Lakes Region real estate activity for the first 8 months has been strong

lake_winnipesaukee_nh

Article by Frank Roche, President of Roche Realty Group. 

 

Real Estate activity for the first eight months in the Lakes Region has been very robust. I have spoken with many Realtors® in our market area; they have all indicated the same trends. There is a lot of buyer interest with a limited amount of inventory for specific sectors of the market. This is the theme in many major markets throughout the country. The Lakes Region generally lags what is happening on the West Coast and in major cities in the Northeast such as Boston and New York. In the past, I have usually seen our trends start to follow the above markets within a two-year time frame. Based on the results I have seen this year to date, we appear to be following that rule of thumb. Here is insight on what I have seen happening recently in the Lakes Region:

 

During the first three quarters of 2019, the Lakes Region experienced an increase in market activity. For the eight towns surrounding Lake Winnipesaukee, the total closed sales volume of residential properties was $270,349,953 and represented an 8.3% increase over the same eight-month period of 2018. The median sales price increased by 5.6% to $299,950, whereas the average selling price went up 7.3% to $495,146. (Keep in mind that these numbers are inflated because they include waterfront sales within the residential homes category.)

The numbers above look good, considering we had a significant lack of homes for sale available compared to the previous year.

 

For the first eight months of 2019 waterfront properties in the eight towns surrounding Lake Winnipesaukee showed a closed sales volume of $122,373,700, which represented a 5.8% increase over the same period in the previous year. It is interesting, however, that the median selling price of $997,000 dropped 3.3% compared to the average selling price of $1,390,610, which increased by 14.3%. Several factors caused this disparity: The number of listings sold (88) dropped 7.4% compared to 2018, whereas on the high end of the market involving sales over $2 million, 17 properties sold in the first eight months of 2019 versus only 9 in the first eight months of 2018. This is a substantial increase.

The sales volume for properties in the $2 million range amounted to $56,980,750. This represents a 126% increase in sales volume compared to the same eight-month period of 2018. 

 

It’s hard to say what caused this spike in high-end sales during the first eight months. My guess is the stock market provided many investors with substantial returns over the past ten years. A number of them pulled some money out of the market and acquired a lakefront home as a vacation property to diversify their portfolios. We also found some business owners sold off their companies and used some of the proceeds to acquire a second property. This significant increase surprised me considering the new tax law changes regarding the deductibility of property taxes and mortgage interest limitations. 

As I said earlier, the Lakes Region market seems to lag the west coast and other significant markets. According to Redfin, sales of homes priced at $1.5 million or more fell 5% in the United States in the second quarter of 2019. There is nearly a 3-year supply of luxury listing in Aspen, CO, and The Hamptons in NY. Sales of properties over $2 million on Lake Winnipesaukee preformed utterly different than the national trend. Lake Winnipesaukee sales soared during the first eight months for properties over 2 million from a percentage standpoint.

 

Among the towns bordering Lake Winnipesaukee, seasonal homes represent more than 30% of all housing units in seven out of the eight towns. Respectively, Moultonborough has 60% seasonal homes, Tuftonboro has 53%, and Alton has 45% seasonal homes. Laconia was the lone exception with seasonal homes accounting for approximately 25% of the housing inventory. Second homes have shaped the Lakes Region into a very attractive mecca for the entire Northeast. We are New England’s playground — consistently growing as a haven for seasonal homes. The Lakes Region is a premier destination for affluent professionals seeking to vacation or semi-retire to a slower pace of living amid excellent recreational and cultural opportunities.

 

All types of properties have sold this past season. There was an extreme demand for starter homes for first time home buyers. However, finding homes priced under $200,000 has been increasingly difficult. Presently there are only 40 homes available in the eight towns surrounding Lake Winnipesaukee. There is a need for more affordable housing in our region. Unfortunately, the cost of new construction is so high it makes a resale product the only possible choice. The City of Laconia and some of the outlying towns have been solid choices for first time home buyers.

We have seen an increase in the upper price point of the non-waterfront residential market. Homes in the $350,000-$700,000 price range have seen some increases compared to previous years when the sales momentum was slower at this price point.

 

Water access communities such as South Down Shores and Long Bay on Lake Winnipesaukee have seen incredible demand this past season. Properties have been snapped up at a rapid pace and days on the market have dropped considerably. There are so many water access and condominium communities located on the various lakes that have been in significant demand. Listings are not plentiful this year, which has caused multiple offers in several sales. We have seen an increase in escalation clauses where buyers have been willing to pay a certain amount over the asking price.

The aging population and demographics of Baby Boomers continue the demand for semi-retirement properties scattered throughout the Lakes Region. This segment of the market is looking to downsize with master suites on the first floor and a more favorable low maintenance environment. The recreational resources and natural beauty of our region are drawing extreme interest from this segment of the market.

 

Today’s consumer is benefiting from a low-interest rate mortgage environment presently at 3.72% +/- for a 30-year fixed-rate mortgage and a 3.09% rate for a 15-year fixed-rate mortgage and healthy gains in the stock market during the past ten years. It is still a Seller’s Market out there. However, we are starting to see a gradual increase in new listings coming on the market.

Sales of commercial properties have finally started to show a gradual increase after a lag of activity for about eight years. At Roche Realty Group, we have produced some significant sales, from an array of buildings in the Lakeport area of Laconia along with office buildings and large commercial buildings on Union Ave. We have sold major storage and office buildings in Meredith and a few restaurants and a nightclub in the Weirs Beach area and Gilford. There was a major expansion of marina boat storage buildings throughout the region as well as self-storage buildings constructed. New businesses and medical facilities are opening, and residential builders and commercial contractors have been out straight this past year.

 

Looking ahead, we should be cautious and factor in similar market trends we have seen in the past. As a 43-year veteran of selling Lakes Region real estate, I have witnessed four major cycles with considerable volatility. There are many global concerns out there which could light a fuse and disrupt the market. It is crucial to stay educated on major events that are occurring and see how they will influence real estate trends. Ongoing trade wars, Brexit, central bankers, and political uncertainties worldwide could be of influence. You have to watch the bond yields which have been heading south and the negative yield curve.

 

I feel consumers and businesses have responded conservatively this time around unlike the last housing boom. Homeowners have not been using their homes like ATMs where many of them fell underwater as a result. There have not been as many cash-out refinances, and savings have increased significantly since the recession. Homeowners are presently sitting on a good amount of home equity and are not tapping it out like in the past. The low mortgage rate environment is helping, and the consumer is little more disciplined this time around. The Lakes Region has benefitted from the strong economy in New Hampshire and the Greater Boston market which has performed exceptionally well. We are in a good place right now. Let’s hope 2020 provides stability and a continuance of our positive real estate trends!

 

Frank Roche is the president of Roche Realty Group with offices in Meredith (603-279-7046) and Laconia (603-528-0088). You can learn more about the company and research a wealth of Lakes Region real estate information at: www.rocherealty.com

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 →
Winter Snowmobile

Real Estate in a Winter Wonderland

As I drove around the other day with my kids, I was looking at some ...
Read More →
Toys for Tots Drive

Roche Realty Host Annual Toys for Tots Drive

As the holiday season approaches, Roche Realty Group is excited to announce the kickoff of ...
Read More →
Small Business Saturday New Hampshire

Small Business Saturday Living Gratefully in New Hampshire

We have so many things to be thankful for here in New Hampshire: plenty of ...
Read More →
Annie Brown Joins Roche Realty Group

Annie Brown Joins Roche Realty Group

Meredith — Frank Roche, President of Roche Realty Group, Inc., with offices in Meredith and ...
Read More →
Gunstock Mountain in Gilford, NH

Gunstock Upgrades for Winter as Real Estate Shows Resilient Growth

As the leaves of New Hampshire’s forests transition from the vibrant hues of fall to ...
Read More →
Preserving New Hampshire's Lakes

Preserving New Hampshire’s Lakes: A Community Effort

With over 250 lakes and ponds throughout New Hampshire’s Lakes Region, there are unlimited outdoor ...
Read More →
Home Inspections — The Uninspected Abode: A Spine-chilling Tale of Regret and Terror!

The Uninspected Home: A Spine-chilling Tale of Regret and Terror!

One night, not many years ago, in a quaint, somber town nestled amidst the haunting ...
Read More →
Interest Rates

Interest Rates Impacted by Treasury Yields

It looks like the national picture for housing stats has not improved in recent months; ...
Read More →
Local Housing Crisis: Challenges and Solutions

Local Housing Crisis: Challenges and Solutions

Our communities are facing a shortage of both residential and commercial properties, a scenario that’s ...
Read More →
Fall Splendor In New Hampshire

Fall Splendor in New Hampshire

New Hampshire in the fall is akin to stepping into a live canvas painting — ...
Read More →
Samoset Condominiums on Lake Winnipesaukee

Condominium Sales Surge in New Hampshire’s Lakes Region!

As we start entering October’s bright fall colors, I thought I’d take a look at ...
Read More →
Empowering your offer

Empower Your Offer in a Sizzling Real Estate Market!

As a seasoned real estate professional, I often consider the market conditions to keep myself, ...
Read More →
Reviews of New Hampshire's Lakes Region

Reviews of New Hampshire’s Lakes Region

We’ve had a great summer in New Hampshire’s Lakes Region, and we’re approaching the brilliant ...
Read More →
Waterfont Sales Activity Wolfeboro, New Hampshire

Waterfront Sales Activity in the Lakes Region

As we head into September, I have compiled data and insight into what is happening ...
Read More →
Labor Day Weekend

Labor Day Weekend in The Lakes Region

Labor Day Weekend has arrived, and the weather forecast for the Lakes Region looks fantastic, ...
Read More →
Interest Rates

The Mortgage Interest Rate Dilemma

This past week, we saw an increase in mortgage rates following a rise in bond ...
Read More →
Best State To Live In — New Hampshire at #3

New Hampshire 3rd Best State To Live In!

WalletHub just released its rankings of the best state to live in for 2023. It’s ...
Read More →
City/Town Comparison can make the research process easier

City/Town Comparison For Your Move

Some studies place moving to a new location as one of the top ten most ...
Read More →
New Hampshire Real Estate Lacks Inventory

New Hampshire Real Estate Inventory Crisis

A Multifaceted Analysis of Rising Interest Rates and Beyond New Hampshire is currently facing a ...
Read More →
Peaks of New England

Exploring the Peaks of New England

In my younger years in school, I always loved geography. Living in New Hampshire, there ...
Read More →
Climate Exodus: Insurance Companies Seeking Refuge from High-Risk Sates

Climate Exodus: Insurers’ Fleeing High-Risk States

Flooding, Forest Fires, Heat Waves, Tornados, oh my! The recent stretch of weather has certainly ...
Read More →
Real Estate News Headlines - Lakes Region NH

Real Estate Tidbits to Consider

Here are a few real estate tidbits I’ve pulled to keep you up to speed ...
Read More →
Roche Realty Group Sells out Lakeside at Paugus Bay

Roche Realty Group — 6 Months in Review

Closed sales for the first 6 months of 2023 have been impressive at Roche Realty ...
Read More →
Newfound Lake

Lakes Region Waterfront Sales Activity 6 Month Comparison

Below you will find data and insight into what is happening in sales activity on ...
Read More →
Buying Land

Buying Land in New Hampshire — Comprehensive Guide

New Hampshire, also known as the Granite State, offers a diverse landscape that includes picturesque ...
Read More →

Leave a Comment