Exploring Cash Sales Dynamics in Lakes Region Real Estate

Exploring Cash Sales Dynamics in Lakes Region Real Estate

I was at a sales meeting at Roche Realty Group the other day, and we were all talking about the number of cash sales we’ve seen in the Lakes Region. It’s an interesting topic, so I thought I’d put some research into it. The results are pretty eye-opening. I pulled all of the towns surrounding Lake Winnipesaukee, including Moultonborough, Gilford, Laconia, Meredith, Center Harbor, Tuftonboro, Wolfeboro, and Alton. I then took all of the residential properties that sold, including single-family homes, condominiums, and mobile homes, and I broke out all of the cash sales. The research results comparing the last three years are as follows.

  • In 2023, there were 1,009 residential sales in the above towns, of which 480 of them were cash sales representing 47.6% of all residential sales.
  • In 2022, there were 1,207 residential sales in the above towns, of which 556 of them were cash sales, representing 46% of all residential sales.
  • In 2021, there were 1,407 residential sales in the above towns, of which 661 of them were cash sales representing 47% of all residential sales.

You can see from the above that the number of residential sales dropped considerably from 2021 to 2023, a 28.3% difference, due primarily to the severe lack of residential inventory. The percentage of cash sales in these towns is what’s eye opening. To think that 47.6% of all residential sales in these towns were all cash closings is remarkable.

It’s hard to believe there’s that much cash circulating in our local economy, which has a very positive impact. It also shows the demand for our Lakes region from outside markets that infuse so much capital into the region. For example, the largest sale in the State of New Hampshire during 2023 was on Lake Winnipesaukee in our town of Meredith on Spindle Point at $14 million. That was an all-cash sale.

The number of cash sales, however, has created a very difficult market for those individuals who need financing to complete a transaction. In the last several years, we have seen many young couples trying to buy their first home and others who needed financing who lost out on their offers because the Sellers were intrigued by an all-cash offer. It’s a sad situation where affordability has become such a problem. Prices have run up, interest rates have increased, and there’s an abundance of cash entering the marketplace.

New Hampshire home prices have never been higher than they were in 2023, yet at the same time, there were fewer statewide home sales than any year since 2011. To give you an idea of how prices escalated, the median sales price in New Hampshire this year was $470,000. This represents a 57% increase since 2019. At the end of December, there were 1,382 residential homes for sale in New Hampshire, that’s an 11% drop from December of 2022. As a result, the New Hampshire Affordability Index sits at 66. The New Hampshire Association of Realtors® reports that the 66% affordability index has seen a 47% decline from December 2020, when the index was 124.

Another recent statistic that really surprised me was the share of Americans who are mortgage-free. It’s at an all-time high where almost 40% of US homeowners own their homes outright as of 2022, according to Bloomberg. It turns out many of these are baby boomers who refinanced when rates were low. It was reported that 33.3 million single-family homes and condos were mortgage-free in this country, a 31% increase compared to 25.4 million homes a decade ago. Sounds like a very impressive statistic.

However, let’s compare the USA with other countries. A 2022 OECD study of 28 countries found the US had the third lowest percentage of households that owned their homes “free and clear” with no mortgages. Guess which country came out the highest… Lithuania at 83%, second Slovak Republic at 69%, third Hungary at 68%, fourth Slovenia at 68%, and fifth Poland at 66&. The United States, Denmark, and The Netherlands were at the bottom.

It looks like the countries where 30-year fixed-rate mortgages dominated, like the bottom three above, when interest rates fall, many homeowners will refinance into new 30-year mortgages even though they had less than 30 years left on their old mortgages. Therefore, free and clear homeownership is delayed. The OECD report also indicated, “looking at all homeowners whether they have mortgages or not, the overall household homeownership rates was highest in 19 of the 28 countries listed than in the US.”

The bottom line: 47.6% cash sales for residential sales in 8 Lakes Region towns for 2023 is very impressive. It truly shows the strength of our very unique market place.

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  search on 01/10/2023 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.

Waterfront Home Sales Activity on 10 of our Lakes Region Area Lakes

Waterfront Home Sales Activity on 10 of our Area Lakes

Most of the leaves have fallen, and political signs are disappearing in the Lakes Region. ...
Read More →
Woman hiking at Artist's Bluff in autumn. View of Echo Lake. Fall colours in Franconia Notch State Park. White Mountain National Forest, New Hampshire, USA

New Hampshire Named Second Safest State in America

In recent years, the country has faced increasing public safety challenges and severe climate events. ...
Read More →
Lots Of Activities Left in The Lake’s Region heading towards the end of fall

Lots Of Activities Left in The Lake’s Region Before Winter Arrives

A burst of warm weather & the crisp air of autumn has extended our fall ...
Read More →
join us for a festive celebration at Twin Barns in Meredith on Sunday, October 20th starting at noon as we raise a glass to the release of the Official Beer of the NH Pumpkin Festival!

NH Pumpkin Festival’s Beer Release Party at Twin Barn in Meredith

The peak foliage and perfect fall weather is as good as it gets in the ...
Read More →
Wolfeboro Waterfront New Hampshire Lakes Region Market Update for 9 Months

Lakes Region Market Update for 9 Months

It’s Columbus Day weekend, with lots of visitors enjoying the fall spectacle of color. I ...
Read More →
The Evolution of the Lakes Region: Balancing Growth and Tranquility

The Evolution of the Lakes Region: Balancing Growth and Tranquility

The Lakes Region of New Hampshire, known for its picturesque landscapes, serene waters, and small-town ...
Read More →
Mountain Bliss: Hiking the Peaks of New Hampshire in Autumn

Mountain Bliss: Hiking the Peaks of New Hampshire in Autumn

This past Tuesday was a bright, sunny autumn day, and I had no appointments scheduled, ...
Read More →
Why Fall is the Perfect Time to Sell Your Home in the Lakes Region

Why Fall is the Perfect Time to Sell Your Home in the Lakes Region

The fall season in New Hampshire’s Lakes Region offers a unique and strategic opportunity for ...
Read More →
Important Fed Decision and The Fall Market in The Lakes Region

Important Fed Decision and The Fall Market in The Lakes Region

On Wednesday, we received the much-anticipated Federal Reserve decision to slash its key overnight borrowing ...
Read More →
New Hampshire Housing Market Trends Broadview Condos in Gilford, New Hampshire

New Hampshire Housing Market Trends

New Hampshire’s housing market has been hitting the national airwaves and the Granite State has ...
Read More →
Second Home Market in The Lakes Region

Second Home Market in The Lakes Region

While practicing real estate in the Lakes Region during the past 48 years, I’ve always ...
Read More →
Meredith, New Hampshire. As summer fades into fall, the Lakes Region bids farewell to another season of sun-soaked days and bustling activity.

Goodbye Summer, Hello Fall

This summer has been one for the books in the Lakes Region. The area saw ...
Read More →
Disadvantages of Lockboxes and Unassisted Showings

Disadvantages of Lockboxes and Unassisted Showings

I was talking with one of our agents the other day, and she showed a ...
Read More →
Price Drops and Hot Sales: Inside New Hampshire’s Housing Market

Price Drops and Hot Sales: Inside New Hampshire’s Housing Market

On August 10th, I was reading an article on SmartNews called “If you live in ...
Read More →
Lakes Region Market Update for 7 Months

Lakes Region Market Update for 7 Months

Summer has been flying by, so I researched the closed real estate market activity for ...
Read More →
New Restaurant Hotspots You Need to Visit in the Lakes Region

New Must-visit Restaurants in the Lakes Region

The restaurant industry is a driver of economic growth and an integral part of the ...
Read More →
New Hampshire Housing Trends and Forecast

New Hampshire Housing Trends and Forecast

The New Hampshire housing market in 2024 is marked by increasing home prices and a ...
Read More →
Significant Land Sales in New Hampshire

Significant Land Sales in New Hampshire

As the summer of 2024 unfolds, the New Hampshire real estate market has seen a ...
Read More →

Inventory Shortage Impacts New Hampshire Housing Affordability

Real estate prices have continued to accelerate in New Hampshire after we saw a historic ...
Read More →
New Hampshire Advantage and Lakes Region Accolades

The New Hampshire and Lakes Region Advantage

We had a great Fourth of July in the Lakes Region, where we celebrated our ...
Read More →
New Hampshire's Fourth of July and Real Estate Boom

New Hampshire’s Fourth of July and Real Estate Boom

The Summer season is off and running, and it’s time to break out those fireworks! ...
Read More →
Summer in the Lakes Region on Little Squam

Ready, Set, Summer in the Lakes Region!

As the rumble of motorcycle engines fades into the background, the Lakes Region of New ...
Read More →
Manchester, New Hampshire, USA Skyline on the Merrimack River at dusk.

New Hampshire Cities in Top Hottest Housing Markets

New Hampshire keeps showing up on the radar as one of the hottest housing markets ...
Read More →
South Down Shores & Long Bay: Real Estate Market Analysis

South Down Shores and Long Bay: Market Trends

South Down Shores and Long Bay on Lake Winnipesaukee are two very popular water access ...
Read More →
Lake House Dreaming: Steps to Make It a Reality

Lake House Dreaming: Make It a Reality

Owning a waterfront home in New Hampshire’s Lakes Region is a treasured experience. For many ...
Read More →
Memorial Day

Beyond the BBQ: A Symphony of Remembrance and Summer Joy in the NH Lakes Region

Memorial Day serves as the official kick-off to summer in the Lakes Region. Towns ready ...
Read More →
Welcome to New Hampshire's Lakes Region

Welcome to New Hampshire’s Lakes Region

New Hampshire’s Lakes Region is one of the most stunningly beautiful places in the United ...
Read More →
The Granite State: Top Spot for Relocation in 2024

The Granite State: Top Spot for Relocation in 2024

New Hampshire just garnered major recognition as the best state to relocate to in 2024 ...
Read More →
Real Estate Sales Insights: Lakes Region Market Update

Real Estate Sales Insights: Lakes Region Market Update

It’s hard to believe we’ve already churned through 4 months of 2024. I researched the ...
Read More →
Market Trends – Spring 2024

Market Trends – Spring 2024

As a Realtor®, I’m always paying attention to the real estate market. I’m often asked ...
Read More →
Temperance Tavern in Gilmanton Sold

The Historic Temperance Tavern in Gilmanton Sold

Gilmanton—According to Frank Roche of Roche Realty Group in Meredith, the historic Temperance Tavern in ...
Read More →
Needs and Wants When Buying a Home Balanced

Balancing Needs and Wants When Buying a Home

In the current housing market, where choices are often limited, and demand frequently outstrips supply, ...
Read More →
Only two homes for sale at South Down Shores and Long Bay on Lake Winnipesaukee pictured above

Spotlight on Homes: New Hampshire Market Analysis

At present time, there are 1,007 single-family homes for sale in New Hampshire. The median ...
Read More →
New Hampshire Ranks High in Recent Studies

New Hampshire Ranks High in Recent Studies

Every day in our industry, we see how rising home prices have made it more ...
Read More →
South Down Shores Barn Complex Transformation

South Down Shores Barn Complex Transformation

In 1981, the transformation of Laconia’s scenic South Down Farm began, converting the former 126-acre ...
Read More →
Massachusetts and New Hampshire - a Tale of Two States

Massachusetts and New Hampshire – a Tale of Two States

Most of my articles talk about housing, trends, home values, and the desirable lifestyle we ...
Read More →
Spring flowers at the Belknap Mill in Laconia, New Hampshire

Spring Trends in Lakes Region Properties

It’s been one of those winters, or should I say lack of winters, that we ...
Read More →
Sales Snapshot: The Current Highest Prices Property For Sale in The Lakes Region Is on Governor's Island for $12,998,000

Sales Snapshot: New Hampshire’s Affordability Challenge

As we spring into March and approach our busy spring selling season, I thought I’d ...
Read More →
Gunstock Mountain in Gilford, NH

Gunstock: Gem of the Lakes Region

Nestled among the stoic peaks of the Belknap Mountain range in the heart of New ...
Read More →
Roche Realty Group Announces Top Producers for 2023

Roche Realty Group Announces Top Producers for 2023

Meredith — Frank Roche, president of Roche Realty Group, announced the top five producers for the ...
Read More →
AI and the Future of Real Estate

AI and the Future of Real Estate

Imagine, if you will, looking at a mysterious picture box filled with a whole world ...
Read More →
Prices rise Broadview Condominiums originally sold to the developer for $500,000

Prices Rise Ahead of Super Bowl Sunday

We’ve got a great match coming up for this year’s Super Bowl…The 49ers vs. the ...
Read More →
Smart Moves in Condominium Ownership Samoset

Smart Moves in Condominium Ownership

Here in the Lakes Region, a good part of our residential housing inventory is in ...
Read More →
Land Sales Unveiled: New Hampshire's 2023 Market

Land Sales Unveiled: New Hampshire’s 2023 Market

New Hampshire The Granite State… true to its motto, “Live Free or Die”, which encapsulates ...
Read More →
Exploring Cash Sales Dynamics in Lakes Region Real Estate

Exploring Cash Sales Dynamics in Lakes Region Real Estate

I was at a sales meeting at Roche Realty Group the other day, and we ...
Read More →
Roche Realty Meredith

Roche Realty Group Reports Over $150 Million in Sales

               Meredith- Frank Roche, President of Roche Realty Group, Inc., ...
Read More →
Lincoln, New Hampshire Riverwalk Resort

Lincoln, New Hampshire: From Mill Town to Ski Destination

Tucked in the heart of New Hampshire, sprawling across 131 square miles of varied terrain, ...
Read More →
Lakes Region Towns Stand Out For Their Spirit of Giving

Celebrating the Spirit of “Giving” in the Lakes Region

Nestled in the picturesque landscapes of New Hampshire, the Lakes Region stands out not only ...
Read More →
AI's Impact on the future of real estate

Real Estate’s Future: The Impact of AI

The other day, I was talking with my son Chris about the changes in the ...
Read More →
NH Lake Sales Activity - picture of lake with mountains and homes

Lakes Region Waterfront Sales 2022 vs. 2023

We’re getting near the end of the year, and I thought I would pull up ...
Read More →

Leave a Comment