First Half 2020 Luxury Market Report

Luxury Market Report

F IRST H AL F 2020

LUXURY MARKET OVERVIEW FIRST HALF 2020

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. This approach provides you with more detailed information so that you can make an informed real estate buying decision no matter the luxury market you are looking in.

Four Seasons Sotheby’s International Realty is the leader in the Luxury Market with 43% more properties sold at the $600K+ level and 28% 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 throughout the beautiful states of Vermont and New Hampshire.

Staige Davis - CEO

*Source: Trendgraphix Data - 1/1/20 - 6/30/20 - All VT & NH Counties Combined

MLS#4737683

Hot Start, Cold Middle, Hot Restart...

The Luxury Market was dramatically impacted by COVID-19 during the First Half of 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 back to a torrid pace. As we are writing this in early August, we can report that we are back on track to meet, and possibly exceed, our annual projections.

Activity was mixed through June. Vermont’s regulations were far more stringent than New Hampshire’s. Total properties sold decreased 4% for homes over $600k but were up 8% for homes over $1MM in the two states combined. Additionally, the Average Sale Price increased slightly by 1% for properties over $600K but decreased 3% for $1MM+ properties. Lastly, Average Days on Market decreased for listings over $600K by 10% and increased slightly by 2% for all $1MM+ properties sold.

New Hampshire New Hampshire exhibited a strong luxury market with the number of properties sold over $600K reflecting a 2% increase with the average sale pricing also increasing 2%. For listings over $1MM, the number of properties sold increased 8% but the average selling price decreased 8%.

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 lack of inventory was the biggest impediment, resulting in the number of properties sold over $600K to decrease by 19%, however, the average sale price increased 10%. The bright spot was in transactions over $1MM, the number of properties sold increased 7%, while the average sale price increased 16%.

Reassessing Options There is no question that the Luxury Market is bouncing back in a strong way since the initial impact of COVID-19.

Demand is far outpacing supply. We have had multiple transactions completed in both states without the buyers ever having set foot in the property they purchased until after it had closed.

The underlying dynamics are many; Covid-19 has provided buyers with an opportunity to reassess where they would prefer to raise their families so they are taking a hard look at the healthy lifestyle New Hampshire and Vermont can provide together with easy access to 3 major metropolitan areas. Additionally, many companies are re-evaluating their work from home procedures which gives employees far more options as to where they can live, financial markets have rebounded dramatically, and interest rates remain at record lows, even for jumbo loans.

The lack of homes for sale remains a major impediment for many buyers and it is very difficult to predict beyond the Fall marketplace what may happen, but there is no question that now is one of the most active real estate markets we have ever seen.

Give us a call today, we’ll be happy to help you assess your opportunities! *Source: Trendgraphix Data - 1/1/20 - 6/30/20 All VT & NH Counties Combined

LUXURY REPORT $600K+ VT & NH COMBINED

FIRST HALF 2019

FIRST HALF 2020

% CHANGE

849

818

4%

$914,303

$924,749

1%

126

114

10%

NUMBER OF PROPERTIES SOLD AVERAGE SALE PRICE AVERAGE DAYS ON MARKET

Source: NNEREN 1/1/19 - 6/30/19 and 1/1/20 - 6/30/20 — All VT & NH Counties Combined

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

For Sale Sold

1500

Pended

1481

1438 1355

1345 1278

1236

1200

900

600

412

300

297 159

130

0

103 75

1/20

149 88

2/20

134 134

3/20

140

4/20

142

5/20

Source: Trendgraphix utilizing NNEREN data 1/1/2020 - 6/30/2020 — All VT & NH Counties Combined

248

6/20

LUXURY REPORT $600K+ VT & NH COMBINED

TOTAL SALES IN $

TOTAL SALES IN UNITS

(JAN. 2020 - JUN. 2020)

(JAN. 2020 - JUN. 2020)

78M

62

141 78

154.6M

67.4M

81

83M

98

FSSIR

COMPETITOR 1

COMPETITOR 2

COMPETITOR 3

87.6M

COMPETITOR 4

*Source: Trendgraphix Data - 1/1/20 - 6/30/20 — All VT & NH Counties Combined

MLS#4798489

MLS#4800079

LUXURY REPORT $1MM+ VT & NH COMBINED

FIRST HALF 2019

FIRST HALF 2020

% CHANGE

167

180

8%

$1,663,224

$1,618,899

3%

135

138

2%

NUMBER OF PROPERTIES SOLD AVERAGE SALE PRICE AVERAGE DAYS ON MARKET

Source: NNEREN 1/1/19 - 6/30/19 and 1/1/20 - 6/30/20 — All VT & NH Counties Combined

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

For Sale

600

Sold Pended 520

450

483

466

458

450 429

300

150 96 68 24

0

1/20

28

26

2/20

40 21

26

3/20

23

4/20

30

26

5/20

Source: Trendgraphix utilizing NNEREN data 1/1/2020 - 6/30/2020 — All VT & NH Counties Combined

59

6/20

LUXURY REPORT $1MM+ VT & NH COMBINED

TOTAL SALES IN $

TOTAL SALES IN UNITS

(JAN. 2020 - JUN. 2020)

(JAN. 2020 - JUN. 2020)

26.6M

18

79.5M

34.4M

41

23

43.4M

25

57M

32

FSSIR

COMPETITOR 1

COMPETITOR 2

COMPETITOR 3

*Source: Trendgraphix Data - 1/1/20 - 6/30/20 — All VT & NH Counties Combined

MLS#4798209

MLS#4805310

COMPETITOR 4

LUXURY REPORT $600K+ VERMONT

FIRST HALF 2019

FIRST HALF 2020

% CHANGE

225

183

19%

$862,619

$952,123

10%

199

196

2%

NUMBER OF PROPERTIES SOLD AVERAGE SALE PRICE AVERAGE DAYS ON MARKET

Source: NNEREN 1/1/19 - 6/30/19 and 1/1/20 - 6/30/20 — All VT Counties Combined

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

For Sale Sold

700

Pended

660

597

593

598

607

592

525

350

175 110 68 30

0

1/20

26

37

2/20

26

29

3/20

27

25

4/20

30

27

5/20

Source: Trendgraphix utilizing NNEREN data 1/1/2020 - 6/30/2020 — All VT Counties Combined

47

6/20

LUXURY REPORT $600K+ VERMONT

TOTAL SALES IN $

TOTAL SALES IN UNITS

(JAN. 2020 - JUN. 2020)

(JAN. 2020 - JUN. 2020)

18.5M

19 18.4M

20

74

76.5M 23.6M

21

56.6M

58

FSSIR

COMPETITOR 1

COMPETITOR 2

COMPETITOR 3

*Source: Trendgraphix Data - 1/1/20 - 6/30/20 — All VT & NH Counties Combined

MLS#4801260

MLS#4797874

COMPETITOR 4

LUXURY REPORT $1MM+ VERMONT

FIRST HALF 2019

FIRST HALF 2020

42

45

7%

$1,386,794

$1,603,104

16%

204

269

32%

NUMBER OF PROPERTIES SOLD AVERAGE SALE PRICE AVERAGE DAYS ON MARKET

% CHANGE

Source: NNEREN 1/1/19 - 6/30/19 and 1/1/20 - 6/30/20 — All VT Counties Combined

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

For Sale Sold

300

Pended 256

225

228

225

223

234

226

150

75

33

0

7

1/20

3

8

2/20

4

7

3/20

9

9

4/20

9

18

5/20

Source: Trendgraphix utilizing NNEREN data 1/1/2020 - 6/30/2020 — All VT Counties Combined

7

13

6/20

LUXURY REPORT $1MM+ VERMONT

TOTAL SALES IN $

TOTAL SALES IN UNITS

(JAN. 2020 - JUN. 2020)

(JAN. 2020 - JUN. 2020)

6

7.1M

9

19.1M

22

37.6M

15M

10

23.1M

13

FSSIR

COMPETITOR 1

COMPETITOR 2

COMPETITOR 3

COMPETITOR 4

*Source: Trendgraphix Data - 1/1/20 - 6/30/20 — All VT & NH Counties Combined

MLS#4762661

MLS#4782008

LUXURY REPORT $600K+ NEW HAMPSHIRE

FIRST HALF 2019

FIRST HALF 2020

624

635

2%

$932,938

$916,859

2%

100

90

10%

NUMBER OF PROPERTIES SOLD AVERAGE SALE PRICE AVERAGE DAYS ON MARKET

% CHANGE

Source: NNEREN 1/1/19 - 6/30/19 and 1/1/20 - 6/30/20 — All NH Counties Combined

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

For Sale Sold

700

699

Pended

714

783

766

634

600

604

500

400

300

291 216

200

100

0

116

94 66

1/20

114

60

2/20

106

101

3/20

101

4/20

109

5/20

Source: Trendgraphix utilizing NNEREN data 1/1/2020 - 6/30/2020 — All NH Counties Combined

193

6/20

LUXURY REPORT $600K+ NEW HAMPSHIRE

TOTAL SALES IN $

TOTAL SALES IN UNITS

(JAN. 2020 - JUN. 2020)

(JAN. 2020 - JUN. 2020)

62

78M

89

80.6M

67 78.1M

81 76

83M 65.1M

FSSIR

COMPETITOR 1

COMPETITOR 2

COMPETITOR 3

COMPETITOR 4

*Source: Trendgraphix Data - 1/1/20 - 6/30/20 — All VT & NH Counties Combined

MLS#4793364

MLS#4795644

LUXURY REPORT $1MM+ NEW HAMPSHIRE

FIRST HALF 2019

FIRST HALF 2020

% CHANGE

125

135

8%

$1,756,105

$1,624,164

8%

111

94

15%

NUMBER OF PROPERTIES SOLD AVERAGE SALE PRICE AVERAGE DAYS ON MARKET

Source: NNEREN 1/1/19 - 6/30/19 and 1/1/20 - 6/30/20 — All NH Counties Combined

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

For Sale Sold

250

Pended

237 227 215

200

206

200 189

150

100

62

50

46 31

0

13

14

1/20

18 19 10

17

10

2/20

16

3/20

14

4/20

19

19

5/20

Source: Trendgraphix utilizing NNEREN data 1/1/2020 - 6/30/2020 — All NH Counties Combined

44

6/20

LUXURY REPORT $1MM+ NEW HAMPSHIRE

TOTAL SALES IN $

TOTAL SALES IN UNITS

(JAN. 2020 - JUN. 2020)

(JAN. 2020 - JUN. 2020)

25.5M

18

57M

32 41.9M

19

25

21

FSSIR

32.3M

COMPETITOR 1

COMPETITOR 2

COMPETITOR 3

43.4M

COMPETITOR 4

*Source: Trendgraphix Data - 1/1/20 - 6/30/20 — All VT & NH Counties Combined

MLS#4799263

MLS#4741955

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: 802.864.0541 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

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