On Wednesday, we received the much-anticipated Federal Reserve decision to slash its key overnight borrowing rate by a half percent point or 50 basis points based on their research that inflation was moderating and the labor market was weakening. This was great news, considering the last time the Fed reduced rates was in March of 2020 in response to the economic shutdown brought about by the spread of COVID-19.
In other good news, the Fed projected lowering interest rates by another half point before the end of 2024, plus another full percentage point cut in 2025. It appears that the decision’s impact will ripple into the economy slowly. Ahead of the decision, mortgage interest rates came down again last week and will likely fall further after the rate cut and into the close of the year. This will provide a current for the real estate market going into our strong fall season here in the Lakes Region, but it is unlikely that we will return to the pandemic-era low rates that we experienced.
There’s something magical about autumn in the Lakes Region, the foliage season attracts people from all over the country to experience the vibrant colors that paint the landscape with hues of red, orange, and gold. It’s also the perfect time of year to showcase a home for sale because homes are framed by this natural beauty making them more attractive to potential buyers.
I thought I would provide an overview of what’s presently listed for sale and in some of our Lakes Region towns and lakes. The inventory situation is slowly improving and with lower rates heading in the right direction it’s a great time to look at properties with the stunning backdrop of fall foliage.
Laconia:
36 single-family homes for sale, median listing price $709,900,
58 condos for sale, median listing price $509,450
Gilford:
30 single-family homes for sale, median listing price $849,500,
9 condos for sale, median listing price $550,000
Meredith:
34 single-family homes for sale, median listing price $774,945,
9 condos for sale, median listing price $479,900
Moultonborough:
45 single-family homes for sale, median price $1,475,000,
3 condos for sale, median price $895,000
Tuftonboro:
20 single-family homes for sale, median listing price $919,500,
2 condos for sale, median listing price $1,099,500
Wolfeboro:
35 single-family homes for sale, median listing price $779,900,
2 condos for sale, and median listing price $605,000
Belmont:
22 single-family homes for sale, median listing price $575,000,
1 condo for sale, median listing price $249,998
Tilton:
3 single single-family homes for sale, median listing price $499,900,
3 condos for sale, median listing price $399,999
Lake Winnipesaukee waterfronts (including islands):
57 waterfront homes for sale, lowest price $649,000 on Bear Island, highest price $10,950,000, median listing price $2,795,000
Lake Winnisquam waterfronts:
9 waterfront homes for sale, lowest price $1,185,000, highest price $2,795,000, median listing price $ 1,750,000
Squam Lake waterfronts:
5 waterfront homes for sale, lowest price $3,950,000, highest price $9,5000,000, median listing price $6,500,000
Looking at the above numbers, you can see how the median listing prices have increased considerably in many of our towns and lakes. Keep in mind the single-family and condominium totals include waterfront homes which raises the medium prices to high levels. The lowering of interest rates will slowly allow more buyers to increase their searches for new properties. However, affordability conditions still need to improve. We are seeing more price reductions and longer days on the market, which is a good sign with the epic run up in prices we saw during and after the pandemic with low interest rates. We needed to see the market cool down and put the market at more realistic pricing strategies. Unfortunately, with limited inventory, it’s like turning a large ship around in the harbor. It takes time, and we have to await the normal process for more opportunities to become available.
This article was written by Frank Roche. Frank is president of Roche Realty Group in Meredith, NH, and can be reached at (603) 279-7046. Data was compiled by a NEREN search on 09/18/2024 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.
