First Half 2021 Luxury Market Report - Vermont and New Hampshire

Luxury Market Report FIRST HALF 202 1

Luxury Market Introduction FIRST HALF 2021

Luxury is an Experience We are pleased to share our First Half 2020 Luxury Market Report covering both New Hampshire and Vermont. In this report you will find real estate trends for the Luxury Market which we define 2 ways; homes sold for $600K+ as well as homes sold over $1MM. Four Seasons Sotheby’s International Realty is the leader in the Luxury Market with 40% more properties sold at the $600K+ level and 55% more properties sold at the $1MM+ level than our next closest competitor in the two states combined.

These results are a direct consequence of the reach and power of our brand together with our ongoing commitment by our associates and staff to provide the highest level of service and expertise to both Buyers and Sellers alike.

It would be our privilege to service all of your real estate needs in this beautiful and scenic place we call home.

Alan DiStasio - Chief Executive Officer Laurie Mecier-Brochu - President *Source: Trendgraphix Data - 1/1/21 - 6/30/21 All VT & NH Counties Combined

Table of Contents Market Overview PAGE 4

$600K + VT & NH PAGE 6

$1MM + VT & NH PAGE 8

$600K + VT PAGE 10

$1MM + VT PAGE 12

$600K + NH PAGE 14

$1MM + NH PAGE 16

Market Overview FIRST HALF 2021

2020 2nd Half Recap As we reported a year ago in July, the Luxury Market was dramatically impacted by the pandemic during the first half of 2020. Throughout New Hampshire and Vermont, luxury sales were tepid through June. Sales over $1MM+ were up 10.5% over the same period in 2019, and Dollar Volume was up by 9.9%. However, most of the increase came in May and June once the pandemic-induced buying frenzy heated up.

The second half of the year was quite different. Total homes sold over $1MM+ were up 136.4%, and Dollar Volume was up 140.7% as the rate of sales increased exponentially. At the end of 2020, inventory shrank -18.7% vs. 2019, exacerbating what was already a tight listings market.

The story for homes priced over $650,000 was similar. The second half of the year resulted in Unit Sales up 114% and Dollar Volume 122.5% across the two states combined.

Interestingly enough, the Average Sale Price for homes over $1MM+ in the second half of 2021 increased only slightly (1.8%), despite the fevered sales pace. Home sales over $650,000 showed a similar trend with a slight increase of 4% year-over-year. We mention this because the Average Sale Price for all homes, when taken in total, was up nearly 23% year-over-year...the result of many buyers pursuing too few homes for sale in lower price categories. Clearly, there was less competition in the market’s luxury segment, which kept prices relatively stable despite the increased sell-through rates in both states.

Now to 2021 At the end of 2020, we tried to determine how 2021 might play out. The prevailing wisdom was that we would see a slight decrease in the rate of sales, believing that the sell-through rate could not possibly sustain itself. We were wrong.

New Hampshire Through June, New Hampshire’s luxury market continued its torrid pace. Unit Sales statewide for homes priced over $1MM+ were up 104.8% year over year through June, and Dollar Volume increased 99.2% during the same time frame.

All homes priced over $650,000 showed a 106.5% gain through June, and Dollar Volume also rose 108.7%.

Vermont It’s fair to say that it has been years since Vermont has seen this much activity in the market’s luxury segment. Through June, Vermont’s high-end market continued to build on 2020 with Unit Sales statewide for homes priced over $1MM+ up 150.3% year over year through June, and Dollar Volume up 139.9%. All homes priced over $650,000 showed a 175.9% gain through June, and Dollar Volume also rose 162.3%. All numbers which are practically unheard of.

Many of these sales were transacted in our Lake and Ski resort markets in both states. Millennials, in particular, continue to place a value on second-home ownership. Not just for the sake of a safe place in which to shelter, but because they have come to understand that a ski or lake home lifestyle can provide their family with experiences unlike any other.

Additionally, not every worker must go back to the office; hybrid work-from-home models are becoming de rigueur.

Some Buyers are willing to trade a longer commute 2 or 3-days a week in favor of living where they plan to recreate.

Interest rates continue to remain at historically low levels as well.

The Future We are starting to see a significant level of buyer fatigue. Many buyers have given up and stopped making offers or looking altogether. Others were priced out of the market as selling prices rose. Many buyers are becoming warier of asking prices. Unfortunately, we have started to notice a trend whereby sellers attempt to test the market by asking unrealistically high asking prices. One, in fact, literally doubled their asking price after having been provided a comparative market analysis that already included a covid “bump.”

In nearly all cases, sellers who maintain realistic asking prices, particularly in the resort markets, still experience significant buyer activity, those that don’t are sitting on the market. And the number of homes for sale, while growing, still lags demand. Currently, Months of Inventory for all homes over $650,000 is 3.6, a seller’s market. 5-8 months would indicate a balanced market, over 8 months a buyer’s market.

And then there is the specter of the Delta Variant rearing its ugly head. If any, it remains to be seen what impact this new variant will have in the second half of the year. Could there be a second run on homes in our markets? It, of course, remains to be seen.

As a result, we expect sell-through rates will continue to moderate throughout the balance of the year. Still, we certainly do not expect any significant correction in the foreseeable future.

Sincerely,

Alan J. DiStasio Chief Executive Officer

*Source: Trendgraphix Data - 1/1/21 - 6/30/21 - All VT & NH Counties Combined

Luxury Report: $600K+ VT & NH COMBINED

FIRST HALF 2020

FIRST HALF 2021

% CHANGE

743

1736

134%

$930,646

$942,846

1%

115

59

49%

NUMBER OF PROPERTIES SOLD AVERAGE SALE PRICE AVERAGE DAYS ON MARKE T

Source: NNEREN 1/1/20 - 6/30/20 and 1/1/21 - 6/30/21 — All VT & NH Counties Combined

Number of Homes For Sale vs. Sold vs. Pended (JAN. 2021 - JUN. 2021)

FOR SALE SOLD

1200

PENDED

1093

1000

941 844

800

763

732

724

600 520

491 421

400

410

286

278

200

0

194

1/21

185

2/21

285

3/21

368

4/21

444

5/21

Source: Trendgraphix utilizing NNEREN data 1/1/2021 - 6/30/2021 — All VT & NH Counties Combined

550

6/21

Luxury Report: $600K VT & NH COMBINED

Total Sales in $

Total Sales in Units

(JAN. 2021 - JUN. 2021)

(JAN. 2021 - JUN. 2021)

146M

146

309

149 170

FSSIR

141M

219

COMPETITOR 1

341M

124M

COMPETITOR 2

COMPETITOR 3

183M

COMPETITOR 4

*Source: Trendgraphix Data - 1/1/21 - 6/30/21 — All VT & NH Counties Combined

Luxury Report: $1MM+ VT & NH COMBINED

FIRST HALF 2020

FIRST HALF 2021

% CHANGE

169

389

130%

$1,612,023

$1,670,648

4%

138

83

40%

NUMBER OF PROPERTIES SOLD AVERAGE SALE PRICE AVERAGE DAYS ON MARKE T

Source: NNEREN 1/1/20 - 6/30/20 and 1/1/21 - 6/30/21 — All VT & NH Counties Combined

Number of Homes For Sale vs. Sold vs. Pended (JAN. 2021 - JUN. 2021)

FOR SALE SOLD

400

402

PENDED 361

350

338

327

325

299

300

250

200

150

109

100

90

79 60

50

0

131

120

43

1/21

40

2/21

62

3/21

87

4/21

102

5/21

Source: Trendgraphix utilizing NNEREN data 1/1/2021 - 6/30/2021 — All VT & NH Counties Combined

125

6/21

Luxury Report: $1MM+ VT & NH COMBINED

Total Sales in $

Total Sales in Units

(JAN. 2021 - JUN. 2021)

(JAN. 2021 - JUN. 2021)

28 32

47M 56M

113

191M

72M

42

84M

44

FSSIR

COMPETITOR 1

COMPETITOR 2

COMPETITOR 3

COMPETITOR 4

*Source: Trendgraphix Data - 1/1/21 - 6/30/21 — All VT & NH Counties Combined

Luxury Report: $600K+ VERMONT

FIRST HALF 2020

FIRST HALF 2021

% CHANGE

162

514

217%

$942,701

$990,960

5%

205

97

53%

NUMBER OF PROPERTIES SOLD AVERAGE SALE PRICE AVERAGE DAYS ON MARKE T

Source: NNEREN 1/1/20 - 6/30/20 and 1/1/21 - 6/30/21 — All VT Counties Combined

Number of Homes For Sale vs. Sold vs. Pended (JAN. 2021 - JUN. 2021)

FOR SALE SOLD

500

PENDED 457

450 419

400

401

393

387 360

350 300 250 200 150 133

127

100

98

129

117

97

50 0

49

1/21

52

2/21

89

3/21

126

4/21

121

5/21

Source: Trendgraphix utilizing NNEREN data 1/1/2021 - 6/30/2021 — All VT Counties Combined

155

6/21

Luxury Report: $600K+ VERMONT

Total Sales in $

Total Sales in Units

(JAN. 2021 - JUN. 2021)

(JAN. 2021 - JUN. 2021)

40

60M

42

189

61

53M

199M

49M 122

FSSIR

112M

COMPETITOR 1

COMPETITOR 2

COMPETITOR 3

*Source: Trendgraphix Data - 1/1/21 - 6/30/21 — All VT Counties Combined

COMPETITOR 4

Luxury Report: $1MM+ VERMONT

FIRST HALF 2020

FIRST HALF 2021

% CHANGE

40

138

245%

$1,572,117

$1,673,573

286

115

NUMBER OF PROPERTIES SOLD AVERAGE SALE PRICE AVERAGE DAYS ON MARKE T

7% 60%

Source: NNEREN 1/1/20 - 6/30/20 and 1/1/21 - 6/30/21 — All VT Counties Combined

Number of Homes For Sale vs. Sold vs. Pended (JAN. 2021 - JUN. 2021)

FOR SALE SOLD

225

PENDED

200

175

194 185

179

176

176 158

150

125

100

75

50 42

25

0

31

26

23 18

1/21

38 22

16

2/21

22

3/21

31

4/21

29

5/21

Source: Trendgraphix utilizing NNEREN data 1/1/2021 - 6/30/2021 — All VT Counties Combined

42

6/21

Luxury Report: $1MM+ VERMONT

Total Sales in $

Total Sales in Units

(JAN. 2021 - JUN. 2021)

(JAN. 2021 - JUN. 2021)

19

35M

60

20 21

36M

25

FSSIR

COMPETITOR 1

100M

44M

COMPETITOR 2

COMPETITOR 3

39M

COMPETITOR 4

*Source: Trendgraphix Data - 1/1/21 - 6/30/21 — All VT Counties Combined

Luxury Report: $600K+ NEW HAMPSHIRE

FIRST HALF 2020

FIRST HALF 2021

% CHANGE

581

1222

110%

$927,284

$922,608

.5%

90

44

51%

NUMBER OF PROPERTIES SOLD AVERAGE SALE PRICE AVERAGE DAYS ON MARKE T

Source: NNEREN 1/1/20 - 6/30/20 and 1/1/21 - 6/30/21 — All NH Counties Combined

Number of Homes For Sale vs. Sold vs. Pended (JAN. 2021 - JUN. 2021)

FOR SALE SOLD

650

PENDED

601

600 550 498

500 450

430

400 350

373

342

334

345

319

300 276

275

250 200 180

172

150 100 50 0

136

1/21

124

2/21

187

3/21

227

4/21

304

5/21

Source: Trendgraphix utilizing NNEREN data 1/1/2021 - 6/30/2021 — All NH Counties Combined

372

6/21

Luxury Report: $600K+ NEW HAMPSHIRE

Total Sales in $

Total Sales in Units

(JAN. 2021 - JUN. 2021)

(JAN. 2021 - JUN. 2021)

129

145M

216

133

181M

124M 144

FSSIR

155M

157

COMPETITOR 1

123M

COMPETITOR 2

COMPETITOR 3

COMPETITOR 4

*Source: Trendgraphix Data - 1/1/21 - 6/30/21 — All NH Counties Combined

Luxury Report: $1MM+ NEW HAMPSHIRE

FIRST HALF 2020

FIRST HALF 2021

% CHANGE

129

251

95%

$1,624,397

$1,669,039

3%

93

65

30%

NUMBER OF PROPERTIES SOLD AVERAGE SALE PRICE AVERAGE DAYS ON MARKE T

Source: NNEREN 1/1/20 - 6/30/20 and 1/1/21 - 6/30/21 — All NH Counties Combined

Number of Homes For Sale vs. Sold vs. Pended (JAN. 2021 - JUN. 2021)

FOR SALE SOLD

200

PENDED

191

180 163

160 147

140

136

133

129

120 100 93

80

76

60

61

59 50

40 34

20 0

21

1/21

22

2/21

37

3/21

49

4/21

66

5/21

Source: Trendgraphix utilizing NNEREN data 1/1/2021 - 6/30/2021 — All NH Counties Combined

74

6/21

Luxury Report: $1MM+ NEW HAMPSHIRE

Total Sales in $

Total Sales in Units

(JAN. 2021 - JUN. 2021)

(JAN. 2021 - JUN. 2021)

27 28 39

FSSIR

48M

53

49M

44

COMPETITOR 1

91M

COMPETITOR 2

68M

84M

COMPETITOR 3

COMPETITOR 4

*Source: Trendgraphix Data - 1/1/21 - 6/30/21 — All NH Counties Combined

SOUTHERN VERMONT

NORTHEAST KINGDOM

UPPER VALLEY

Mount Snow: 802.464.1200 Stratton: 802.297.1100 Manchester: 802.362.4551 Okemo: 802.228.4537

St. Johnsbury: 802.751.7582

Fairlee: 802.333.4701 Hanover: 603.643.6070

CENTRAL VERMONT Killington: 802.746.4203 Rutland: 802.864.0541 Stowe: 802.253.7267

LAKE SUNAPEE REGION New London: 603.526.4050

LAKE WINNIPESAUKEE REGION Meredith: 603.677.7012

SOUTHERN NEW HAMPSHIRE Bedford: 603.413.7600

MONADNOCK REGION Peterborough 603.924.3321

CHAMPLAIN VALLEY Middlebury: 802.388.1000 South Burlington: 802.864.0541

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