Lebanon is a fabulous place to live. It is a picturesque, charming town in the Upper Valley of New Hampshire with a neighborly environment and strong community ties.
Lebanon also has stunning views courtesy of its location along the Connecticut River; its backdrop against the Appalachian Mountains is simply stunning.
The Upper Valley area is gaining traction thanks to its growing economy, especially in the healthcare industry. In consequence, the Lebanon real estate market is booming. The real estate experts of
Black House Real Estate have compiled a list of all the trends and forecasts for 2023, so you have clear information about the area before home searching.
Lebanon Housing Market Forecast 2023
Home Values Increasing
Statewide, the median home sales price in New Hampshire is poised to increase this summer after
holding steady for spring 2023.
Some experts predict a highly competitive housing market in New Hampshire because out-of-state buyers are flocking here. Many people are moving to New Hampshire, especially from Massachusetts, to take advantage of the state’s lower cost of living. As of March 2023, Lebanon saw an increase in median list price, with figures trending upward
toward $500,000.
Limited Yet Ample Inventory
Lebanon, N.H., is a niche market where inventory is currently capped at about one month. As of March 2023, the volume of closed sales had increased year-over-year from six to 16. You can expect to find several spacious single-family homes listed for
less than $1 million. And as the market heats up, Lebanon homes spend significantly less time on the market (just
17 days as of March 2023). Going forward, it will be crucial to make a strong offer to secure your dream home in Lebanon.
Rising Interest Rates
While Forbes notes that interest rates have been decreasing steadily during April of 2023, unfortunately, the
average mortgage rate of 6.96% is double what it was in early 2022. It is advisable to take cues from the Fed regarding how interest rates will behave. Despite slight downward trends, most experts predict that interest rates will increase to a 20-year high.
Positive Net Migration
New Hampshire has positive net migration. The population has surged in recent years. According to the New Hampshire Business Review, between 2020 and 2025, there will be a
net migration increase of about 51,600. This mainly includes a younger generation that prefers the lower cost of living in New Hampshire and can still reasonably commute to Boston.
Grafton County Housing Market Trends
Grafton County has steadily increased in demand over the past decade, despite an abrupt shortage of interested buyers during the pandemic. Expect conditions to improve and normalize the further we get from 2020.
How the Lebanon Real Estate Market Recovered From 2020
During the pandemic, the real estate market froze in New Hampshire, with little movement throughout spring 2020. Lebanon real estate experienced a severe housing freeze, with few buyers willing to spend money in the risky economy.
However, market conditions have slowly returned to their pre-pandemic norms. New Hampshire has seen a drastic increase in demand, creating a busy seller’s market. Lebanon has garnered attention along with other hot spots in the state (like Nashua, Manchester, Portsmouth, and Pelham). Local buyers are encountering steep listing prices and competitive negotiations.
Lebanon Foreclosure Statistics 2023
New Hampshire has a very
low foreclosure rate compared to other states, ranking 39th in the country with an average rate of just .13%. New Hampshire’s foreclosure procedure is non-judicial, so lenders can foreclose property without receiving a court order first. The process typically lasts two to three months, and there is no redemption period. Foreclosure statistics have been rising slowly towards the end of 2022; however, they are still lower than in 2019. Numbers have stayed down as the proportion of qualified buyers has increased.
Lebanon Median Home Prices 2023
As of March 2023, the median sales price for single-family homes for sale in Lebanon NH was
$481,000. Inflation and increased demand for housing have steadily driven the median price over the past few years. The list prices you encounter will vary based on the kind of home you want. Besides traditional single-family sales, you can also find opportunities for investment properties and long-term rentals in Lebanon.
Lebanon Neighborhoods
Lebanon homes are worthwhile investments that increase in value over time. Investing in the real estate market is a profitable way to have another source of income. Before investing, however, you should know some information about Lebanon's most popular places to live. From there, you can select the neighborhoods you deem to have the most promise.
West Lebanon
West Lebanon has excellent retail stores and small businesses. This area is the source of the Lebanon region’s economic activity and thus is a popular location for business owners and other successful individuals.
Downtown Lebanon
The most well-known and central area of Lebanon, downtown, is a thriving neighborhood and one of the most expensive. It is full of charming shops and restaurants for guests to enjoy and is usually very busy compared to other parts of Lebanon.
Sachem Village
Sachem Village offers residents more affordable housing options than other neighborhoods in Lebanon. It is a community-driven residential haven with few shops but lots of family life.
Heater Road area
Another booming economic area in Lebanon is Heater Road. It is highly industrialized and is a center for manufacturing activities. You can find several single-family homes on the market at any given time.
Hanover Street Area
The Hanover Street neighborhood in Lebanon is tranquil and quaint. It is your typical suburban community and is very popular because of its exquisite residential properties.
Mascoma Lake
Mascoma Lake is an affluent part of Lebanon. Here, residents enjoy waterfront homes with breathtaking views and access to lakeside living, including boating and fishing.
Learn more about the booming real estate market in Lebanon
*Header photo courtesy of Black House Real Estate
