Lincoln N.H. Five Year Market report – price comparison.
In order for a comparison to make any reasonable conclusions I decided to study a narrow field of specific properties. All sales for this study were of Condominiums – 1,200 – to-1,800 square feet, 3 bedrooms & 2 Baths with an asking price of no less than $100,000 and no more than $350,000.
#sales /Finished Sq Ft /Asking /Closed /Days on market
Closed in 2007
15 /1,469/ $263,500 /$257,770 / 110
Closed in 2008
11 /1,463 / $262,000/$243,250 / 242
Closed in 2009
19 /1,461 /$236,800 /$221,700 / 177
Closed in 2010
31 /1,504 /$233,800 /$218,300 / 273
Closed in 2011
23 /1,476/$228,300 /$209,700 / 330
In this five year market cycle we saw asking prices fall by 14% and selling prices fall by 19%...days on the market increased by 300%, the number of sales fluctuated significantly –but only due to the narrow type of condominium studied. In fact more of the 2 bedroom sized condos sold in 2008 (the low number in this study) and more single family homes were chosen in 2011 which is consistent with a recent survey of second home property sales I published last Month National Second home study. This study concluded consumers wish to get away from the expense of private club facilities and would opt for smaller more efficient style ownership.
Conclusions: Our Market in the White Mountains of New Hampshire mirrors many other recovering areas with a 20% loss of value over 5 years. Many projects with more development to come, are holding back on building and inventory is Creeping up…from a 4 month inventory to a 11 month inventory.
Predictions: We will see a loss of value in the order of another 3-4 % in 2012 and a modest recovery after the November elections. This will bring new construction starts and stabilizing prices in 2013 and beyond. Prices will gain appreciation from 2013 on. This was a ten year cycle that we are near/ at the bottom of, and if you are a seller and purchased more than 12 years ago you are able to sell at a small profit. Everyone in for the long haul may want to wait for a bit more recovery. Investment sales- If you are selling to move in to a new market location so long as you are buying when you sell…you will swap equity at the same time (sell modest / buy modest). For the 1031 exchange buyer – a like exchange is always a good plan to currently avoid capital gains tax on your current sales.
* These comparisons were done to show a narrow field, but the conclusions can be drawn for the entire market no matter the type of property held.#'s provided by Local MLS - no private sales were included in this study. * All area listings can be seen by opening the MLS icon on the bottom of this post - search by town - price range or type of property throughout the 44 towns of Grafton County New Hampshire. Happy New Years All.
Your-White Mountain New Hampshire real Estate Expert
steve@alpinelakes.com toll free 800-926-5653 /cell 603-381-7898
MLS search and Realtor web site: www.alpinelakes.com
My outside Blog: www.steveswhitemountainblog.com
Lincoln NH & Local interest site: www.localism.com/nh/lincoln
I say this downturn has lasted long enough- five- six years! Time to dump and move upward! Happy New Year Steve!
Monika...It is time to move on - buy what makes sense and sell what doesn't no matter the current return...it all works out in the long run.
Steve, This 5 year report tells a story with the numbers. The great part is that many markets across the nation are recovering. Seems like only yesterday when the markets started to decline ... and here we are in recovery.
Kathleen... thanks - I think we are so close to the bottom that we may as well call it there....so it's all uphill from here.
Howdy and afternoon Steve
Steve my friend, Welcome to the New Year of 2012! Hope y'all had a mighty fine and safe New Year's Eve!
Happy New Year to you and your family!
May each and everyday bring you and your family an abundant of blessings for the rest of 2011 and all the way though the New Year of 2012!
Have a good one
Dale in New Hampshire
Thanks Dale...all the same to you. Steve