On the waterfront…   We are halfway through the year and it seems appropriate to take a look and see how waterfront properties on the four major lakes in the Lakes Region are selling. Waterfront sales are a huge part of our total real estate market.  It is pretty clear to see from the following charts that most waterfront sales occur in the second half of the year, but it is worth a look to see how the first half sales stack up against prior years. All  the numbers in the chart are derived from sales occurring between Jan. 1 and June 30 of each year. These sales also include island properties.
 
Sales on Lake Winnipesaukee are off to a slower start than the past three years. We are down about 35% from last year but show an increase of $286,779 in the average sale price. Twenty of the thirty three sales were over $1 million. Eight of those million dollar plus sales were in Moultonborough. Gilford, Meredith, and Alton each posted three sales, and Laconia, Meredith, and Wolfeboro had one sale each.
 
Winnisquam, Squam, and Newfound lakes don’t have the sales volume of Winnipesaukee. After all, Winnipesaukee is a much larger lake bordering eight communities.  Winnisquam is the more affordable of the four lakes listed and posted four sales with a slightly lower average sales price than last year. Squam Lake had the highest average sales price of the four lakes in 2007 and posted two sales so far this year but dropped $400,000 in the average sales price. Newfound has had only one sale so far at an entry level price of $330,000.  With far fewer sales on these three lakes, lower average sales numbers don’t necessarily point to lower overall waterfront prices. They more likely reflect the lower values of the particular properties that sold. In any event, waterfront sales are a good indicator of how well the Lakes Region economy is doing overall, so let’s hope for a strong second half of the year.

Winnipesaukee Sale Jan - June 2008

Winnisquam Sales Jan - June 2008

Squam Sales Jan - June 2008

Newfound Sales Jan-June 2008

Half Way There…

We are at the halfway mark of the 2008 sales year and I was hoping to report by this time that the tide had turned and that things are definitely on the up swing as far as sales here in the Lakes Region. I can’t quite say that yet as it seems that the tide may still be out and our boat still resting on the bottom. First the good news. The good news is that the number of residential homes sold in the 12 towns listed came in at 77 units compared to 65 in June and 46 in April. That feels a little better. But the bad news is that it was still 20% off from last June. In looking at the first six months of 2008 there were 314 residential homes sold compared to 394 in the first 6 months of 2007. That is also about 20% fewer sales compared to last year for the six month period.

Looking back at the first half of each year in this decade, 2008 is definitely the worst start we have had. The average days on market has also increased steadily since 2003. Practically each year though, there has been an increase in the average sales prices of the homes sold.

Residential Sales Comparisons for January - June

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While the sales numbers are down and homes are definitely harder to sell right now, the fact that the average sales price for a home in these towns has increased from $212,818 in 2000 to $363,753 in 2008 or about 70% is pretty impressive. Even with a slight drop in the average sales price compared to 2007 we are still above 2006 levels. But before you go thinking that home prices aren’t falling and that you can ask more for your home when you sell, we have seen significant price reductions on homes in all price categories. The fact that our average sales price is holding up well is in part due to the fact that more higher priced homes are selling combined with fewer sales. Numbers alone can be a little misleading.

Many agents and home inspectors I have spoken with recently report increased activity. As of 7/21/08 there were 124 pending sales in the communities listed so many more sales are in the pipe line. We are at the height of our sales season and buyers are out looking. Let’s hope the tide comes in soon.

Residential Homes Sold June 2008

Report covers the towns of Aton, Barnstead, Belmont, Center Harbor, Gilford, Gilmanton, Laconia, Meredith, Moultonborough, New Hampton, Sanbornton, and Tilton

Live in a Toyota?

The residential inventory in our Lakes Region of New Hampshire communities continues to grow as we reach the peak summer selling season. We are up just about a hundred homes on the market compared to last month. Could there be a Toyota in your future?  Maybe. I bet you didn’t know that second largest auto maker in the USA also builds homes. According to a July 2 Wall Street Journal article, Toyota has actually been building steel frame prefab homes on a small scale in Japan since 1975. They use the same production line model that the giant automaker uses to churn out Corollas and Camrys. The Toyota home is built out of ”cubicles” that are stacked together like Legos. It usually takes about 6 or more cubicles and about 45 days start to finish to construct the average home.  Homes cost from $200,000 for a 1,000 sq ft model up to $800,000 for the loaded “Lexus” model. The average Japanese home only lasts about 30 years and then it is demolished and a new structure built in its place.  Toyota built homes are designed to last about twice as long.  That still doesn’t seem to be a very long life compared to the century old homes we have here in New England and other parts of the country. Toyota is applying its car technology in their homes with things like a “smart key” that will fit your car and your home, sound deadening, and rust proofing. It sounds kind of funny to rust proof a house, but these are steel framed homes. If you’re old enough, you’ll remember that the early Japanese cars rusted away before your eyes! I guess they didn’t want to take any chances. Toyota is also testing electricity monitoring devices that will charge your electric hybrid vehicle during off peak periods too keep monthly electric bills low. The batteries in you car would also provide a limited amount of electricity back to the home in blackouts. They are also experimenting with using solar panels as siding and powering homes with fuel cells. A hybrid without wheels so to speak. 

Much to my dismay, Toyota won the NASCAR Coca Cola 400 on July 5. Seems a little un-American on our country’s birthday weekend.  Toyota does make a great car but it has no plans to build homes here in the U.S.A., so if there is a Toyota in your future it will have to be the four wheel version.  And that’s OK because I’m not sure what would happen if you parked a Chevy or Ford inside a Toyota built garage, it just wouldn’t feel right…

Residential Homes Available as of July 1

Towns of Alton, Barnstead, Belmont, Center Harbor, Gilford, Gilmanton, Laconia, Meredith, Moultonborough, New Hampton, Sanbornton, and Tilton