First-time and Move-up Buyers Fuel Overall Market, Indicating a Promising Outlook for Remainder of 2016

RE/MAX INTEGRA, New England launched its 2016 New England Luxury Coastal Report, revealing solid growth in single-family luxury home sales throughout the second quarter of 2016. In the featured markets of Coastal Maine, Cape Cod, South Shore, MA, North Shore, MA, Coastal New Hampshire and Lake Winnipesaukee, more than two-thirds of the communities are reporting an increase in the volume of single-family homes sold year over year.

During the second quarter of 2016, the luxury, coastal New England housing market experienced significant growth, which can be attributed to a few notable trends. Attracted to the appeal of waterfront views, mild weather, pristine shorelines and bustling retail in these regions, first-time and move-up buyers continue to fuel the overall market. Homebuyers looking to start a family, purchase a vacation home or settle into retirement close to the water are also driving the rising sales. More than 50% of the communities in these markets are reporting an increase in median price.

“The luxury, coastal home market shows significant promise as we continue into the summer months,” said Dan Breault, Executive Vice President and Regional Director at RE/MAX INTEGRA, New England. “A general rise in the volume of homes sold combined with a decrease in the average number of days on market over the past year signifies an increase in market demand.”

The allure of waterfront views and tight-knit communities in coastal Maine and New Hampshire has strengthened the second home market for luxury single-family homes. Additionally, an uptick in investors and job opportunities, combined with low interest rates, continues to fuel the luxury market in Massachusetts. Some of the key takeaways include:

• Coastal Maine: In the past two years this general region has become a likely option for first-time and move-up buyers, in addition to luxury homeowners interested in re-locating to New England’s coastline. Nearly all towns in the Coastal Maine region have seen an increase in median price for luxury single-family homes. In Portland specifically, the average number of days on market has dropped by more than 80% year over year, now reporting an average of 28 days. These trends show no signs of slowing down for the rest of the summer.
• Cape Cod, MA: Currently in this popular region of Massachusetts, investors and home “flippers” are dominating a share of the market, making competition fierce and demand high. For example, in Wellfleet the median price of a luxury single-family home has risen by more than 40% in the past year, jumping from $1,250,000 to $1,850,000.
• South Shore, MA: A rise in job opportunities and numerous transportation options has caused an upswing in real estate demand in this area. Currently a seller’s market, it’s driven by a combination of first-time and move-up homebuyers overall. The median price point for single-family homes in Cohasset increased year over year to $1,225,750.
• North Shore, MA: Like its Massachusetts counterpart, easily accessible transportation and increasing employment opportunities continue to attract homeowners to this area. Combined with low interest rates, this has made the general region attractive to first-time and move-up buyers.The median price point for luxury single-family homes has increased year over year by more than 40% in Rockport, to $1,475,000, and Beverly, to $1,521,720.
• Coastal New Hampshire: This region’s prime location between Boston and Portland has made it a strong contender for luxury oceanfront homes and second-time buyers. The average number of days on market for luxury single-family homes has decreased throughout the entire region in the past year, most notably in Portsmouth by more than 60%, dropping from 213 days to 73 days.
• Lake Winnipesaukee, NH: Residential home values in this popular lake area are rising, particularly in the waterfront and second home markets. The median luxury single-family home prices for Gilford and Laconia have increased by more than 45% year over year, to $2,130,000 and $1,850,000 respectively. With an uptick in commercial investment, experts forecast that the Lake Winnipesaukee area will continue to thrive.

An overall increase in volume of single-family homes sold year over year, combined with a decrease in the average days on market, as found through the regions reported and surveyed, indicate that the luxury market remains strong.

For the full 2016 New England Luxury Coastal Market Report, including data and pricing chart, click here.

The report also launched with an innovative interactive microsite, highlighting details on the overall market trends along the New England coastline. Key data and sharable social media graphics on the featured markets, including Coastal Maine, Cape Cod, South Shore, MA, North Shore, MA, Coastal New Hampshire and Lake Winnipesaukee, can also be found by visiting http://remaxnecoastalreport.com/.

About RE/MAX INTEGRA and RE/MAX INTEGRA, New England:

Since its inception in 1985, RE/MAX INTEGRA, New England has grown to over 200 offices and nearly 2,700 Sales Associates throughout Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont, providing franchised and commercial real estate services to its franchisees and their real estate professionals.

For more information about RE/MAX INTEGRA, visit www.remaxintegra.com.