As real estate agents in Lebanon, we receive a lot of questions from potential home buyers and sellers about the housing market. With so much information available and constantly changing conditions, navigating the market and making informed decisions can be overwhelming. In this blog post, we’ll answer 10 of the most common questions we receive and provide some insight into the current state of the housing market in Lebanon.
1. Is now a good time to buy a home in Lebanon?
The answer to this question depends on a variety of factors, including your financial situation, personal goals, and the current state of the market. However, in general, now is a good time to buy a home in Lebanon.
Market Demand and Price Trends
The Upper Valley, including Lebanon and other towns like Hanover, Lebanon, White River Junction, and Norwich, continues to be a desirable area to live due to its natural beauty, proximity to Dartmouth College, and high quality of life. Home prices in this region have been gradually increasing, but not at the rapid pace seen in other parts of the country. This means the area still offers relative affordability for buyers looking for a long-term investment. However, demand is steady, and buyers should act sooner rather than later if they want to take advantage of current prices before they rise further.
Mortgage Rates
In 2024, mortgage rates remain elevated compared to the last decade, which continues to impact buying power across the U.S. However, this higher rate environment can also create opportunities. As some buyers may be priced out of the market, competition could lessen. For those who are financially prepared, purchasing a home in the Upper Valley now could provide the advantage of less competition and the potential to refinance when rates eventually drop.
It’s important to remember that interest rates are unpredictable, as we’ve seen in recent years. Mortgage rates are projected to decrease slightly in 2024, though they are unlikely to return to the historically low levels seen during the pandemic. According to multiple sources, the average 30-year fixed mortgage rate is expected to remain above 6% for most of 2024, with some estimates predicting it could drop to around 6.2% by the end of the year. The National Association of Realtors, Fannie Mae, and the Mortgage Bankers Association forecast that rates could continue to decline into 2025, potentially dipping below 6%
Don’t wait on the rate—focus on finding the right home, knowing you may have the chance to refinance in the future if conditions improve.
Inventory and Supply Challenges
Like many regions, the Upper Valley has been dealing with low housing inventory, particularly in highly desirable areas. Fewer homes available means that buyers need to be prepared to act quickly when they find a suitable property. Still, the market may provide some relief if you’re flexible on location or property type. Towns slightly outside the major hubs like Lebanon and Hanover might have more inventory and less competition.
Local Economic Conditions
The local economy in the Upper Valley is influenced by sever al large institutions like Dartmouth College, Hypertherm, and Dartmouth-Hitchcock Medical Center, which provide stability. These anchor employers make the area resilient even during broader economic downturns. Additionally, the region is becoming more attractive for remote workers seeking a better quality of life, which can further drive demand.
Long-Term Investment Potential
The Upper Valley’s natural charm and steady growth make it a good candidate for long-term appreciation. Even with higher upfront costs, owning property here could be a solid investment, especially if you plan to hold onto it for several years. The region has shown consistent appreciation over time due to its desirability as both a place to live and a destination for second-home buyers.
2. How long does it take to buy a home in Lebanon?
The timeline for buying a home in Lebanon can vary depending on a number of factors, including the type of home you’re looking for, your budget, and the current state of the market.
1. Home Search: 1-3 Months
The time it takes to find the right home depends on your needs, the market conditions, and available inventory. In the Upper Valley, where housing inventory can be low and competition for desirable properties is high, finding a home could take longer. If you’re flexible on location or property features, the process may move more quickly. On average, buyers spend 1 to 3 months searching for a home.
2. Offer and Negotiation: 1-2 Weeks
Once you find a home you’re interested in, submitting an offer and negotiating terms usually takes 1-2 weeks. In a competitive market, the timeline can be shorter, especially if there are multiple offers on the table. It’s important to work with a real estate agent who knows the Upper Valley market and can help you make a strong, competitive offer.
3. Mortgage Pre-Approval: 1-2 Weeks
Getting pre-approved for a mortgage is a crucial step that can take about 1 to 2 weeks. If you have all your documents ready (tax returns, pay stubs, etc.), this can speed up the process. Pre-approval also strengthens your offer, showing sellers that you are a serious buyer.
4. Inspections and Appraisals: 2-3 Weeks
Once your offer is accepted, the home inspection and appraisal process begins. These are typically completed within 2-3 weeks. Any issues that arise during the inspection might lead to further negotiations, potentially extending the timeline.
5. Loan Processing and Underwriting: 3-6 Weeks
After the appraisal, your lender will process your mortgage application, which includes underwriting to verify your financial information. This step can take 3 to 6 weeks, depending on the complexity of your finances and how quickly you provide any requested documentation.
6. Closing: 1-2 Weeks
Once your loan is approved, you’ll move on to the closing process, which typically takes 1 to 2 weeks. During this time, you’ll review and sign the final documents, make your down payment, and pay closing costs. On closing day, the title transfers from the seller to you, and you’ll receive the keys to your new home.
Total Time: 2-4 Months
From the start of your home search to closing, the process usually takes between 2 to 4 months. However, this can vary based on market conditions, how quickly homes are moving, and whether any issues arise during the inspection or loan approval process.
Key Factors That Can Affect the Timeline:
- Market Conditions: In a seller’s market, homes move faster, so the process may take less time, but it could be harder to find a home.
- Financing Issues: Delays in mortgage approval or underwriting can extend the timeline.
- Inspections: If significant issues are found during the home inspection, negotiations and repairs could add weeks to the process.
3. How much should I expect to pay for a home in Lebanon?
The cost of a home in Lebanon can vary depending on a number of factors, including the location, size, and condition of the property. Each city, area, and neighbored can be different It’s important to work with a real estate agent who can help you find a home that meets your needs and budget.
The average home price in the Upper Valley of New Hampshire and Vermont varies depending on the specific town, but when I run the market monitor data from the MLS for October 2024 the avg. home price falls between $415,000 and $474,000. Areas such as Hanover, NH, and Norwich, VT, tend to have higher prices due to proximity to Dartmouth College and other amenities, while more rural locations may have lower average prices. Market trends show steady demand, contributing to ongoing price appreciation in this region.
For more up-to-date data, you can reach out 603-443-3149 Brendan@susancolerealty.com
4. What is the state of the housing market in Lebanon?
The housing market in Lebanon is currently very competitive, with a high demand for homes and limited inventory. Homes that are well-priced and in good condition are moving quickly, often with multiple offers. In contrast, homes that are overpriced for their perceived value or condition are sitting on the market much longer. The average time on the market is about 50 days, with well-priced homes going under contract within 7-10 days. However, some properties linger for 120+ days, often requiring price reductions due to their condition or pricing. Additionally, the time of year plays a significant role in buyer and seller activity, so reach out to learn how current market trends are affecting home sales.
5. Should I sell my current home before buying a new one in Lebanon?
The decision to sell your current home before buying a new one in Lebanon depends on several factors, including your financial situation and personal goals. If you need the equity from your current home to purchase a new one, selling first may be necessary. However, if you can secure financing without selling, you could buy a new home before selling. Having no contingency on selling your current home makes your offer much stronger. While it’s possible to get a home under contract with a sale contingency, sellers often view it as a weaker offer.
6. How do I know if I’m getting a good deal on a home in Lebanon?
To ensure that you’re getting a good deal on a home in Lebanon, it’s important to work with a reputable real estate agent who has experience in the local market. Your agent can provide you with comparable sales data to help you determine the fair market value of the property and negotiate on your behalf to ensure that you’re getting the best possible deal.
Comparative Market Analysis (CMA)
- Check Comparable Sales (Comps): Look at recently sold properties in the same neighborhood with similar square footage, features, and conditions. This will give you a good baseline for the local market.
- Market Trends: Determine if the market is in a buyer’s or seller’s phase. In a buyer’s market, homes might be priced more competitively, while in a seller’s market, homes may be priced higher due to demand.
Work with a Local Realtor
- Expertise in the Area: A local realtor can provide invaluable insight into what’s happening in the Lebanon real estate market. They can help you find homes that are priced well and guide you through negotiations.
- Negotiation Power: An experienced realtor can help you determine if there’s room for negotiation and ensure you get the best possible price.
7. What should I look for when viewing homes in Lebanon?
When viewing homes in Lebanon, it’s important to look beyond the cosmetic details and focus on the overall condition of the property. Look for signs of wear and tear, such as cracks in the walls or foundation, water damage, and outdated electrical or plumbing systems. You should also consider the location of the property, including the proximity to schools, shopping, and other amenities. When viewing homes in the Upper Valley of New Hampshire and Vermont, there are several factors to consider, given the region’s unique characteristics. Here’s what you should focus on:
Location and Proximity
- Commute and Accessibility: How far is the home from major roads, highways (e.g., I-89, I-91), and essential services (schools, hospitals, grocery stores)?
- Local Amenities: Check for nearby recreational spots like hiking trails, lakes, and ski resorts, which are popular in the area.
- Community Feel: Consider whether you prefer a rural, suburban, or small-town atmosphere. The Upper Valley offers a mix of both, from vibrant towns like Hanover and Lebanon to more quiet, rural settings.
Weather-Resilience and Heating
- Insulation and Heating: Winters can be long and harsh in the Upper Valley, so look for homes with efficient heating systems (e.g., oil, propane, wood stoves, or newer heat pump systems). Ensure the home is well-insulated.
- Roof and Exterior: Check the roof’s age and condition, as snow loads can be heavy. Metal roofs are popular because they shed snow easily.
- Energy Efficiency: Homes that have had energy audits and upgrades (e.g., double-pane windows, insulated basements) will be more comfortable and cost-effective in winter.
Water and Septic Systems
- Water Source: Is the home on public water or a private well? If it’s a well, inquire about water quality, the depth of the well, and water flow rate.
- Septic Systems: Many rural properties will have septic systems, so ask about the system’s age, when it was last inspected, and whether it’s properly sized for your needs.
Land and Property Size
- Lot Size and Use: Consider how much land you want and how you’ll use it. Whether you want a large yard for privacy or a smaller plot for easier maintenance, take the terrain into account.
- Outdoor Access and Features: Properties that back up to forests or have access to rivers or lakes can be desirable, but check if there are any conservation easements or restrictions.
Potential for Expansion
- Renovation and Expansion: Many older homes in the Upper Valley are charming but may need updates. Check zoning laws and building restrictions in case you want to renovate or add on.
- Outbuildings and Garage Space: Consider whether you need additional storage for vehicles, outdoor equipment, or hobbies (e.g., woodworking).
Condition of the Home
- Foundation and Basement: Given the region’s freeze-thaw cycles, examine the foundation for cracks or signs of water intrusion. Look for dry basements with appropriate drainage systems.
- Age and Maintenance: Older homes might have historic charm, but they may also come with maintenance issues. Evaluate the condition of plumbing, electrical systems, and the roof.
Environmental Factors
- Wildlife and Nature: Consider wildlife that may come with living in rural areas, such as deer, bears, or beavers. Think about how this might impact gardens or outdoor spaces.
- Flood Zones: Some areas near the Connecticut River or local streams could be in flood zones. Check flood risk maps and inquire about flood insurance.
8. How much should I offer on a home in Lebanon?
The amount you should offer on a home in Lebanon depends on a variety of factors, including the fair market value of the property, the current state of the market, and your budget. Your real estate agent can help you determine a fair offer price based on comparable sales data and negotiate on your behalf to ensure that you’re getting the best possible deal.
9. How do I know if I’m getting a good mortgage rate in Lebanon?
To ensure that you’re getting a good mortgage rate in Lebanon, it’s important to shop around and compare rates from multiple lenders. You should also consider working with a reputable mortgage broker who can help you find the best possible rate and terms for your situation. We have connections to several local vendors that we trust highly, and have done multiple deals with. You’re happy to help get you connected with a local lender.
10. What should I do if my offer is rejected on a home in Lebanon?
If your offer is rejected on a home in Lebanon, first understand Why the Offer Was Rejected by Asking for Feedback: Try to understand why your offer was declined. Was it the price, terms, contingencies, or something else? Understanding the seller’s reasoning can help inform your next move. Next Be ready to adjust Based on Feedback: Once you’ve received feedback, be prepared to make changes to your offer. This could mean increasing the price, modifying contingencies, or offering a more flexible closing timeline. A willingness to adjust your offer can make it more competitive and increase your chances of success whether on the current property or the next home you find that meets your needs.
The housing market in Lebanon can be complex and overwhelming, but working with a real estate agent who has experience and expertise in the local market can help you navigate the process and make informed decisions. By asking the right questions and seeking out professional guidance, you can find a home that meets your needs and budget and achieve your homeownership goals. Reach out to our team today for help buying a house in Lebanon! (603) 443-3149