Sales Volume and Prices of Luxury Homes Raising Nationally

Sales Volume and Prices of Luxury Homes Raising Nationally

Many national headlines are talking about the booming high-end vacation home market, in addition to the “urban flight” out of major cities like New York, San Fransico, Miami, Boston and others. As I have been reporting this past summer, we’re seeing similar trends in our second home market here in the Lakes Region with a sales volume from Massachusettes, Connecticut, and parts of New Jersey & New York increasing.

I thought I would take a look outside of our region and see what’s happening out west at some of the ski areas, some of the ocean towns in Florida, and the Hamptons in New York. Those markets are experiencing what we’ve been going through in the Lakes Region, but to a much higher degree and at much loftier price ranges. In Telluride, Colorado, the dollar volume of home sales increased 54% through the month of August compared to the year earlier, and the ski town had $125 million in sales in August alone. In Aspen, Colorado, it was reported that since March of 2020, 46 homes were sold for over $10 million each and 24 more homes are presently under contract. Can you imagine that kind of activity in the high-end market? That’s over a 7-month period of time. David Viehman, a Broker in Jackson Hole, Wyoming, reported sales are up 55% over a year ago. He indicated there have been 21 sales over $10 million compared with five in the previous year, which represented a 320% increase!

Just like what we see here in the Lakes Region, out west the Brokers are seeing the same activity… only even more intensified. People are fleeing the cities, searching for homes with more of a connection to the outdoors and recreational pursuits. This is definitely driving up much of the demand. The COVID-19 pandemic has played a role in spiking activity in these western ski towns, accelerating many families’ decisions to purchase a pricey escape home. My friend John Garnsey called me from Vail, Colorado, the other day and told me about a record duplex sale that just closed at $57.2 million! One of the duplex units was 8,500 sqft., and the other side was 6,500 sqft. It was an all-cash, record sale for the affluent ski town. John told me another home sold the following week for $25 million; and at Beaver Creek Resort (which is just down the road from Vail), there were a large number of multimillion-dollar transactions this past season.

If you leave the western mountain towns and start looking along the Florida coastline, you’ll see more remarkable activity on the high-end market. It was reported that the average home price in Palm Beach, Florida, was more than $7 million during the third quarter, according to a report by Douglas Elliman and Miller Samuel. One recent sale was a $28 million sale of a mansion that was torn down to build a new showplace. Another oceanfront compound sold for $19 million and one huge estate went for $51 million. It appears that Flordia is drawing families that are fleeing the big cities for oceanfront tropical homes. Many of them are looking toward retirement; however, the pandemic has also lead to a wave of younger families moving to Flordia to escape New York and other metropolitan areas. It was reported that in Miami, luxury home prices surged 42% in a quarter, with the average sales price hitting $2.8 million. On Star Island, a small spike of sand connected to South Beach via a causeway, a record sale occurred this past season at $49.5 million, and there were a number of other high-end sales ranging from $17 million to $32 million. That’s a lot of activity for the 86 acre island. Low taxes and warmer weather are also big draws pulling clients from the northeast. If you are interested in the California coastline, you could purchase Pierce Brosnan’s “Malibu Dream Home,” which is presently listed for sale for a cool $100 million. That will get you a 12,500 sqft. home with 120′ of ocean frontage. Playing James Bond for the 4th time and having one of the leads in ‘Mama Mia’ certainly put some coins in his pocket.

The Jersey shoreline is also seeing huge increases in high-end homes, and the Hamptons in New York is exploding. According to Robert Frank, real estate prices in the Hamptons jumped 46% in the third quarter as sales soared by over 50%. This is the biggest jump they have experienced in seven years, where many wealthy people fled New York City to the Hamptons’ beaches. The average sales price was just over $2 million and the median sales price of $1.2 million is now higher than Manhatten’s median sales price of $1.1 million. One luxury 8,000 sqft. home on three acres in East Hampton just sold for $24 million. However, according to Robert Frank, they’re now seeing a shortage of available luxury homes with bidding wars resulting because of the urban flight out of New York City. The National Association of Realtors just released that there is only a 2.7 month supply of inventory nationally as of the end of September.

The high-end markets out west, in Florida, and in the Hamptons are at record levels; however, you have to take into account that they appeal to an international market and a broader geographic than the Lakes Region. Here in the Lakes Region, we are predominately New England’s playground in terms of our demographics. However, we do get a good selection of clientele from other northeastern states as well as Florida and the Carolinas.

Let’s look at the numbers: For the high-end market in the entire state of New Hampshire, there were only 9 homes that sold for over $4 million in 2020 year to date. Four of the properties were located

Lake Winnipesaukee, NH

on Lake Winnipesaukee; three of them were on Lake Sunapee, one was in Portsmouth, and the last one was in Rye, New Hampshire. The highest residential selling price in 2020 to date is $7,505,000 on Lake Sunapee. The second highest was on Lake Winnipesaukee in Moultonborough, at $5,250,000. In 2019 the highest sale in New Hampshire was on Squam Lake at $8,300,000. However, if you look at just Lake Winnipesaukee, there have been approximately 85 waterfront sales priced over $1 million year to date. That’s a lot of sales over $1 million and there are obviously a number of sales that have occurred under the $1 million price point. There is a good insight that comes out of this little exercise: It is a lot more reasonable to purchase high-end properties in New Hampshire and the Lakes Region than in the other markets outlined above. Most importantly, for the average consumer looking to purchase property in New Hampshire, a recent study came out comparing all 50 states across ten categories and New Hampshire has been named the 5th best state for homeowners! Yes, the Lakes Region is a very popular place for New Englanders looking to escape, and the fact that we came in 5th comparing so many metrics says it’s a very solid state in which to invest.

Frank Roche, President of Roche Realty Group, Inc. with offices in Meredith and Laconia, NH

This article was written by Frank Roche. Frank is president of Roche Realty Group with offices in Meredith and Laconia, NH, and can be reached at (603) 279-7046. Data was compiled by a NEREN map search on 10/22/2020 at 4:30 pm EST and is subject to change. Please feel free to visit www.rocherealty.com to learn more about the Lakes Region and its real estate market.

Share on facebook
Share on twitter
Share on google
Share on reddit
Share on pinterest
The "Village Store" in Gilford, NH

The “Village Store” in Gilford Has New Owners

Gilford— The “Village Store” in scenic Gilford Village, a Lakes Region landmark since 1836, was …

Read More →
Lakes Region NH - aerial view of Lake Winnipesaukee NH

Lakes Region Waterfront Sales Comparisons

I thought I would look at the real estate activity on the Lakes Region’s four …

Read More →
Island Living on Lake Winnipesaukee in NH - aerial view of Welch Island, Lake Winnipesaukee

Island Living on Lake Winnipesaukee

The thunder of motorcycles has arrived in the Lakes Region. After a long year of …

Read More →
summer fun in nh - swimming in the river

Summertime Adventures Around the Lakes Region

Memorial Day weekend has arrived, and all of us are excited to kick off the …

Read More →
Are we in a real estate bubble?

Are We in A Real Estate Bubble?

Back in April, the red hot search on Google™ was “when is the housing market …

Read More →

Roche Realty Group Sells Artie’s Subs & Pizza

Moultonborough, NH – Brian and Kara Dillard of Barrington, New Hampshire, have recently purchased Artie’s …

Read More →
Laconia, NH - City on the Lakes

Laconia— City on the Lakes

The 17,000 resident, “City on the Lakes,” is nestled on the shores of three of …

Read More →
Alton, New Hampshire on Lake Winnipesaukee

Alton’s Treasures — Natural Resources

Alton, New Hampshire is a scenic community with wonderful natural resources. The town envelopes the …

Read More →
Moultonborough, New Hampshire

Moultonborough, NH — Low Taxes Attract!

Moultonborough, New Hampshire, is a scenic and idyllic community on the northern shores of Lake …

Read More →
Gilford, New Hampshire on Lake Winnipesaukee

Gilford Recognized For Its Quality of Life

Gilford, New Hampshire, has always been a popular destination and a great community to live …

Read More →
Meredith Village on Lake Winnipesaukee, New Hampshire

Meredith, NH—One of the Top 10 Best Small Towns on the East Coast

It’s always good to see our local towns highlighted in national publications, and recently Meredith …

Read More →

Economic Concerns for Real Estate

For the first time in decades, fiscal and monetary policy will likely remain easy during …

Read More →
The Ledges on Newfound Lake

The Ledges at Newfound Lake

     It is always with mixed emotions how we view the development of our natural areas. …

Read More →
Lakeview Golf Club in Belmont on 172 Acres Sold by Roche Realty Group

Lakeview Golf Club in Belmont on 172 Acres Sold

Belmont, NH- The beautiful 9-hole Lakeview Golf Club located at 89 Ladd Hill Road in …

Read More →
Nutmeg Inn in Meredith NH Sold

Nutmeg Inn in Meredith Sold

Meredith, NH- The historic country Nutmeg Inn located at 80 Pease Road in Meredith has …

Read More →
Housing Inventory Lacking - Lake Winnisquam, NH

New Hampshire’s Four Largest Lakes Lack Inventory

As we’re nearing the 1st quarter of sales activity in the Lakes Region, I thought …

Read More →
Lakes Region Real Estate Market - View of NH Lakes

Real Estate Tidbits in The Lakes Region

Here’s a quick update on the market and a few things I’ve observed that will …

Read More →

Roche Realty Group sells “The Anchorage at the Lake” Resort on Lake Winnisquam

Tilton, N.H. – “The Anchorage at the Lake” Resort located on Lake Winnisqaum and Route …

Read More →
New Construction in the Lakes Region

New Construction and Re-Sale Housing Dilemmas

I’ve seen a considerable amount of new construction and home remodeling taking place in my …

Read More →
Lakes Region NH

Lakes Region Market Competition is Fierce

We are now entering March, the unofficial beginning of our Spring Selling Season. We have …

Read More →
Home inspection report

Reasons Why You Should Not Waive a Home Inspection

We have a very competitive real estate market here in the Lakes Region due to …

Read More →
Photo of homes in New Hampshire's Lakes Region

NH’s Housing Inventory Needs One Thing — LISTINGS

This week I’d like to provide you with a summary of what New Hampshire’s Real …

Read More →
Wicwas Lodge and Lakeland School Property

Roche Realty Group sells the historic Wicwas Lodge / Lakeland School Property

Roche Realty Group, with offices in Meredith and Laconia, recently sold the Lakeland School property …

Read More →
Night picture of Laconia NH

Lakes Region—One of the Countries Hottest Neighborhoods in 2021

Imagine it’s Super Bowl weekend and there’s not a chicken wing or a pizza to …

Read More →
Hiking in New Hampshire

New Hampshire, Vermont, and Maine Peak Attractions

In my younger years in school, I always loved geography as a subject. Living in …

Read More →
Moving day

How to hand your home over to its new owner

Remember your first home? Whether it was a freshly painted rental or your first investment …

Read More →

Roche Realty Group Reports Sales of $146.5 Million for 2020

Frank Roche, President of Roche Realty Group, Inc with offices in Meredith and Laconia, has …

Read More →
Lakes Region NH vs San Francisco, CA

“Lifestyle Finder” For Your Move to or From The Lakes Region

Some studies place moving to a new location as one of the top ten most …

Read More →
Lake Winnipesaukee, NH

Winnipesaukee, Newfound and Squam Lake Accolades

Winnipesaukee, Newfound and Squam Lake Accolades It’s always fun to read articles where Lake Winnipesaukee …

Read More →
Kevin Shaw - Roche Realty Group

Kevin Shaw of Roche Realty Group is Top Producer for 2020

LACONIA — Frank Roche, president of Roche Realty Group with offices in Meredith and Laconia, …

Read More →
Center Harbor, New Hampshire

Jaw Breaking Price Increase in 2020 vs. 2019

Last week I pulled up comparisons on year to date sales of waterfront homes on …

Read More →
NH Lake Sales Activity - picture of lake with mountains and homes

Lakes Region Waterfront Sales 2020 vs. 2019

We’re getting near the end of the year, and I thought I would pull up …

Read More →
condominiums on lake winnipesaukee nh

No Better Time to Sell Your Home

We’re heading into the holidays, and all the local Realtors® are busy. They are out …

Read More →
Real Estate News Headlines - Lakes Region NH

Real Estate and Market News

There’s a lot going on out there in the marketplace. So much in the news …

Read More →
Picture of NH condominium home with pool

Affordable Housing is Always in Demand

There’s a lot of talk lately about the lack of affordable housing in the Lakes …

Read More →
Kitchen renovation

Small Improvements Make a Big Difference

During this past spring and summer, a large number of homeowners throughout the Lakes Region …

Read More →
Sales Volume and Prices of Luxury Homes Raising Nationally

Sales Volume and Prices of Luxury Homes Raising Nationally

Many national headlines are talking about the booming high-end vacation home market, in addition to …

Read More →
Support Small Businesses

Are we seeing a retail apocalypse?

During this past summer, I have been talking mainly about the exploding residential real estate …

Read More →
House and cash on a balance scale

Tips for Buyers in a “Seller’s Market”

We are currently experiencing a strong seller’s market here in the Lakes Region. 2020 has …

Read More →
Randy Miller Joins Roche Realty Group

Randy Miller Joins Roche Realty Group

Frank Roche, President of Roche Realty Group, Inc. with offices in Meredith and Laconia, is …

Read More →
New Construction in the Lakes Region

Lakes Region Construction Activity Update

It has been a wild summer out here in the Real Estate industry!  I thought …

Read More →
The Opera House in Laconia NH

The Vision behind the “Opera House” Renovation: Revitalization of the Lakeport Area

There is a lot of excitement brewing in the Lakeport area! Previously shuttered for decades, …

Read More →

Roche Realty Group Sells Trustworthy Hardware Building

Laconia – Tom Drouin of Roche Realty Group represented both the Seller and the Buyer of …

Read More →
Highland Ridge

Strong Demand at Highland Ridge With 20 Home Sales.

Sales of newly constructed homes throughout the Lakes Region have been very brisk the past …

Read More →
Hikers overlooking the lake in New Hampshire, voted "Best State to Live in America" in 2020.

New Hampshire Leads the Pack Again!

New Hampshire Leads the Pack Again! A recent article on moneywise by Esther Trattner showed …

Read More →

Hot Markets Around Lake Tahoe and Lake Winnipesaukee

I was reading a recent article on CNBC by Robert Frank the other day where …

Read More →
NH River Kayaking

Rolling down the river

A month and a half ago, we had a fun kayaking trip down the Merrimac …

Read More →

Historic Landmark is a Focal Point of Windward Harbor on Lake Winnipesaukee

Visitors to Lake Winnipesaukee have long recognized the special qualities of Windward Harbor. Its deep …

Read More →
South Down Shores on Lake Winnipesaukee, NH

How Did South Down Shores and Long Bay on Lake Winnipesaukee Get Started?

When construction started in 1981, Laconia’s South Down Farm offered an ideal picturesque setting for …

Read More →
Balmoral on Lake Winnipesaukee

Four Season Living at Balmoral on Lake Winnipesaukee

There are so many water-access communities in the Lakes Region that provide great memories. Let’s …

Read More →

Leave a Comment