The Seacoast housing market is experiencing a shift towards more balanced conditions, with higher inventory and a less frenzied pace than during the pandemic boom.

Inventory Rebound and Market Shift

Inventory of homes for sale in the Seacoast region has risen significantly in recent months, marking a notable shift in market dynamics. In New Hampshire, active residential listings jumped roughly 20% from late summer 2024 to late summer 2025 [src], reaching over 3,300 homes on the market statewide by September 2025 [src]. The immediate Seacoast area (Rockingham County, NH) mirrored this trend: the number of single-family homes for sale in September was up 23% year-over-year [src] – the highest inventory level seen since 2020 [src]. This influx of listings is easing the extreme shortage that defined the pandemic-era housing frenzy. Months of supply, while still low, has edged upward; Rockingham County had about 2.1 months of supply in September, up from 1.8 months a year prior [src]. (A truly balanced market is around 6 months of supply, for comparison [src].) Overall, buyers are finally seeing more options, signaling a gradual shift toward market balance even if conditions remain mildly in sellers’ favor.

Slower Sales Pace and Increased Buyer Leverage

Homes are generally spending a bit more time on the market now, as buyer competition cools from its peak intensity. In Rockingham County, the median days on market for single-family homes rose from just 16 days last September to 24 days in September 2025 [src] – a 50% increase year-over-year. Similarly, the average time to sell across the broader Seacoast (NH/ME) region in early fall was on the order of 40 days [src], indicating that not every listing is getting snatched up in the first weekend anymore. (By comparison, the statewide average in Maine is about 18 days on market [src] – faster in the high-demand coastal counties and slower in rural areas.) With more choice and a less frantic pace, buyers have gained some negotiating power. The share of listings with price reductions has inched up, and final sale prices are now coming in slightly below asking on average (~98–99% of list price, whereas a year ago many sellers were getting over asking) [src][src]. Bidding wars are less common than during 2020–2022, and house hunters can afford to be a bit more selective on location and condition without rushing into the first property they see [src].

It’s worth noting that sales activity itself has not stalled – in fact, it has picked up despite higher interest rates. Rockingham County saw about 19% more single-family home sales this September than a year ago (277 closings vs. 232 in Sept 2024) [src]. Likewise, York County, Maine (which covers the Southern Maine coast) recorded roughly a 10% increase in home sales during the third quarter of 2025 compared to Q3 2024 [src]. This rebound in transactions suggests that there is still plenty of pent-up demand; buyers who sat out the ultra-competitive pandemic market, or paused when rates spiked, are now re-engaging as they adjust to the “new normal” conditions. In summary, while homes aren’t selling overnight as often, they are selling – and the balance of power is inching back toward equilibrium between buyers and sellers.

Home Prices: High but Stabilizing

Prices in the Seacoast remain historically high, but the rate of appreciation has clearly moderated from the double-digit annual gains seen a couple of years ago. In New Hampshire’s Seacoast (Rockingham County), the median single-family sale price was about $665,000 in September 2025 – roughly a 4–5% increase from $635,000 a year prior [src]. A month earlier, in August, Rockingham’s median house price reached $689,000, which was up a somewhat higher 7.7% year-over-year [src]. Southern Maine’s coastal market shows a similar pattern of moderate growth: for example, York County’s median sale price for the July–Sept quarter was approximately $550,000, up ~4.3% from the same period in 2024 [src]. These coastal NH/ME areas continue to command a premium – for context, the median price statewide in Maine was $402,500 in September [src], and the overall Northeast region’s median is around $500K [src]. The strong draw of the ocean, quality of life, and proximity to job centers (Boston and Portland) keeps home values in the Seacoast elevated relative to many other areas.

That said, there are emerging signs of price leveling. Maine as a whole actually saw its median price tick down by 1.35% in September compared to a year ago [src] – only the second time since 2019 that Maine has posted a year-over-year decline in home price, reflecting a post-frenzy normalization. The condo/townhome segment also appears to have plateaued or even softened slightly in price. For instance, New Hampshire’s statewide condo median price was 0.7% lower in Sept 2025 than a year prior (around $407K vs $410K) [src], whereas single-family medians were still up a few percent. We’re no longer seeing the across-the-board double-digit price surges of the pandemic era; instead, price trends are mixed. High-end properties are still fetching record prices in some cases (the Seacoast set a new September record with 25 homes sold above $1 million, including a $4.2M sale in Rye) [src]. But overall, sellers now must price homes realistically to attract buyers. Overpriced listings are more likely to sit on the market and eventually require price reductions. In short, home values in the Seacoast remain strong and near peak levels, but growth has downshifted to a sustainable pace, and in some sub-markets prices are essentially flat year-on-year.

Land and New Construction Activity

The pace of new construction remains a critical factor for the Seacoast housing outlook. Home builders have been cautious in the face of high construction costs, labor shortages, and more expensive financing for development. As a result, new housing starts in the region have not kept up with the demand surge of recent years, contributing to the persistent inventory shortage. This year, there are signs of slightly increased building activity – for example, building permit data and anecdotal reports indicate modest growth in single-family home construction across New Hampshire in 2025, but not a dramatic spike. Many builders continue to focus on higher-end projects or custom homes (where buyers can absorb the cost), given that affordability challenges make entry-level development tricky.

Land sales on the Seacoast have been a smaller segment of the market, but they’re worth noting. With limited existing homes to choose from, some frustrated buyers have considered purchasing land to build their own home. The inventory of land listings has increased alongside residential listings, giving buyers more opportunities to buy a lot. However, the appetite for land is tempered by the reality of construction costs – after buying the land, building a new house remains significantly pricier than pre-pandemic due to material and labor expenses. Thus, land is moving, but often slowly, and primarily in cases where the location is highly desirable or the buyer is a developer/investor.

On a positive note, some new developments are moving forward which should add to housing supply. A notable example is a major apartment project in Portsmouth: a 360-unit rental housing complex secured financing and began construction in October 2025 [src]. This kind of multi-family development aims to alleviate some pressure in the rental and housing market by providing more options (even though it’s not single-family homes, it could ease competition by giving would-be buyers a rental alternative). Overall, new construction in the Seacoast remains below the level needed to fully close the supply gap, but the combination of gradual regulatory reform (e.g. eased zoning to allow more units) and continued demand is keeping builders interested. We expect to see continued incremental growth in new home construction and land development, especially if interest rates stabilize to make development financing more feasible.

Economic Factors Influencing the Market

Mortgage interest rates have been the dominant economic story impacting real estate in 2023–2025. After the record-low rates of 3% in 2020, rates climbed sharply over the past two years. Throughout 2025, a 30-year fixed mortgage hovered in the 6.5% to 7% range, a level not seen in about 20+ years, which has stretched affordability for buyers [src]. By early fall 2025, rates even briefly eclipsed the 7% mark (many lenders were quoting around 7.2–7.5% in late September). The high borrowing costs slow some would-be buyers, especially first-timers, and also discourage homeowners with ultra-low existing mortgages from selling (the so-called “lock-in effect” trapping housing inventory). However, there was a bit of good news on this front entering autumn: mortgage rates eased back down slightly in October, dipping toward the mid-6% range [src]. This retreat came as financial markets anticipated that the Federal Reserve might finally start cutting benchmark rates in 2025 if inflation cools. The result is that mortgage applications have ticked up compared to last year [src] – indicating that buyers are adjusting their expectations and moving forward despite the rate environment. Many buyers have adopted the mindset of “date the rate, marry the house,” knowing they can refinance later if rates fall, whereas the opportunity to buy a suitable home in the Seacoast (with its limited supply) might not come often. In sum, high interest rates have certainly cooled the market from its peak, but they have not frozen it; motivated buyers and sellers are finding ways to transact, and any consistent drop in rates could unleash a wave of pent-up demand.

Another recent factor was the federal government shutdown that began on October 1, 2025. While short-lived (lasting only until mid-October), the shutdown introduced some uncertainty into the marketplace. In areas with a high concentration of federal employees, real estate activity did pause noticeably – new listings declined and buyer search traffic dipped as those workers faced paycheck delays [src]. Fortunately, the Portsmouth Seacoast area does not have a large federal workforce presence, so the direct impact here was minimal. Local realtors reported only a few minor ripple effects, such as slight delays in processing certain government-backed loans and a general “wait and see” hesitance that resolved once the shutdown ended. Nationally, housing metrics for October showed no major departure from normal seasonal patterns due to the brief shutdown; essentially, it pressed pause on some buyers’ and sellers’ plans rather than derailing the market [src]. By November, any backlog in mortgage underwriting or paperwork was clearing up. The episode was a reminder, however, that broader economic disruptions (like a prolonged shutdown or a recession) could pose risks to the housing market’s momentum.

Beyond rates and federal politics, the general economy of New Hampshire and Maine has remained relatively solid, which underpins the housing market. Unemployment in both states is low (near 2–3%), and wage growth has helped some buyers offset higher mortgage costs. That said, affordability is a growing challenge – high prices and rates mean the typical New Hampshire family now struggles to cover basic living expenses, according to one report [src]. This has policymakers and communities focused on increasing housing supply. Both states have seen new laws and initiatives aimed at encouraging more construction, such as accessory dwelling unit legislation and local zoning reforms, to gradually improve affordability [src][src]. These efforts will take time to bear fruit, but they signal that housing is now a top economic priority. In the meantime, the Seacoast real estate market is navigating the cross-currents of a strong local economy, lingering post-pandemic demand, and the headwinds of high financing costs.

Regional and National Context

The trends observed on the Seacoast largely align with broader regional patterns in the Northeast, while the national picture provides useful context. According to the National Association of Realtors, the Northeast U.S. saw existing home sales rise about 4.3% year-over-year in September 2025, and the regional median price increased 4.1% to roughly $500,300 [src]. Those figures are very much in line with the ~4–5% price upticks and improved sales volumes we’re seeing in places like Rockingham and York counties. The Northeast in general has maintained tighter inventory relative to other parts of the country [src] – which helps explain why our region’s prices are still inching up modestly, whereas some high-supply Sun Belt markets have seen slight price declines. Indeed, a recent analysis noted that the Northeast and Midwest markets often still have more buyers than homes, keeping pricing firm, while many Southern and Western markets now have more supply and longer selling times [src]. The Seacoast, with its enduring desirability and limited land for development, exemplifies the Northeast’s resilience in a cooling national market.

On a national level, the housing market in late 2025 is cooler than the pandemic frenzy but far from a crash. Inventory is gradually improving from rock-bottom levels – active listings nationwide in October were about 15% higher than a year prior [src] – yet supply still remains below historical norms (total U.S. inventory is reportedly ~13% under the typical 2017–2019 level) [src]. Home price appreciation nationally has essentially flattened out; the median list price in the U.S. was up a mere 0.4% year-over-year as of October [src], and some metrics (like Case-Shiller indexes) even show minor price declines in recent months for certain cities. Sales volumes remain subdued compared to pre-pandemic times – roughly 4.0 million existing home sales (annualized) are occurring, which is a low level historically (by contrast, 2019 saw around 5.3 million sales) [src]. High mortgage rates and affordability challenges are the common culprits nationwide.

Despite these headwinds, the Seacoast NH/Southern Maine market has been outperforming the national averages in several respects. Our region’s inventory increase has been larger and faster, which, counterintuitively, has allowed more sales to occur and kept price growth modest but positive. Essentially, we’re seeing a healthier churn: more people are able to move as inventory loosens up, without prices collapsing. This reflects the strong underlying demand in coastal New England – many buyers are still actively looking to relocate here for jobs, lifestyle, or retirement, even if it means paying more for less house than in other parts of the country [src]. Meanwhile, sellers are generally not under distress; most have significant equity, and with the job market solid, we aren’t seeing forced selling or spikes in foreclosures. All this contributes to a relatively resilient market on the Seacoast, even as the national housing scene adjusts to a post-boom, high-rate environment.

Outlook: Heading into the end of 2025 and the start of 2026, experts anticipate that the Seacoast housing market will continue trending toward equilibrium. Seasonally, activity will slow in the winter (as is typical in New England), then likely rebound in the spring. Barring any major economic shock, we expect moderate price changes (flat to single-digit growth) and further gradual inventory gains in the coming year. One Maine realtor observed that getting back to a truly balanced market “is going to be slow and gradual, but… signs show we’re going in that direction” [src]. Buyers can take heart that they face less competition and more negotiating room than in the past few years. Sellers, on the other hand, can still achieve strong prices – especially if they work with their agents to price correctly in this evolving market. The consensus is that we are “moving beyond the pandemic frenzy” into a more stable phase [src]: one where sellers and buyers are on more equal footing, with increasing time on market and pricing concessions becoming more common. In sum, the Seacoast real estate scene remains vibrant, but with a calmer, more sustainable pace. The combination of slightly higher supply, tempered demand, and an improving economic backdrop should make for a healthier housing market – one that continues to attract new residents and investment to the Portsmouth-area and Southern Maine, without the runaway imbalances of the recent past.