Following a January thaw greeting our region with a welcome mid-winter break, the local real estate market is also heating up, which portends another favorable year to come.
Statewide, the rapid increase in average selling prices in New Hampshire moderated somewhat in 2025. According to the New Hampshire Realtors Association, home prices in the Granite State have risen by an average of 8.5% annually over the past decade, but only by 3.9% last year to a median selling price of $535,000.
With mortgage rates slowly descending, more inventory of single-family homes could soon become available regionally, creating opportunities for buyers and sellers alike. Matching predictions offered in previous articles on our local economy, the middle years of the 2020s are living up to expectations as a good time to invest in real estate in the Monadnock region.
The region offers natural beauty, privacy, security, easy access to major shopping and entertainment options and a singular quality of life.
Although there is general interest in real estate locally, there are times when it is difficult to move ahead with transactions. It is useful to recognize times where factors combine to facilitate favorable opportunities. 2026 is shaping up to be just such a time.
The recent rise in stock and commodity values has strengthened balance sheets and created increased liquidity for many purchasers. Employment opportunities and relative job security were attenuated at the end of 2025 by a combination of factors, including corporate restructurings, a prolonged government shutdown and layoffs in some sectors. However, skilled workers with commitment to their careers have been in demand and are experiencing real wage growth in our current economy. Additionally, due to a tightening in both job opportunities and labor supply, increased commitment by employees to employers and employers to employees has been on the rise locally.
Mid-winter statistics in our industry can be misleading due to decreased activity and seasonal variations, such as properties that are “given a rest” and removed from active listings in the winter. However, we are seeing an increase in the number of days properties remain on the market and a greater number of price reductions. The average days on market for sold properties in the Contoocook Valley Board in July reached nearly 40 days, as opposed to 30 days in July of 2023. In winter, properties for sale on average remain on the market for nearly twice that time.
We see a more balanced real estate market in the coming year, with many opportunities for savvy investors and new buyers entering the market, and for those who are looking to relocate, downsize or acquire a larger home for a growing family. New developments offering more affordable attached condominiums, as well as the opening of the Vose Farm residences, have served to bring alternatives online, which allow older apartments and residences to be made available by their relocating owners and tenants. This, in turn, creates investment opportunities for young families that seek to build sweat equity in an older multi-family or single-family residence. It also increases the supply of rental options, which has been severely restricted in recent years. In addition, many people have delayed listing their homes, which otherwise would have already been on the market, due to the trade difference between the low-rate mortgages offered earlier this decade and the current mortgage rates. As these rates descend into the 5% range, more housing options are likely to be available.
Regarding local commercial and investment real estate, many favorable transactions portend a resurgence of downtown improvements in area communities. Coming out of a challenging period during the COVID-era lockdowns, new energy is being applied to much-loved buildings and businesses in our midst. In Peterborough, 28 and 30 Main St. (the Carr Building) is being extensively refurbished for new retail and downtown rental housing use. Across the back parking lot, 14 Grove St. (the Fernald building) is also well on its way through an extensive and exciting renovation. Down the street, the Nonie’s Bakery building has been purchased and is undergoing a thorough renewal. Also underway is work at Twelve Pine, which will add to the attractiveness of Depot Square. Recent transactions bringing new owners to the Roy’s Market complex, the Peterborough Diner and the Toadstool Bookshop have all served to increase the vitality of the village center and continue to make living here a delight.
The area we love is the product of many changes and testimony to the commitment and efforts of many fine citizens and businesspeople in our midst. Through it all, Realtors stand ready to lend a hand and aid in achieving our dreams.
Andy Peterson is a CCIM Broker Associate with Four Seasons Sotheby’s International Realty.