogic issued a warning about what it says are the markets most at risk for falling home prices as a result of these sharp increases. He looked at metropolitan areas “where affordability constraints are prevalent and continue to persist as prices rise.” Among the metropolitan areas at risk, according to CoreLogic are Springfield and Worcester in Massachusetts.
Meanwhile, the National Association of Home Builders reported that new home sales fell to the lowest pace of the year in May, while prices jumped 18% year-on-year. The organization said sales of single-family homes fell 5.9% in May to a seasonally adjusted annual rate of 769,000.
“New home prices have increased over the past year due to rising material costs and delivery delays,” said Chuck Fowke, president of the NAHN and builder of custom homes in Tampa. He highlighted the difficulties in the supply chain that continue to persist.
“Although lumber costs have declined in recent weeks, they are still over 210% higher than a year ago. And the prices (of oriented strand board) are up 380% from last year.
In fact, said NAHB chief economist Robert Dietz, as higher prices sidelined some buyers, data from the NAHB survey “indicates that about 20% of builders have limited their sales activities in recent months in order to manage supply chains for materials and labor. availability.”
This article is shared by a partner of The Granite State News Collaborative. For more information visit collaborationnh.org.