New London Agency Sotheby’s International Realty Reports Luxury Home Sales Reach Six Year High
As an old song from the 1930s goes “Better Days Are Here Again” and the local luxury home market is whistling that tune! The luxury market, which is comprised of homes selling over the one million dollar price point, fell victim to hard times during the recession but it appears we’ve turned the corner here in the Lake Sunapee region of New Hampshire. It’s no surprise that the stock market crash in the fall of 2008 dampened demand for real estate in general. Buyers were clearly taking a ‘wait and see’ approach to real estate. At the height of the recession, economic conditions were particularly unkind to the high end real estate market. In 2009, inventory grew to its highest level in over 6 years. However, as the overall economy started to rebound and asking prices started to reflect new market realities, pent up demand from buyers sitting on the sidelines initiated a slow but steady recovery. Savvy buyers understood that real estate values were at their best levels since the early 2000′s and that demand for quality listings in desirable areas always rebounds first after a difficult economic stretch. Buyers started to re-enter this segment of the market rather than wait any longer and potentially miss a great opportunity. Growing consumer confidence and historically low mortgage rates certainly contributed to this rebound as well. As a result, units sold in this category have grown 120% and total sales volume is up 83% since the lows of 2009.
This resurgence certainly didn’t come without major angst on the part of buyers and sellers alike and despite this trend buyers are still looking for value. Pricing remains everything. The bottom line is that if buyers and sellers employ a realistic view and enter into a negotiation in good faith, deals will come together.
For a complete report on the luxury market in the Lake Sunapee Region, contact Doug Peel at doug.peel@sothebysrealty.com or call Doug at 603-520-7753.
