2022 Year In Review

Introduction

Tate & Foss Sotheby’s International Realty is proud to present our latest edition of Seacoast Market Watch. We offer this unique publication to keep our clients informed, thoroughly educated, and a step ahead in this increasingly complex market.

To be sure, our company had many impressive sales accomplishments in 2022. We could devote pages to the achievements of the Team, the Brand, and our ongoing efforts to be the best at what we do. But our focus is and must always be on putting clients first now and into the future. We continue to seek the most effective and advanced ways to market property as well as help buyers successfully attain their goals.

Looking at the Seacoast, we recognize market forces have brought a high degree of uncertainty to local real estate. Inflation, lack of inventory, the stock market, cascading layoffs and rising interest rates serve to make the business climate more challenging. Yet the luxury segment has been remarkably resilient. There were 10 monthly volume records set in 2022. Sales greater than $2 million dollars became routine, leaving Seacoast consumers to wonder how high can prices go.

Looking ahead, the news is mixed. Inventory is on the rise and with it more choices for consumers. But there are now fewer active buyers, and they are feeling less pressure to buy because there is less competition. Consequently, sellers are likely to face longer days on the market. Interest rates, though still high, have slipped back below 7% for a 30-year fixed mortgage, bringing some relief to beleaguered buyers. Luxury buyers, in fact, will be helped by conforming loan limits for Freddie Mac and Fannie Mae mortgages—now for the first time more than $1 million dollars.

Playing directly into the hands of Granite State luxury sellers is the new Massachusetts Millionaires 4% surcharge tax on income exceeding $1 million dollars. This has created a whole new wave of buyers coming to New Hampshire where there is no income or sales tax.

In conclusion, we may see more downward pressure on sales prices and longer marketing times as the year progresses. But consumer confidence remains high and demand, especially in the luxury segment, should remain consistent.

We live in a special part of the world and the quest to buy property here will always be strong at the end of the day. Whatever lies ahead, Tate & Foss Sotheby’s International Realty is ready to offer exceptional service, always focused on helping our clients achieve their goals.

Warmly, Anthony Jalbert

Principal Broker

Tate & Foss Sotheby’s International Realty

Seacoast Overview

Inflation, inventory, interest rates. All three played important roles as 2022 unfolded in the 13 Sample Seacoast Towns—and beyond. The year began with interest rates near 3% for a 30-year fixed mortgage, just a slight uptick from the low point of 2.65% in January 2021. Bargain basement financing fueled high demand and multiple offer scenarios were commonplace across all price points. But by September 2022, rates topped 6%, and single-family sales dropped 13.9% through the end of the month. Rates flirted around the 7% mark at year’s end.

Meanwhile, inventory set records for monthly lows in each of the year’s first four months. March and April, in fact, recorded their fewest sales ever. Yet despite rising interest rates, median sale prices continued to climb. As affordability declined, days on market lengthened. Inevitably, June saw an-ever-so slight increase in inventory. A transition to a more balanced market was underway. Old-fashioned negotiation became more commonplace.

Against this background—and a declining stock market—multi-million-dollar sales soared to record levels. Despite all odds, monthly volume records for million-dollar-plus transactions were posted in every month except July and September including an all-time monthly mark of 26 total million-dollar sales in June. Topping the new volume records was a $25 million dollar December sale of an oceanfront property in a prime Straws Point, Rye location. The sale price is believed to be the largest for a single-family home ever in New Hampshire.

Tate & Foss Sotheby’s International Realty found itself, as always, a significant player in this amazing market segment. We posted the top sales in New Castle, Portsmouth, and Rye Beach, including the year’s biggest non-waterfront sale in coastal New Hampshire at $6.4 million dollars. The company also had the second highest sale in Seabrook, Exeter, Dover, and New Durham. Million-dollar sales were so prevalent that only Lee, Northwood, and Somersworth did not record one. Fifteen of 30 towns had sales of more than $2 million dollars with Rye Beach, as usual, having the highest median sale price—$2.65 million.

Across the river in Maine, all six coastal communities from Kittery to Kennebunkport had sales of more than $2 million dollars with the largest coming in Kennebunkport at $6.9 million. By contrast, the Berwicks remained one of the area’s most affordable options with a median sale price of $438,000. Despite overall market volatility, Rochester, Dover, Hampton, and Portsmouth were the most active markets with well over 300 transactions in each. Greenland proved another hot spot with the area’s slimmest average days on market: 12.

In sum, sales were off 8% for the year in the 13 Sample Seacoast Towns while the median sale price rose 19% to $750,000 and the average sale price was even higher at $943,628, up 11%.

Amidst all the varied and complex market forces at play at year’s end, there was some good news. December month-over-month sales remained steady from a year ago, for the first time since June. It seems 2023 has potential to be more challenging than what we have recently experienced. But, as the saying goes, under all is the land. And there’s no denying that the Seacoast is and always will be a very special part of the world to call home.

NUMBER OF SALES

DAYS ON MARKET

AVERAGE PRICE MEDIAN PRICE HIGHEST PRICE

Greenland 2022 2021 Change 57 12 $838,150 $720,000 $3,250,000

63 28 $625,094 $539,000 $1,550,000

Tax Rate: $18.09

-10% -58% 34% 34% 110%

NUMBER OF SALES DAYS ON MARKET

AVERAGE PRICE MEDIAN PRICE HIGHEST PRICE

New Castle 2022 2021 Change 11 104 $2,225,455 $1,795,000 $5,080,000

15 17 $2,005,557 $1,350,000 $5,676,350

Tax Rate: $4.50

-27% 505% 11% 33% -11%

Change

NUMBER OF SALES DAYS ON MARKET

AVERAGE PRICE MEDIAN PRICE HIGHEST PRICE

Newington 2022 2021 4 18 $912,500 $950,000 $1,300,000

9 15 $992,833 $902,000 $2,250,000

Tax Rate: $9.88

-56% 21% -8% 5% -42%

NUMBER OF SALES DAYS ON MARKET AVERAGE PRICE MEDIAN PRICE HIGHEST PRICE

Portsmouth 2022 2021 333 27 $824,740 $695,000 $4,950,000

382 31 $749,105 $596,000 $4,650,000

Tax Rate: $15.20

Change

-13% -12% 10% 17% 6%

Change

NUMBER OF SALES DAYS ON MARKET

AVERAGE PRICE MEDIAN PRICE HIGHEST PRICE

Rye 2022 2021 87 24 $1,371,207 $960,000 $25,000,000

61 40 $1,223,049 $1,000,000 $4,500,000

Tax Rate: $7.39

43% -39% 12% -4% 456%

T&F Significant Sale: Greenland NH I $1,550,000

NUMBER OF SALES DAYS ON MARKET AVERAGE PRICE MEDIAN PRICE HIGHEST PRICE

Rye Beach 2022 2021 8 14 $3,225,625 $2,650,000 $6,400,000

9 38 $2,090,000 $2,350,000 $3,848,000

Tax Rate: $7.27

Change

-11% -62% 54% 13% 66%

Highest Sale in Rye Beach

NUMBER OF SALES

DAYS ON MARKET

AVERAGE PRICE MEDIAN PRICE HIGHEST PRICE

Hampton 2022 2021 Change 342 37 $628,771 $570,000 $4,900,000

365 27 $521,831 $450,000 $5,500,000

Tax Rate: $15.84

-6% 36% 20% 27% -11%

NUMBER OF SALES DAYS ON MARKET

AVERAGE PRICE MEDIAN PRICE HIGHEST PRICE

Hampton Falls 2022 2021 Change 25 23 $999,394 $985,000 $2,450,000

35 52 $861,030 $843,000 $2,250,000

Tax Rate: $20.99

-29% -55% 16% 17% 9%

Change

NUMBER OF SALES DAYS ON MARKET

AVERAGE PRICE MEDIAN PRICE HIGHEST PRICE

North Hampton 2022 2021 68 25 $1,070,793 $902,000 $3,000,000

62 37 $959,953 $633,750 $3,500,000

Tax Rate: $19.39

10% -32% 12% 42% -14%

NUMBER OF SALES DAYS ON MARKET

AVERAGE PRICE MEDIAN PRICE HIGHEST PRICE

Seabrook 2022 2021 71 29 $716,030 $490,000 $4,600,000

86 27 $547,222 $496,500 $2,300,000

Tax Rate: $13.25

Change

-17% 4% 31% -1% 100%

Change

NUMBER OF SALES DAYS ON MARKET

AVERAGE PRICE MEDIAN PRICE HIGHEST PRICE

South Hampton 2022 2021 9 14 $1,004,000 $960,000 $2,000,000

10 33 $670,350 $630,000 $1,125,000

Tax Rate: $19.86

-10% -57% 50% 52% 78%

Highest Price in South Hampton

NUMBER OF SALES DAYS ON MARKET

AVERAGE PRICE MEDIAN PRICE HIGHEST PRICE

Brentwood 2022 2021 Change 91 28 $597,090 $585,000 $1,250,000

90 22 $553,408 $549,900 $889,000

Tax Rate: $22.15

1% 28% 8% 6% 41%

NUMBER OF SALES DAYS ON MARKET

AVERAGE PRICE MEDIAN PRICE HIGHEST PRICE

East Kingston 2022 2021 Change 17 24 $840,453 $680,000 $3,400,000

43 16 $521,742 $476,000 $1,125,000

Tax Rate: $22.80

-60% 47% 61% 43% 202%

Change

NUMBER OF SALES DAYS ON MARKET

AVERAGE PRICE MEDIAN PRICE HIGHEST PRICE

Exeter 2022 2021 237 20 $515,271 $499,900 $1,200,000

314 32 $483,184 $450,500 $1,725,000

Tax Rate: $24.75

-25% -35% 7% 11% -30%

NUMBER OF SALES DAYS ON MARKET AVERAGE PRICE MEDIAN PRICE HIGHEST PRICE

Kensington 2022 2021 20 54 $693,300 $633,000 $1,360,000

18 44 $696,989 $617,500 $1,257,500

Tax Rate: $19.86

Change

11% 21% -1% 3% 8%

Change

NUMBER OF SALES DAYS ON MARKET

AVERAGE PRICE MEDIAN PRICE HIGHEST PRICE

Newfields 2022 2021 19 16 $675,589 $649,900 $1,276,500

31 22 $687,048 $690,000 $1,200,000

Tax Rate: $20.96

-39% -25% -2% -6% 6%

NUMBER OF SALES DAYS ON MARKET AVERAGE PRICE MEDIAN PRICE HIGHEST PRICE

Stratham 2022 2021 126 21 $659,520 $613,750 $1,845,000

176 23 $580,515 $575,750 $1,375,000

Tax Rate: $18.71

Change

-28% -10% 14% 7% 34%

NUMBER OF SALES

DAYS ON MARKET

AVERAGE PRICE MEDIAN PRICE

HIGHEST PRICE

Dover 2022 2021 Change 369 20 $504,752 $415,000 $9,750,000

486 18 $440,608 $380,000 $3,750,000

Tax Rate: $19.84

-24% 15% 15% 9% 160%

NUMBER OF SALES DAYS ON MARKET

AVERAGE PRICE MEDIAN PRICE

HIGHEST PRICE

Rochester 2022 2021 Change 382 17 $340,505 $325,000 $2,100,000

519 22 $296,984 $290,000 $825,000

Tax Rate: $25.28

-26% -22% 15% 12% 155%

Change

NUMBER OF SALES DAYS ON MARKET

AVERAGE PRICE MEDIAN PRICE

HIGHEST PRICE

Rollinsford 2022 2021 22 26 $490,414 $422,500 $1,300,000

50 15 $357,366 $317,500 $990,000

Tax Rate: $14.87

-56% 73% 37% 39% 31%

NUMBER OF SALES DAYS ON MARKET

AVERAGE PRICE MEDIAN PRICE HIGHEST PRICE

Somersworth 2022 2021 158 22 $376,162 $365,000 $910,000

145 28 $327,289 $315,000 $535,000

Tax Rate: $28.09

Change

9% -22% 15% 16% 70%

NUMBER OF SALES

DAYS ON MARKET

AVERAGE PRICE MEDIAN PRICE HIGHEST PRICE

Durham 2022 2021 Change 64 21 $627,405 $575,500 $2,250,000

83 28 $618,411 $530,000 $2,300,000

Tax Rate: $29.04

-23% -25% 1% 9% -2%

NUMBER OF SALES DAYS ON MARKET AVERAGE PRICE MEDIAN PRICE HIGHEST PRICE

Lee 2022 2021 Change 41 17 $512,009 $510,000 $809,000

39 23 $504,179 $465,000 $1,400,000

Tax Rate: $21.72

5% -26% 2% 10% -42%

Change

NUMBER OF SALES DAYS ON MARKET

AVERAGE PRICE MEDIAN PRICE HIGHEST PRICE

Madbury 2022 2021 19 12 $630,357 $622,000 $1,025,000

22 17 $525,195 $467,500 $995,000

Tax Rate: $25.27

-14% -32% 20% 33% 3%

NUMBER OF SALES DAYS ON MARKET AVERAGE PRICE MEDIAN PRICE HIGHEST PRICE

Newmarket 2022 2021 110 17 $506,242 $498,500 $1,264,500

160 15 $408,450 $381,450 $1,295,000

Tax Rate: $26.99

Change

-31% 15% 24% 31% -2%

NUMBER OF SALES

DAYS ON MARKET

AVERAGE PRICE MEDIAN PRICE HIGHEST PRICE

Barrington 2022 2021 Change 106 15 $464,783 $432,500 $1,300,000

142 32 $397,784 $400,500 $960,000

Tax Rate: $19.85

-25% -55% 17% 8% 35%

NUMBER OF SALES DAYS ON MARKET AVERAGE PRICE MEDIAN PRICE HIGHEST PRICE

Northwood 2022 2021 Change 57 14 $391,227 $373.000 $737.500

91 23 $380,169 $370,000 $830,000

Tax Rate: $12.58

-37% -38% 3% 1% -11%

Change

NUMBER OF SALES DAYS ON MARKET

AVERAGE PRICE MEDIAN PRICE HIGHEST PRICE

Nottingham 2022 2021 76 28 $542,546 $540,075 $1,100,000

77 29 $458,368 $459,500 $795,000

Tax Rate: $19.11

-1% -5% 18% 18% 38%

NUMBER OF SALES DAYS ON MARKET AVERAGE PRICE MEDIAN PRICE HIGHEST PRICE

Strafford 2022 2021 58 11 $520,684 $451,450 $2,707,000

38 18 $384,626 $373,000 $742,500

Tax Rate: $17.13

Change

53% -41% 35% 21% 265%

NUMBER OF SALES DAYS ON MARKET AVERAGE PRICE MEDIAN PRICE HIGHEST PRICE

Berwick 2022 2021 Change 91 20 $416,450 $410,000 $980,000

114 17 $352,892 $327,250 $780,000

Tax Rate: $18.22

-20% 13% 18% 25% 26%

NUMBER OF SALES DAYS ON MARKET AVERAGE PRICE MEDIAN PRICE HIGHEST PRICE

Eliot 2022 2021 Change 72 15 $557,989 $507,295 $1,425,000

110 13 $498,702 $447,250 $1,430,000

Tax Rate: $13.50

-35% 9% 12% 13% 0%

Change

NUMBER OF SALES DAYS ON MARKET

AVERAGE PRICE MEDIAN PRICE HIGHEST PRICE

North Berwick 2022 2021 57 17 $406,924 $400,000 $960,000

61 15 $383,986 $350,000 $1,110,000

Tax Rate: $11.15

-7% 19% 6% 14% -14%

Days on Market in South Berwick

South Berwick 2022 2021 83 16 $449,897 $431,000 $855,000

Change

NUMBER OF SALES DAYS ON MARKET AVERAGE PRICE MEDIAN PRICE HIGHEST PRICE

91 22 $390.937 $380,000 $888,000

Tax Rate: $15.54

-9% -29% 15% 13% -4%

Number of Sales in Eliot

NUMBER OF SALES

DAYS ON MARKET

AVERAGE PRICE MEDIAN PRICE HIGHEST PRICE

Kennebunk 2022 2021 Change 267 31 $669,804 $570,000 $6,250,000

303 32 $596,863 $475,000 $3,662,500

Tax Rate: $14.60

-12% -2% 12% 20% 71%

NUMBER OF SALES DAYS ON MARKET AVERAGE PRICE MEDIAN PRICE HIGHEST PRICE

Kennebunkport 2022 2021 Change 85 40 $1,254,798 $850,000 $6,900,000

109 58 $1,120,275 $851,000 $7,500,000

Tax Rate: $6.00

-22% -31% 12% 0% -8%

Change

NUMBER OF SALES DAYS ON MARKET

AVERAGE PRICE MEDIAN PRICE HIGHEST PRICE

Kittery 2022 2021 120 20 $665,783 $615,000 $3,000,000

173 29 $637,595 $500,000 $4,300,000

Tax Rate: $13.48

-31% -30% 4% 23% -30%

NUMBER OF SALES DAYS ON MARKET AVERAGE PRICE MEDIAN PRICE HIGHEST PRICE

Ogunquit 2022 2021 51 42 $880,926 $800,000 $2,250,000

86 33 $823,948 $632,000 $3,000,000

Tax Rate: $6.32

Change

-41% 29% 7% 27% -25%

Change

NUMBER OF SALES DAYS ON MARKET

AVERAGE PRICE MEDIAN PRICE HIGHEST PRICE

Wells 2022 2021 382 39 $495,068 $450,000 $3,300,000

488 38 $490,428 $420,000 $4,300,000

Tax Rate: $10.46

-22% 3% 1% 7% -23%

NUMBER OF SALES DAYS ON MARKET AVERAGE PRICE MEDIAN PRICE HIGHEST PRICE

York 2022 2021 248 28 $804,727 $640,000 $5,200,000

355 25 $738,215 $575,000 $5,749,140

Tax Rate: $8.55

Change

-30% 11% 9% 11% -10%

Highest Price in Kennebunk

Number of Sales in Ogunquit