Homes in the North Shore are increasingly spending fewer days on the market – suggesting highly limited inventory. In today’s newly- released RE/MAX INTEGRA, New England 2017 Luxury Market Report, findings highlight high-growth regions and pricing and volume trends in local luxury real estate markets. Overall, a prominent theme in this year’s report is that young (Millennial and Gen-X) luxury home buyers desire modest yet modern homes with equal proximity to both town center amenities and nature.
Specific to the North Shore market, the report found:
Proximity to nature and the shoreline drives luxury home sales on the North Shore. For example, Rockport and Gloucester, the two cities within this market that are closest to the ocean, both experienced an 11 percent increase in median home prices.
The volume of luxury, single-family homes sold in coastal North Shore towns remained relatively stagnant year over year.
In Beverly, the volume of luxury, single-family homes sold declined 28 percent.
The average North Shore luxury buyers are looking for second homes to use on weekends and summers as an escape from corporate life in Boston.
“Our annual luxury report explores the latest trends in buying and selling behavior, equipping our brokers and agents with essential knowledge that facilitates improved client service,” said Dan Breault, executive vice president and regional director at RE/MAX INTEGRA, New England. “Our brokerages collectively list many luxury properties in New England, and as such we are motivated to understand the lifestyle needs and preferences of the diverse and growing luxury buyer sub-sets.”
The 2017 data illustrates that seaside towns catering to younger, wealthier families through equal access to coastline and lifestyle amenities experienced the largest growth; examples include York, Maine, Portsmouth, New Hampshire, and New London County, Connecticut.
Other highlights in this year’s report include:
North Shore Region, MA: Stagnant volume of sales as a result of minimal inventory rather than low interest; Gloucester showed a median price increase of 20 percent.
South Shore Region, MA: Saw 64 percent uptick in home sales; Scituate and Duxbury led the way with 41 and 64 percent increases in single-family luxury home sales, respectively.
Seacoast Region, NH: All towns increased single-family luxury home sales, attributed to Millennial and Gen-X buyers seeking access to lifestyle amenities and active town centers.
Cape Cod, MA: Epically low levels of inventory coupled with cash buyers make Cape Cod a perennially competitive market for luxury properties; Wellfleet sales increased 225 percent; Bourne luxury home sales increased 200 percent.
Newport & Narragansett, RI: Attracting more move-up and second-home buyers; residents are focused on procuring value-driven properties
Boston, MA: Luxury single-family home sales in Back Bay and West End declined while South Boston sales volumes grew significantly for luxury single-family homes and condominiums.
Shore Region, CT: Increasingly popular with older Millennials and Gen-X families making move-up, luxury single-family home purchases; an emerging “seller’s market.”
Lake Winnipesaukee, NH: Increase in median luxury home prices with Laconia and Moultonborough leading home sale volumes, 300 and 36 percent respectively.
All report data was sourced from Multiple Listing Service data aggregators, Nielsen demographics data, and RE/MAX agents and brokers. The data was compiled based on the definition of a luxury home, being those sold at a price point of over $900,000. 2017 data is defined as the last twelve months, encompassing May 1, 2016 to April 30, 2017 and 2016 data is defined as the previous twelve months, encompassing May 1, 2015 to April 30, 2016.
Download the full report here.