Lakes Region Residential Price Reductions Rise as Winter Approaches
All of us have watched the colors turn this colorful season, and Mount Washington recorded 1.2 inches of the white stuff on the night of October 21st. With only 1.6 inches to date, it falls short of the 19-inch average snowfall for October on the Northeast’s highest peak.
As the season slowly gives way to winter, I thought I would research the current inventory of active real estate listings for sale and determine how many of these listings have had price reductions during their listing periods.
Researching Lakes Region Real Estate Listings
I was quite surprised when I analyzed the information. Basically, I pulled up the 25 towns and cities that make up what we call the “Lakes Region” and selected only residential properties, including single-family homes, condominiums, and mobile homes.
I then picked all of the current active listings in those categories and broke out all of the listings that had price reductions during their listing tenure. Keep in mind, many of those listings have had multiple price improvements. However, I only pulled the total price reductions to reflect how much each property was reduced in price over the course of the listing, compared to what it was originally listed for.
The Data: Lakes Region Price Reductions
Here’s what I came up with:
Of the 25 towns and cities, there are a total of 468 active listings (single-family, condominiums, and mobile homes), and out of this total, there were 229 properties that have experienced price reductions over the course of their listing.
The total dollar volume of price reductions amounted to $32,057,087.
The average total price reduction came in at $139,987 when I totaled all of the price reductions and divided it by 229 properties. Keep in mind the average price is distorted because of the number of waterfront or high-end homes that had major price reductions compared to lower price properties.
There were, however, 83 properties that had price improvements of $100,000 or more, up to $2,400,000.
On Lake Winnipesaukee alone, there are currently 46 active listings for sale with a median listing price of $2,850,000, an average sales price of $3,784,799, with 112 median days on the market.
Where Are Price Reductions Happening Most?
Laconia had the most properties with price reductions at 27,
followed by Wakefield (21), Alton (19), Meredith (18), Moultonborough (16), Belmont (16), and Gilford (14).
The towns with the lowest number of price reductions were Tilton (1) and Hebron (1).
The average days on the market for the 229 properties that had price reductions was 116 days. This figure is much higher than the median days on the market for recently closed sales, indicating that there will likely be more price concessions going into the winter months.
High-End Homes and Significant Price Reductions
The property with the largest number of days on the market was 20 Wyman Drive in Wolfeboro with 859 days on the market. The property was originally listed at $12,500,000, and the current price is now $10,950,000, a $1,550,000 reduction in price.
The property with the largest price reduction was 104 Hopewell Road in Alton. The property was originally listed at $9,850,000, and the current price is now at $7,450,000, a $2,400,000 reduction in price.
What Causes Price Improvements in the Lakes Region?
Looking at the above active listings that have had price reductions and are still on the market and haven’t sold, the biggest factor is usually the price, followed by the condition of the property, possibly the location, or it could even be the marketing of the property.
I recently came across a good example of a property that did not sell because of the marketing, in my opinion. The property was on an island on Lake Winnipesaukee that had a winter exterior photo on the listing sheet in MLS. The winter photo was on the listing sheet during the entire spring + summer marketing season.
Most of us would agree that island properties do not look desirable during the winter months. The marketing would have been enhanced immensely by using professional summer photography to show it in its best light, with 3D Matterport Tours, drone photography, a striking video tour, flash ambient photography, and 3D-generated floor plans.
Without these elements, listings will struggle to compete for attention online, and at Roche Realty Group, we place our properties on over 80 websites or portals through syndication for maximum exposure.
Additionally, the property should have social media exposure on Facebook, Instagram, YouTube, TikTok, and targeted digital channels. You also want to integrate local and regional print advertising and inclusion in company listing magazines, distributed throughout the Lakes Region.
Time for a Market Analysis?
If a property has been lingering on the market, it’s probably time for an updated market analysis of the property’s value in changing market conditions. Going into the winter season is one factor to consider.
How will interest rate changes affect the price? What about changing stock market conditions? The government shutdown? The economy? Or geopolitical events?
Other Factors Behind Price Improvements
So many times, it’s the condition of the property that affects marketability and days on the market. In recent years, I’ve seen dated properties that need extensive work become overlooked. The homes are expensive to start, never mind adding costly repairs and renovations.
Houses in move-in condition sell so much faster in today’s market because everyone is so busy. Curb appeal is important, and the condition of the grounds and exterior generates initial interest.
On the inside, I’ve seen many cases when professional or virtual staging has helped. Location is always paramount in the buyer’s eyes.
Is the property on a heavily traveled road with road noise or in a commercial residential/mixed-use area? How close is the property to schools, shopping, conveniences, and recreational amenities like a town or neighborhood beach, ski areas, or hiking trails?
If the preference is country living, a more rural location with open fields and more woodlands would be desirable.
Final Thoughts on Price Improvements and Market Strategy
In any case, as we approach a different season, it’s wise to look at the above statistics and look at the overall approach to marketing your property.
Consult with your real estate advisor frequently to see where your property stands on all of the above issues. Valuable insight and periodic updates with your REALTOR® will pave the way to sell your property in the near future.
This article was written by Frank Roche. Frank is president of Roche Realty Group located in Meredith, NH, and can be reached at (603) 279-7046. Data was compiled from PrimeMLS 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.
FAQ
Q1: What is a price reduction in real estate?
A price reduction occurs when a property’s listing price is lowered by the seller during its time on the market to attract more buyers or reflect current market conditions.
Q2: Why are price reductions common in the Lakes Region real estate market?
Price reductions in the Lakes Region often occur due to extended days on market, seasonal trends, changing buyer demand, property condition, or initial pricing above market value.
Q3: Which towns in the Lakes Region have the most price reductions?
Based on current data, Laconia, Wakefield, Alton, Meredith, Moultonborough, Belmont, and Gilford have the highest number of residential price reductions.
Q4: How do price reductions affect the sale of a property?
Price reductions can increase buyer interest, generate more showings, and help properties sell faster, especially if the home is priced appropriately and marketed effectively.
Q5: What factors contribute to a property needing a price reduction?
Key factors include the property’s condition, location, marketing strategy, seasonality, and broader market conditions such as interest rates or economic changes.
Q6: How can sellers avoid unnecessary price reductions?
Sellers can avoid unnecessary price reductions by pricing their property accurately from the start, enhancing curb appeal, investing in professional photography and staging, and consulting with an experienced real estate advisor regularly.
