2020 Year End Luxury Market Report

Page 1

Luxury Market Report

Y E AR E N D 2020


LUXURY MARKET OVERVIEW YEAR END 2020

LUXURY IS AN EXPERIENCE We are pleased to share our Year-end 2020 Luxury Market Report covering both New Hampshire and Vermont. We define the Luxury Market in two ways; homes sold over $600K and homes sold over $1MM. This approach provides you with more detailed information to make an informed real estate buying and selling decision no matter the segment of the luxury market you are considering. Four Seasons Sotheby’s International Realty is the Luxury Market leader with +86% more properties sold in the $600K+ segment and +121% more properties sold over $1MM+ than our next closest competitor in the two states combined. These results are a direct consequence of our brand’s reach and power, together with our associates and staff’s ongoing commitment to providing the highest level of service and expertise to Buyers and Sellers alike. It would be our privilege to service all of your real estate needs throughout the beautiful states of Vermont and New Hampshire. Alan DiStasio - CEO Staige Davis - President *Source: Trendgraphix Data - 1/1/20 - 12/31/20 - All VT & NH Counties Combined


2020 - A Year Like No Other COVID-19 dramatically impacted the Luxury Market throughout 2020. Initially January and February sales were on pace to set a record for our company, but selling activity slowed dramatically in March, April, and May as complications and uncertainty surrounding Covid-19 started to mount. Then as the two states began to reopen in June, pending transactions rocketed to a torrid pace. By year’s end, all expectations had been greatly exceeded. Total properties sold in 2020 increased 66% for homes over $600k and were up 88% for homes over $1MM in the two states combined. Additionally, the Average Sale Price increased slightly by 3% for properties over $600K but increased a modest 1% for $1MM+ properties. Lastly, Average Days on Market decreased for listings over $600K by 13% and decreased slightly by 1% for all $1MM+ properties sold. New Hampshire New Hampshire exhibited a strong luxury market with the number of properties sold over $600K increasing 58% along with an average sale pricing up 1%. For listings over $1MM, the number of properties sold increased by 60%, while the average selling price increased by 1%. Vermont The impact of COVID-19 made it difficult to show properties in Vermont during the peak shutdown period, but that didn’t stop us from providing the best service possible while strictly adhering to CDC guidelines. The number of properties sold over $600K increased by 87%, and the average sale price increased 10%. The bright spot was in transactions over $1MM; the number of properties sold increased 171%, while the average sale price increased 2%. Gazing Into The Crystal Ball There is no question that the Luxury Market bounced back in an unsurpassed way after COVID-19 first took hold last spring. The result led to demand far outpacing supply. Bidding wars were commonplace, and we closed multiple transactions in both states without the buyers ever having set foot in the property until after it closed. None of us could have anticipated that this would be a part of the real estate narrative in 2020. In retrospect, it was easy to see what drove the market; the pandemic provided buyers an opportunity to assess where they would prefer to raise their families. They took a hard look at the healthy lifestyle that New Hampshire and Vermont provide and liked what they saw. Additionally, many companies re-evaluated their work from home policies, giving employees far more options where to live; many choose to live where they recreate. Financial markets remained strong, and interest rates remained at record lows, even for jumbo loans. So what does this mean for 2021? The lack of homes for sale remains a major impediment for buyers and sellers alike. However, we can report that three weeks into the new year, Four Seasons Sotheby’s International Realty continues to experience the same activity level we did in the second half of 2020. Work from home policies are becoming permanent for many employees, and interest rate projections indicate they will start to rise in 2021, albeit nominally. Newcomers to New Hampshire and Vermont continue to extol the benefits of living in our beautiful part of the world, and unfortunately, the pandemic will be with us for the foreseeable future as states wrestle with vaccine rollouts. Ultimately, we cannot say for certain how 2021 will wind up, but we do believe that current market activity will continue at least into the latter part of this year. Now more than ever, buyers and sellers alike will benefit from the local market knowledge our associates possess. Current market dynamics mean that our associate’s services are all the more valuable. Today, please call us to learn how one of our professional associates may best help you navigate the state of the luxury real estate market in New Hampshire and Vermont 2021. *Source: Trendgraphix Data - 1/1/20 - 12/31/20 - All VT & NH Counties Combined


LUXURY REPORT $600K+ VT & NH COMBINED

YEAR END 2019

YEAR END 2020

% CHANGE

1979

3,279

66%

$923,324

$952,631

3%

112

98

13%

NUMBER OF PROPERTIES SOLD AVERAGE SALE PRICE AVERAGE DAYS ON MARKET

Source: NNEREN 1/1/19 - 12/31/19 and 1/1/20 - 12/31/20 — All VT & NH Counties Combined

NUMBER OF HOMES FOR SALE VS. SOLD VS. PENDED (JAN. 2020 - DEC. 2020)

For Sale Sold

1500

Pended

1390

1355

1345

1350

1481

1438

1278

1236

1271 1199

1200

1105

1050

1005

900

861

750 600 524 469

450

493 396

380

300

304

295

233

150 0

130 103

1/20

159

149 88

2/20

134

3/20

134 140

4/20

143

5/20

251

6/20

367

7/20

414

8/20

459

9/20

Source: Trendgraphix utilizing NNEREN data 1/1/2020 - 12/31/2020 — All VT & NH Counties Combined

495

10/20

395

11/20

414

12/20


LUXURY REPORT $600K+ VT & NH COMBINED

TOTAL SALES IN $

TOTAL SALES IN UNITS

(JAN. 2020 - DEC. 2020)

(JAN. 2020 - DEC. 2020)

169M

220

631

258

688.9M

308.1M

259.6M

304

324M

339

FSSIR

COMPETITOR 1

COMPETITOR 2

COMPETITOR 3

COMPETITOR 4

*Source: Trendgraphix Data - 1/1/20 - 12/31/20 — All VT & NH Counties Combined


LUXURY REPORT $1MM+ VT & NH COMBINED

YEAR END 2019

YEAR END 2020

% CHANGE

422

793

88%

$1,636,051

$1,640,985

.3%

128

127

.8%

NUMBER OF PROPERTIES SOLD AVERAGE SALE PRICE AVERAGE DAYS ON MARKET

Source: NNEREN 1/1/19 - 12/31/19 and 1/1/20 - 12/31/20 — All VT & NH Counties Combined

NUMBER OF HOMES FOR SALE VS. SOLD VS. PENDED (JAN. 2020 - DEC. 2020)

For Sale

600

Sold Pended

540

520

480 429

466

458

450

507

483 455

436

417

420

393 354

360 300 240 180 120

40

136 103

88

68

60 0

139

119

69

24 28

26

21

26

23 30

26

60

76

1/20

2/20

3/20

4/20

5/20

6/20

7/20

95

8/20

112

9/20

Source: Trendgraphix utilizing NNEREN data 1/1/2020 - 12/31/2020 — All VT & NH Counties Combined

55

149

97

10/20

11/20

105

12/20


LUXURY REPORT $1MM+ VT & NH COMBINED

TOTAL SALES IN $

TOTAL SALES IN UNITS

(JAN. 2020 - DEC. 2020)

(JAN. 2020 - DEC. 2020)

89.9M

59

215

65

132.8M

371.6M

140.9M

85 97

FSSIR

185.7M

COMPETITOR 1

COMPETITOR 2

COMPETITOR 3

COMPETITOR 4

*Source: Trendgraphix Data - 1/1/20 - 12/31/20 — All VT & NH Counties Combined


LUXURY REPORT $600K+ VERMONT

YEAR END 2019

YEAR END 2020

% CHANGE

531

994

87%

$891,425

$976,195

10%

170

155

9%

NUMBER OF PROPERTIES SOLD AVERAGE SALE PRICE AVERAGE DAYS ON MARKET

Source: NNEREN 1/1/19 - 12/31/19 and 1/1/20 - 12/31/20 — All VT Counties Combined

NUMBER OF HOMES FOR SALE VS. SOLD VS. PENDED (JAN. 2020 - DEC. 2020)

For Sale Sold

700

600

Pended 598

597

593

660 623

607

592

596 559 528 491

500

446

400

300

200 171

168

161 133

103

100

92

68 30

0

26

1/20

37

26

29 27

25 30

27

47

2/20

3/20

4/20

5/20

6/20

85

7/20

132

8/20

149

9/20

Source: Trendgraphix utilizing NNEREN data 1/1/2020 - 12/31/2020 — All VT Counties Combined

173

10/20

76 123

11/20

147

12/20


LUXURY REPORT $600K+ VERMONT

TOTAL SALES IN $

TOTAL SALES IN UNITS

(JAN. 2020 - DEC. 2020)

(JAN. 2020 - DEC. 2020)

77.3M

79 106.1M

87

368

368.4M

96

85.7M

195.4M

201

FSSIR

COMPETITOR 1

COMPETITOR 2

COMPETITOR 3

COMPETITOR 4

*Source: Trendgraphix Data - 1/1/20 - 12/31/20 — All VT & NH Counties Combined


LUXURY REPORT $1MM+ VERMONT

YEAR END 2019

YEAR END 2020

% CHANGE

105

285

171%

$1,517,698

$1,541,883

2%

182

190

4%

NUMBER OF PROPERTIES SOLD AVERAGE SALE PRICE AVERAGE DAYS ON MARKET

Source: NNEREN 1/1/19 - 12/31/19 and 1/1/20 - 12/31/20 — All VT Counties Combined

NUMBER OF HOMES FOR SALE VS. SOLD VS. PENDED (JAN. 2020 - DEC. 2020)

For Sale Sold

300

Pended

275 256

250 225

228

225

223

243

234

226

230 216

216 200

200

183

175 150 125 100 75 54

50

45

36

30

25 0

45

7 3

8 4

7 9

9 9

1/20

2/20

3/20

4/20

18

7

13

25

40

5/20

6/20

7/20

8/20

37

9/20

Source: Trendgraphix utilizing NNEREN data 1/1/2020 - 12/31/2020 — All VT Counties Combined

29

24

53

38

47

10/20

11/20

12/20


LUXURY REPORT $1MM+ VERMONT

TOTAL SALES IN $

TOTAL SALES IN UNITS

(JAN. 2020 - DEC. 2020)

(JAN. 2020 - DEC. 2020)

26

45.4M

42

72M

120

54

177.5M

103.7M 89.9M

59

FSSIR

COMPETITOR 1

COMPETITOR 2

COMPETITOR 3

COMPETITOR 4

*Source: Trendgraphix Data - 1/1/20 - 12/31/20 — All VT & NH Counties Combined


LUXURY REPORT $600K+ NEW HAMPSHIRE

YEAR END 2019

YEAR END 2020

% CHANGE

1448

2285

58%

$935,022

$942,381

.8%

90

73

19%

NUMBER OF PROPERTIES SOLD AVERAGE SALE PRICE AVERAGE DAYS ON MARKET

Source: NNEREN 1/1/19 - 12/31/19 and 1/1/20 - 12/31/20 — All NH Counties Combined

NUMBER OF HOMES FOR SALE VS. SOLD VS. PENDED (JAN. 2020 - DEC. 2020)

For Sale Sold

800

783

Pended 714

699

700

766 714

634

600

630

604

599 538

500

480

383

400 338

300 268

286

314 251

214

200

198 149

100 0

116

94

114

66

60

1/20

2/20

106 101

3/20

101

4/20

110

5/20

196

6/20

265

7/20

269

8/20

295

9/20

Source: Trendgraphix utilizing NNEREN data 1/1/2020 - 12/31/2020 — All NH Counties Combined

308

10/20

258

11/20

252

12/20


LUXURY REPORT $600K+ NEW HAMPSHIRE

TOTAL SALES IN $

TOTAL SALES IN UNITS

(JAN. 2020 - DEC. 2020)

(JAN. 2020 - DEC. 2020)

216

107.3M

263

194.4M

155.5M 258 214.5M

314 184.8M

301

FSSIR

COMPETITOR 1

COMPETITOR 2

COMPETITOR 3

COMPETITOR 4

*Source: Trendgraphix Data - 1/1/20 - 12/31/20 — All VT & NH Counties Combined


LUXURY REPORT $1MM+ NEW HAMPSHIRE

YEAR END 2019

YEAR END 2020

% CHANGE

317

508

60%

$1,675,253

$1,696,584

1%

110

92

16%

NUMBER OF PROPERTIES SOLD AVERAGE SALE PRICE AVERAGE DAYS ON MARKET

Source: NNEREN 1/1/19 - 12/31/19 and 1/1/20 - 12/31/20 — All NH Counties Combined

NUMBER OF HOMES FOR SALE VS. SOLD VS. PENDED (JAN. 2020 - DEC. 2020)

For Sale Sold

300

Pended

250 227

200

215

206

200

242

237

205

199

189

183

176 154

150

100

89

65

60

57

50

84

46

36

31 14

0

19

1/20

18

17

16

2/20

3/20

14

19

19

4/20

5/20

45

6/20

49

7/20

52

8/20

72

9/20

Source: Trendgraphix utilizing NNEREN data 1/1/2020 - 12/31/2020 — All NH Counties Combined

30

88

57

56

10/20

11/20

12/20


LUXURY REPORT $1MM+ NEW HAMPSHIRE

TOTAL SALES IN $

TOTAL SALES IN UNITS

(JAN. 2020 - DEC. 2020)

(JAN. 2020 - DEC. 2020)

74.3M

47

95

194M

78.9M

48

129.9M 77

97

FSSIR

COMPETITOR 1

185.7M

COMPETITOR 2

COMPETITOR 3

COMPETITOR 4

*Source: Trendgraphix Data - 1/1/20 - 12/31/20 — All VT & NH Counties Combined


SOUTHERN VERMONT

CHAMPLAIN VALLEY

LAKE WINNIPESAUKEE REGION

Mount Snow: 802.464.1200 Stratton: 802.297.1100 Manchester: 802.362.4551

Middlebury: 802.388.1000

Meredith: 603.677.7012

Okemo: 802.228.4537

NORTHEAST KINGDOM

CENTRAL VERMONT Rutland: 802.774.7007 Stowe: 802.253.7267

South Burlington: 802.864.0541

St. Johnsbury: 802.751.7582

UPPER VALLEY Fairlee: 802.333.4701 Hanover: 603.643.6070

SOUTHERN NEW HAMPSHIRE LAKE SUNAPEE REGION

Bedford: 603.413.7600

New London: 603.526.4050

MONADNOCK REGION Peterborough 603.924.3321

FourSeasonsSIR.com Each Office is Independently Owned and Operated


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