Buying activity in the Hanover, New Hampshire real estate market remained solid in 2019, with seventy-nine (79) sales of single-family homes, essentially matching the pace of 2018, which saw eighty (80) sales. These sales translated into a total dollar volume of $59,243,250, an all-time high for the town.
Prices of single-family homes have been rising in Hanover over the past several years and in 2019 the average price of sold homes was $749,915, a record high for the market. Of the seventy-nine (79) homes that sold in 2019, 31% sold either at or above the asking price. The average negotiating discount – the % difference between a home’s list price and sale price – was 3.74% in 2019, up slightly compared to 2018 at 2.99%, but generally quite low.
In regard to supply, you can ask any prospective homebuyer looking to purchase in Hanover about available inventory, and they will remind you that there is very little to choose from. At the conclusion of 2019 there were just twenty (20) homes actively listed, down 44% from thirty-six (36) that were listed at the end of 2018. These twenty (20) properties translate into roughly 3 months’ worth of inventory should the pace of buying in 2020 match that of 2019.
The luxury market for properties over $1 million was very strong in 2019. Specifically, there were twelve (12) properties that sold for over $1 million, up from nine (9) that sold in 2018. Inventory of luxury properties has decreased dramatically compared to 2018. There were just two (2) properties listed for over $1 million on Dec. 31, 2019, compared to eleven (11) listed on the same date in 2018.
In regard to the broader real estate market in the region as a whole, the Greater Hanover-Lebanon market area – comprising Hanover, Norwich, Lyme, Lebanon and Hartford – was very solid in 2019. The market saw 338 sales of single-family homes in 2019, compared to 350 in 2018. While the number of transactions in Hanover, Lebanon, Hartford, and Lyme were either flat or saw an increase compared to 2018, Norwich saw a 30% decrease from 46 sales in 2018 to just 32 sales last year. While surprising, this reduction is almost certainly due to the very limited supply of homes in Norwich at the onset of and throughout last year.
Prices continued to rise substantially with Hanover, Hartford, and Lebanon each seeing record highs in regard to average price. In 2019, the average price in Hanover was up 2% from the previous year and just shy of $750,000, Hartford was also up 20% at $277,000, and Lebanon was up 12% at $295,000.
Another sign of continued strength in the Greater Hanover-Lebanon market area was the average negotiating discount, which has been steadily decreasing from a high of 5.85% in 2010 to a record-low of just 2.48% in 2019. To put this differently, 39% of homes that transacted during 2019 sold either at or above a seller’s asking price. This was even more pronounced in Lebanon, where 50% of homes sold at or above the asking price.
Supply of single-family homes was significantly diminished at the conclusion of 2019. Specifically, there were just 84 homes actively listed for sale on December 31 of last year, compared to 148 on the same date in 2018, a 43% reduction. In Norwich, the decrease was even more pronounced as there were just three (3) homes on the market at the end of 2019, a 73% decrease compared to 2018. Norwich, along with every town in the market area, will need a significant replenishment of new supply early this year to satisfy seemingly unending buyer demand.
Charts illustrating the above information can be found below, followed by a complete list of all seventy-nine (79) properties that sold in Hanover in 2019.
A list of all seventy-nine (79) single-family properties that sold/closed in Hanover in 2019 is below.
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