Market Perspective | Landvest Blog

May

Thinking about Buying a Vacation Home? Wall Street Journal says “BUY NOW”
By LandVest

In "Vacation Homes Beckon" the Wall Street Journal suggests now is the time to purchase vacation homes such as The Grace Estate in Islesboro, Maine

There was an encouraging article in this weekend’s Wall Street Journal (“Vacation Homes Beckon”) about improving market conditions in specific high-end locations. The article suggests that buyers considering a purchase in the next five years would do well to buy now. In certain places, the vacation home market is showing a) signs that a bottom has already been reached; b) indications that things are picking up; and c) great opportunity for long-term investment. According to National Association of Realtors statistics, sales of vacation properties declined sharply (56%) from 2006 to 2010, but increased 7% in 2011. Still, prices remain soft, and in some markets, prices are clearly still dropping. The article cautions that there are sharp geographical divides, and even pronounced dichotomies within markets. The old adage “all real estate is local” is certainly true.

The WSJ writes, "...the swankiest towns—such as Chatham and Wellfleet—are making a comeback. " suggesting it's a good time to invest in this pre-construction luxury townhouse located in Chatham, MA.

We’re encouraged by the positive press, every bit of which helps stimulate buyers’ confidence, and by the statistics indicating that markets like southeastern Georgia and Cape Cod are making a comeback. Some of the specific factors fueling this recovery vary from region to region, but the one thing that rings true in all of them is that buyers are responding to prices that are too appealing to pass by. Among the markets that are “heating up” or “slowly strengthening,” prices have dropped an average of 30% off their peak, with some markets seeing drops as high as 50% and more. In markets where the “forecast is flat,” such as Scottsdale, Arizona, prices are 56% off their peak.

Click here for full article.

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May

MA Real Estate News, Middlesex County: High-End Market Watch, First Quarter, 2012
By LandVest

Middlesex County, Massachusetts, is the most populous county in New England and is located west and northwest of Boston. It contains some of the wealthier towns in Massachusetts and was recently ranked 10th in the country in terms of the number of millionaires. It includes urban, suburban, and rural areas reaching from urban Cambridge, home to Harvard University and the Massachusetts Institute of Technology, to the New Hampshire border. Within Route 95/128, towns with high-end real estate include Belmont with its attractive historic Belmont Hill section; Lexington of Revolutionary War fame; Newton particularly the Chestnut Hill area and home to Boston College; and Winchester with wonderful vistas across the Mystic Lakes. Between Route 95/128 and Route 495, along the Route 2 and Route 20 corridors, Carlisle, Concord, Lincoln, Sudbury, Wayland, and Weston are small historic towns that have maintained a sense of their rural past. Sherborn is an anomaly linked more to the neighboring equestrian towns of Dover and Medfield in Norfolk County. Outside Route 495, Groton is notable for its early 19th century architecture, substantial farm land, and two highly-regarded boarding schools: Groton School and Lawrence Academy.

Active Listings and Sales, $2,000,000+, First Quarter, 2012

In Middlesex County, Massachusetts, in the first quarter of 2012 the inventory of high-end listings grew slightly compared to last year at this time (136 vs. 130 listings in Q1 2011 and a peak of 174 in Q1 2006). First quarter high-end sales contracted substantially to 15 sales compared to nearly record levels in 2011 (23 sales) and compared to the peak in 2005 (24 sales) and 2007 (23 sales). The first quarter of 2011 started off more strongly than 2010 and several record sales set an optimistic tone. Unfortunately, the middle of the year lagged and fell behind in the last quarter of 2011 with 77 sales for the year vs. 81 for 2010.

Highest and Average Sale, $2,000,000+, First Quarter, 2012

First quarter sale prices peaked in 2005 to 2007 at the $6,000,000 to $7,000,000 level and there was an exceptional $15,600,000 sales in the first quater of 2011. In 2012, the top first quarter sale was LandVest’s sale of the Great Meadows estate in Concord for $5,264,699. Average first quarter sales prices have been generally more stable in the range of $2,400,000 to $2,900,000 over the past 10 years. In the first quarter of 2012 the average sale price was $2,928,195.

Days on Market, Sales, $2,000,000+, First Quarter, 2012

Days on market for first quarter high-end sales have varied dramatically over the past 10 years. Average days on market for Q1 2012 were 144 vs. 197 in 2011, 139 in 2010, and 308 in 2009. The average days on market for the first quarter over the period 2000-2012 is 184. Despite the continued uncertainty in the market, special properties expertly presented and well priced are selling.

Sales by Town, $2,000,000+, First Quarter, 2012

Seven of the 54 cities and towns in Middlesex County Massachusetts had high-end sales in the first quarter of 2012. Weston was the leader with 6 sales followed by Cambridge(3), Concord (2), Lexington (1), Newton (1), Wayland (1),and Winchester (1). For first quarter sales over the period2000-2012, the leaders are Newton (50), Weston (48), Cambridge (36), Concord (18),and Lexington (15).

This post was brought to you by Stewart Young (syoung@landvest.com). Whether it’s an elegant Greek Revival in Lincoln, a 130 acre farm in Medfield, or a waterfront summer estate on Stage Harbor in Chatham, Stewart advises buyers and sellers of some of the most distinctive properties in Massachusetts with a focus on Cape Cod, and the Metro West area of Boston. View Stewart’s current Real Estate listings.

For additional information about LandVest’s real estate consulting, appraisal, and brokerage services, please contact: Ruth Kennedy Sudduth.

The LandVest High-End Market Watch is a periodic review of select high-end markets in Maine, Massachusetts, New Hampshire, Rhode Island, Vermont and the Adirondacks. Market data is collected from Multiple Listing Services and does not include private listings. LandVest makes no representation as to the accuracy of the data and therefore is not responsible for any actions taken as a result of use of or reliance on this information.

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May

MA Real Estate News, Cape Cod: High-End Market Watch, First Quarter, 2012
By LandVest

Cape Cod is internationally famous as a summer resort area and is increasingly popular for retirement living. It features miles of beaches, natural attractions, historic sites, art galleries, and four star restaurants and hotels. Outdoor activities include world class yachting, coastal and deep-sea fishing, numerous public and private golf courses, and a wide variety of other informal summer sports. The Cape is just 75 miles from Logan Airport in Boston, Massachusetts and T.F. Green Airport in Providence, Rhode Island. Executive jet services are available at the Hyannis airport and there are several other smaller airports. Cape Cod is divided into four regions: Upper Cape, Mid Cape, Lower Cape, and Outer Cape, each including several towns and villages. Upper Cape towns include Bourne, Sandwich, Falmouth, and Mashpee. Mid Cape towns include Barnstable, Dennis, and Yarmouth. Lower Cape towns include Harwich, Brewster, Chatham, and Orleans. Outer Cape towns include Eastham, Wellfleet, Truro, and Provincetown.

Active Listings and Sales, $2,000,000+, First Quarter, 2012

On Cape Cod, Massachusetts, the first quarter 2012 inventory of high-end listings grew as expected to 224 compared to 191 at year end 2011, but not as high as the record level of 235 listings in the first quarter 2011. First quarter high-end sales increased significantly to 13 from 6 in the first quarter of 2011. The peak for first quarter sales was 23 sales in 2008. Year end 2011 sales were down 10% from 2010, with exceptionally slow second and third quarters. LandVest brokers are reporting strong activity in their high-end market across New England and we are hopeful that this strong first quarter on Cape Cod will be followed by a strongspring and summer. We have the sense that buyers, who have been largely on the fence, are starting to realize that we are approaching a turning point in the market.

Highest and Median Sale, $2,000,000+, First Quarter, 2012

In the first quarter of 2012 the top sale on Cape Cod was LandVest’s sale of Mill Farm in Yarmouth Port for $6,000,000. This sale is a good example of changing buyer perceptions. In this case the buyer had been watching the property for several years and finally decided that it was time to act. The median value for high-end sales in the first quarter of 2012 was $2.4 million, the lowest level since 2004.

Days on Market, Sales, $2,000,000+, First Quarter, 2012

Days on market for high-end properties sold during the first quarter of 2012 were reduced somewhat to 536 from the record level of 577 in the first quarter of 2011. For 2000-2010, the average days on market for sales in the first quarters of the year ranged from 99 to 342 days. Given the large inventory of listings, it is likely that average days on market will remain high.

Sales by Town, $2,000,000, First Quarter, 2012

For the past few years the high-end market on Cape Cod has broadened as the perennial top markets have been perceived as being too expensive and as buyers have bid up the prices of special properties in other towns. While the volume in the first quarter of 2012 is small, the geographic spread continues to be broad. Nine of the fifteen Cape Cod towns had high-end sales in the first quarter of 2012 including Barnstable (Barnstable and Cotuit) (2), Chatham (2), Harwich (Harwich Port and West Harwich) (2), Mashpee (New Seabury and Popponesset) (2), Pocasset (1), North Falmouth (1), East Orleans (1), Truro (1), and Yarmouth Port (1).

For additional information about LandVest’s real estate consulting, appraisal, and brokerage services, please contact: Ruth Kennedy Sudduth.

The LandVest High-End Market Watch is a periodic review of select high-end markets in Maine, Massachusetts, New Hampshire, Rhode Island, Vermont and the Adirondacks. Market data is collected from Multiple Listing Services and does not include private listings. LandVest makes no representation as to the accuracy of the data and therefore is not responsible for any actions taken as a result of use of or reliance on this information.

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Apr

LandVest Tracks High-End Real Estate Sales with Publication of Second Annual Index
By LandVest

LandVest, an exclusively high-end focused real estate firm based in New England, affiliated with Christie’s International Real Estate, announces the second annual publication of the LandVest Index. The LandVest Index tracks high-end $2,000,000 plus real estate sales in Maine, Massachusetts, New Hampshire, Rhode Island, Vermont, and the Adirondack region of New York. For 2011, high-end sales across LandVest’s territories were stable compared to last year (2% reduction, 588 vs 598 sales).

2011 marked a year of stabilization in the luxury real estate market in New England. Sales have recovered from the extremely weak levels of 2009, but remain well below the boom year of 2007. Compared to the peak of 840 sales in 2007, sales in 2011 were down 30%; however, they have recovered substantially from a bottom of 442 sales in 2009. More detailed market reports including long-term trends in listings, sales, and average and top sales prices, and days on market are being developed and are currently available for Cape Cod (see Cape Cod Market Perspective) and Middlesex County, Massachusetts (see Middlesex, MA Real Estate Market Report).

Stewart Young, LandVest’s Regional Manager for Cape Cod, also active in the western suburbs of Boston, compiles the LandVest Index. According to Young, “ The market is in a much better place. In 2011, the inventory of active listings started to contract leaving a ratio of sales to listings more typical of pre-bubble years and suggesting a more balanced market for 2012”.

Ruth Kennedy Sudduth, LandVest’s Managing Director of Residential Brokerage, observed that the numbers mask a tremendous change in tone for the positive over the last year. “Sellers and buyers have both become far more realistic. Sellers know that the market is back to levels of a decade ago and buyers are seeing that as a tremendous opportunity to pick up landmark properties at superb values.” She noted a second trend, of well-heeled purchasers using debt to finance their purchases. “With interest rates at historic lows, and growing interest in real assets, buyers are borrowing to finance real estate purchases in order to hedge against potential inflation in the future.”

LandVest, founded in 1968, and headquartered in Boston, Massachusetts, is a leading brokerage firm for luxury real estate across New England. The firm provides advisory, brokerage, and timberland services. Exclusive affiliate of Christie’s International Real Estate, LandVest enjoys global reach through their affiliation with the global fine art auction house and their private network of high end real estate associates. Recent major transactions include:

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Mar

Middlesex County, MA Real Estate News: High-End Market Watch, Year End, 2000-2011
By LandVest

Middlesex County, Massachusetts is the most populous county in New England and is located west and northwest of Boston. It contains some of the wealthier towns in Massachusetts and was recently ranked 10th in the country in terms of the number of millionaires. It includes urban, suburban and rural areas reaching from urban Cambridge, home to Harvard University and the Massachusetts Institute of Technology, to the New Hampshire border. Within Route 95/128, towns with high-end real estate include Belmont with its attractive historic Belmont Hill section; Lexington of Revolutionary War fame; Newton, particularly the Chestnut Hill area and home to Boston College; and Winchester with wonderful vistas across the Mystic Lakes. Between Route 95/128 and Route 495, along the Route 2 and Route 20 corridors, Carlisle, Concord, Lincoln, Sudbury, Wayland and Weston are small historic towns that have maintained a sense of their rural past. Sherborn is an anomaly linked more to the neighboring equestrian towns of Dover and Medfield in Norfolk County. Outside Route 495, Groton is notable for its early 19th century architecture, substantial farmland, and two highly-regarded boarding schools: Groton School and Lawrence Academy.

Active Listings and Sales, $2,000,000+, Year End , 2000-2011

In Middlesex County, Massachusetts, in the fourth quarter of 2011 the inventory of high-end listings shrank to the lowest levels since 2004. At the end of 2011 there were 87 listings compared to 114 at the end of 2010 and 154 at the end of the third quarter of 2011. The record for year-end inventory was 133 listings in 2005. While it is customary to see a reduction in the number of listings in the winter months, we believe that the cause of this exceptional decrease is price changes resulting in properties dropping below our high-end definition of $2,000,000. In 2011 there were 77 sales, down slightly from 2010 and 39% below the peak in 2007. The number of high-end sales peaked in 2006 (121 sales) and 2007 (126 sales). The past four years have seen considerably less activity: 98 sales in 2008, 60 sales in 2009, and 81 sales in 2010. The first quarter of 2011 was hot following on strong performance in the last quarter of 2010 with 23 sales compared to 14 in 2010. The second and third quarters were relatively strong and ahead of 2010 but ran out of steam in the fourth quarter. Towns with high-end sales in 2011 were Belmont, Cambridge, Concord, Lexington, Lincoln, Newton, Sherborn, Sudbury, Weston, and Winchester.

Highest And Average Sale, $2,000,000+, Year End, 2000-2011

In 2011, the top sale in Middlesex County was a record $15,600,000 in Weston followed by another nearly record sale of $8,350,000 also in Weston. The two highest sales in the past twelve years were $13,301,027 in Chestnut Hill in 2006 and $10,000,000 in Weston (excluding private sales). Average year-end sale prices have been generally stable in the range of $2,600,000 to $2,900,000 over the past twelve years. Of the 77 high-end sales in 2011, 56 or 76% were between $2,000,000 and $3,000,000 and the average sale price was $2,871,886. Only 5% of high-end sales are above $4,000,000.

Days On Market, Sales, $2,000,000+, Year End, 2000-2011

Days on market for high-end sales improved during 2011. Average days on market were 197 at the first and second quarters, 183 at the third quarter, and 176 at year end. In comparison, year end days on market were 187 in 2009 and 236 in 2009. LandVest’smarkets are experiencing palpable improvements in volume and significant record sales. As always special properties expertly presented reaching out to a broad market with a strong value proposition are well received by the market. Sales By Town, $2,000,000+, Year End, 2000-2011.

Sales by Town, $2,000,000+, Year End, 2000-2011

Ten of the 54 cities and towns in Middlesex County, Massachusetts, had high-end sales in 2010. Over the period 2000-2011, Weston is the leader with 262 sales followed by Newton (246), Cambridge (180), and Concord (121). On a population-adjusted basis, Weston is also the leader by a 3-fold margin followed by Concord and Lincoln.

Click for more information about Middlesex County Real Estate for sale.

The LandVest High-End Market Watch is a periodic review of select high-end markets in Maine, Massachusetts, New Hampshire, Rhode Island, Vermont and the Adirondacks. Market data are collected from Multiple Listing Services and do not include private listings. LandVest makes no representation as to the accuracy of the data and therefore is not responsible for any actions taken as a result of use of or reliance on this information.

For additional information about LandVest’s real estate consulting, appraisal and brokerage services, please contact Ruth Kennedy Sudduth.

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Mar

Cape Cod MA Real Estate News: High-End Market Watch, Year End, 2000-2011
By LandVest

Cape Cod is divided into four regions: Upper Cape, Mid Cape, Lower Cape, and Outer Cape, each including several towns and villages and each with their own unique charms. Upper Cape towns include Bourne, Sandwich, Falmouth, and Mashpee. Mid Cape towns include Barnstable, Dennis, and Yarmouth. Lower Cape towns include Harwich, Brewster, Chatham, and Orleans. Outer Cape towns include Eastham, Wellfleet, Truro, and Provincetown.

For additional information on Cape Cod, check out: http://www.capecodonline.com

Active Listings and Sales, $2,000,000+, Year End, 2000-2011

On Cape Cod, Massachusetts, the inventory of high-end listings shrank 30% from a record high of 271 listings at the end of June to 191 listings at the end of 2011. Typically the listing inventory grows through the first three quarters and then declines in the fourth quarter as sales are closed and properties are taken off the market. This unusually strong contraction is likely a combination of properties being repriced below our high-end cut-off of $2,000,000 as well as sellers taking properties off the market. High-end sales lagged throughout 2011 compared to 2010, which had shown significant improvement compared to 2009. At year end 2011 there were 50 sales compared to 55 at year end 2010 and 41 sales in 2009, the lowest since 2002. The peak level of sales at year end was 88 in 2007.

Overall, the Cape Cod market continues to underperform compared to the peak years of the real estate bubble, but better than performance before 2003. Anecdotal information from leading Cape Cod brokers and LandVest’s own recent experience suggests that there was a modest, but noticeable increase in buyer inquiries during the fourth quarter of 2010. Across New England LandVest brokers continued to report an upsurge in activity in our markets and sporadic signature sales throughout the fall and winter. The bad news is sales are down compared to recent highs. The good news is that sales are as good or better than longer term historical trends and bloated inventories seem to be settling out.

Highest and Median Sale, $2,000,000+, Year End, 2000-2011

In 2011 the very high-end on Cape Cod came alive with twelve sales above $5 million. The top sale was $11.6 million for an 11,500 square foot residence with waterfront in the Seapuit neighborhood of Osterville, approaching the all-time record of $12,500,000. There were two additional top sales in Osterville in 2011: 120 North Bay Road for $6,200,000 and 395 Eel River Road for $6,500,000. In Chatham, 74 Sears Point Road sold for $6,500,000.

The median value for high-end sales in 2011 was $2.8 million, about on par with median sale prices over the past decade. The high-end market on Cape Cod is predominately in the $2-$3 million range. During 2011, there were 50 sales above $2.0 million. Of these sales 29 of 50 (58%) were between $2 and $3 million and 39 of 50 (78%) were below $4 million. There were 5 sales above $6,000,000.

Days on Market, Sales, $2,000,000+, Year End, 2000-2011

Days on market for high-end properties sold during 2011 increased slightly to a record level of 473 days compared to 461 days in 2010. For 2000-2010, the average days on market ranged from 90 to 461 days, generally increasing over time with a significant jump in 2010. Hopefully the decreasing inventory and stable or growing demand will result in improving turnover in 2012.

Sales by Town, $2,000,000+, Year End, 2000-2011

Starting around 2002 the high-end market on Cape Cod broadened as the perennial top markets were perceived as being too expensive and as buyers bid up the prices of special properties in other towns. By 2006, 13 of the 15 towns on Cape Cod were recording sales above $2 million. In 2010 and the first half of 2011, however, there was a substantial contraction in the market with only 5 towns recording high-end sales. In the second half of 2011, the market broadened again with an additional 8 towns recording single high-end sales. Cape Cod towns with high-end sales in 2011 include Chatham (17 sales and the leader for the second time, last in 2009), Barnstable (14, all Osterville except Marstons Mills, 1), Orleans (5), Falmouth (3), Dennis (2), Harwich Port (2), Bourne (1), Brewster (1), Eastham (1), Mashpee (1), Provincetown (1), Sandwich (1), and Truro (1).

Calves Pasture Waterfront in Barnstable, MA is currently for sale

Cohasset Waterfront Estate in Cohasset, MA is currently for sale

Fairview Waterfront Compound in Woods Hole, MA is currently for sale

Viking Point in Orleans, MA is currrently for sale

Wychmere Waterfront Estate in Harwich Port, MA is currently for sale

View Cape Cod Area Select Sales.

To view available real estate on Cape Cod visit www.landvest.com or click Cape Cod Real Estate for Sale.

For information about buying or selling real estate on Cape Cod, please contact Stewart Young at syoung@landvest.com or 617-357-8930

For additional information about LandVest’s real estate consulting, appraisal, and brokerage services, please contact: Ruth Kennedy Sudduth.

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Feb

Perspectives on Luxury Real Estate in New England
By LandVest

Private Properties – Perspectives on Luxury Real Estate

The market for high end properties in New England strengthened in 2011. There are great deals being done. Prices are approaching those of 2001-2002. LandVest is seeing interest across our regions, with the strongest activity along the coast, from Mount Desert to the North Shore of Boston. Highlights include Story Litchfield’s, sale of the 15 million listing Indian Head, on Mount Desert Island, besting her previous record sale for the state of Maine.

LandVest’s private transactions have led the market, including in Maine a recent sale on Prouts Neck by John Scribner, and near Woodstock, Vermont of Lull Brook Farm, by Ruth Kennedy Sudduth, and Story Jenks. LandVest’s private listings help buyers and sellers while avoiding the public eye. Please contact any of our brokers with your specific area of interest. We are seeing landmark properties offered at tremendous values:

In Vermont, Wakanta, one of the best properties in the Mad River Valley, evokes Vermont vernacular with bold mountain views. All the amenities; open living areas, sleeps a crowd, barn, hot tub, trout pond and a great location close to Sugarbush and Mad River Glen.

Click here to view property details

On Boston’s North Shore, Aquila Farm, is an 80 acre equestrian estate within easy reach of 128 and downtown. Offered for $4,950,000, the property includes a main house, guest house, barns, has potential for subdivision and is a superb investment value.

Click here to view property details

On Cape Cod, Fairview Waterfront Compound located at 43 Church Street in Woods Hole is listed at $14 million, well below basis. With subdivision potential on one of the best waterfront sites on the Cape, this is an outstanding opportunity.

Click here to view property details

Classic Shingle-style on Nashawtuc Hill in Concord, MA.
A beautifully restored shingle-style home in a quiet setting walking distance from Concord center. The flowing, flexible floor plan, combined with high ceilings, hardwood floors, and beautiful period details throughout, creates a perfect atmosphere for entertaining and family life.

Click here to view property details

In New Hampshire, Indian Portage on Squam Lake, is a recently constructed Adirondack style retreat with boathouse, one of the prized major properties on quiet Squam Lake. Abutting conservation land, the 24.94 acre estate includes a cottage with deck extending over the water and a guest house.

Click here to view property details

These are a few of the great opportunities available at a fraction of replacement value. LandVest is seeing a pick up in activity from knowledgeable, affluent buyers seeking opportunities to pick up landmark hard assets at very attractive prices. Please contact us or visit our website for further information.

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Dec

Middlesex County, MA Real Estate News: High-End Market Watch, Q1-Q3, 2000-2011
By LandVest

Middlesex County, Massachusetts is the most populous county in New England and is located west and northwest of Boston. It contains some of the wealthier towns in Massachusetts and was recently ranked 10th in the country in terms of the number of millionaires. It includes urban, suburban and rural areas reaching from urban Cambridge, home to Harvard University and the Massachusetts Institute of Technology, to the New Hampshire border. Within Route 95/128, towns with high-end real estate include Belmont with its attractive historic Belmont Hill section, Lexington of Revolutionary fame, Newton, particularly the Chestnut Hill area and home to Boston College, and Winchester with wonderful vistas across the Mystic Lakes. Between Route 95/128 and Route 495, along the Route 2 and Route 20 corridors, Carlisle, Concord, Lincoln, Sudbury, Wayland and Weston are small historic towns that have maintained a sense of their rural past. Sherborn is an anomaly linked more to the neighboring equestrian towns of Dover and Medfield in Norfolk County. Outside Route 495, Groton is notable for its early nineteenth century architecture, substantial farmland and two highly-regarded boarding schools: Groton School and Lawrence Academy.

Active Listings and Sales, $2,000,000+, Q1-Q3, 2000-2011

In Middlesex County, Massachusetts, in the first three quarters of 2011 the inventory of high-end listings shrank from record levels in the previous quarter (154 vs. 193 listings at the end of June) and compared to the same time last year (182 listings at the end of September 2010). The first quarter of 2011 had experienced a dramatic decrease in high-end listings down to nearly record lows of 130 so the second quarter was particularly active in terms of new listings coming on the market and the reduction in the number of listings in the third quarter is even more striking.

High-end sales through September are slightly higher than last year (63 vs. 57 in 2010), but significantly behind the average of 74 sales over the past 12 years. Peak high-end sales for the first three quarters occurred in 2007 with 105 sales. The first quarter of 2011 started off more strongly than 2010 and several record sales created an optimistic buzz in the brokerage community. The second quarter did not keep up this accelerated pace and, while the third quarter of 2011 was stronger than last year, at the end of September the number of sales is off approximately 40% from the peak. On the positive side, while off from the peak, the high-end market in Middlesex County appears to have stablilzed at a reasonable level compared to historic levels of inventory and sales.

Highest And Average Sale, $2,000,000+, Q1-Q3, 2000-2011

Sale prices for the first two quarters peaked in 2005 to 2007 at the $6,000,000 to $7,000,000 level with an anomalous $10,000,000 sale in 2008. In 2011, the top sale to date was a record $15,600,000 in Weston. There was another nearly record sale in Weston at $8,350,000. Average sale prices have been generally more stable in the range of $2,700,000 to $2,900,000 over the past 10 years. In the first three quarters of 2011 the average sale price was $2,870,048.

Days On Market, Sales, $2,000,000+, Q1-Q3, 2000-2011

Days on market for high-end sales in the first three quarters have varied considerably over the past 12 years. Average days on market through September of 2011 were 183 vs. 180 in 2010, 240 in 2009 and 173 in 2008. The average days on market for the first three quarters over the period 2000-2011 was 178. Despite the continued uncertainty in the market, special properties expertly presented and well priced are selling, but it can take time, although not much longer than in years past. Buyers continue to demand value and are leery of projects. Land sales have been mixed with developers being particularly risk averse.

Sales By Town, $2,000,000+, Q1-Q3, 2000-2011

Ten of the 54 cities and towns in Middlesex County, Massachusetts had high-end sales in the first three quarters of 2011. Newton was the leader with 18 sales followed by Weston (12), Cambridge (10), Belmont (6), Lexington (6), Winchester (4), Concord (2), Lincoln (2), Sherborn (2), and Sudbury (1). For sales in the first three quarters over the period 2000-2011, the leaders are Weston (219), Newton (201), Cambridge (138), Concord (99), Lexington (56), and Lincoln (37). On a population-adjusted basis, Weston remains the sales leader followed by Concord and Lincoln.

Stonegate Farm in Wayland, MA is currently for sale

Wayland Pastorale in Wayland, MA
was a record sale

Riverwalk in Lincoln, MA was a record sale

Click for more information about Middlesex County Real Estate for sale.

For additional information about LandVest’s real estate consulting, appraisal and brokerage services, please contact Ruth Kennedy Sudduth.

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Dec

Cape Cod Real Estate News: High-End Real Estate Market Watch Q3 2011
By LandVest

Active Listings and Sales, $2,000,000+, First Three Quarters, 2000-2011

On Cape Cod, Massachusetts, the inventory of high-end listings in the first three quarters of 2011 shrank 14% from 271 listings at the end of June to 233 listings at the end of September. Typically the listing inventory grows through the first three quarters and then declines in the fourth quarter as sales are closed and properties are taken off the market. This unusual trend is likely a combination of properties being repriced below our high-end cut-off of $2,000,000 as well as sellers taking properties off the market.

High-end sales declined from 38 in the first three quarters of 2010 to 33 in 2011. The peak level of sales for this time of year was 60 sales in the first three quarters of 2006. Third quarter performance has been flat for the past four years with 13 sales in the third quarter of 2011 and a peak of 23 sales in the third quarter of 2007. The very high-end inventory is also shrinking, but remains large by historical standards. There are 29 listings over $5 million and 8 over $10 million with 6 sales over $5 million and 1 sale over $10 million in the first three quarters of 2011. Overall, the Cape Cod market continues to under perform, but anecdotal information from leading Cape Cod brokers and LandVest’s own recent experience suggests that there is a modest, but noticeable increase in buyer inquiries and showings. Across New England LandVest brokers continued to report an upsurge in activity in our markets and sporadic signature sales throughout the summer and early fall.

Highest and Median Sale, $2,000,000+, First Three Quarters, 2000-2011

In the third quarter of 2011 the very high-end on Cape Cod came alive with three sales above $5 million. The top sale was $11.6 million for an 11,500 square foot residence with waterfront in the Seapuit neighborhood of Osterville. There were two additional top sales in Osterville in the third quarter. 861 Seaview Avenue for $5,265,000 and 395 Eel River Road for $6,500,000. In Chatham, 74 Sears Point Road sold for $6,500,000.

The median value for high-end sales in the first three quarters of 2011 was $2.8 million, about on par with median sale prices over the past decade. The high-end market on Cape Cod is predominately in the $2-$3 million range. In the first three quarters of 2011, there were 33 sales above $2.0 million. Of these sales 20 of 33 were between $2 and $3 million and 25 of 33 were below $4 million.

Days on Market, Sales, $2,000,000+, First Three Quarters, 2000-2011

Days on market for high-end properties sold during the first three quarters of 2011 increased to 559 days compared to 533 days in the first half of the year and compared to the record of 589 days for the first half of 2010. For 2000-2009, the average days on market for sales in the first half of the year ranged from 90 to 226 days, generally increasing over time with a significant jump in 2010.

Sales by Town, $2,000,000+, First Three Quarters, 2000-2011

Starting around 2002 the high-end market on Cape Cod broadened as the perennial top markets were perceived as being too expensive and as buyers bid up the prices of special properties in other towns. By 2006, 13 of the 15 towns on Cape Cod were recording sales above $2 million. In the first half of 2010, however, there was a substantial contraction in the market with only 5 towns recording high-end sales. In the first half of 2011, the market had broadened again with an additional 4 towns recording single high-end sales and in the third quarter another 2 towns recorded high-end sales. Cape Cod towns with high-end sales in the first three quarters of 2011 include Barnstable (all Osterville) (11), Chatham (8), Orleans (4), Falmouth (2), Harwich Port (2), Brewster (1), Dennis (1), Mashpee (1), Provincetown (1), and Truro (1).

Mill Farm Waterfront Compoundin Yarmouthport, MA is currently for sale

Wychmere Waterfront Estate in Harwich Port, MA is currently for sale

Cohasset Waterfront Estatein Cohasset, MA is currently for sale

Fairview Waterfront Compound in Woods Hole, MA is currently for sale

View Cape Cod Area Select Sales

To view available real estate on Cape Cod visit www.landvest.com or click Cape Cod Real Estate for Sale

For information about buying or selling real estate on Cape Cod, please contact Stewart Young at syoung@landvest.com or 617-357-8930

For additional information about LandVest’s real estate consulting, appraisal, and brokerage services, please contact: Ruth Kennedy Sudduth.

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Dec

LandVest Real Estate Activity in Maine: A Reason for Optimism
By LandVest

This entry is brought to you by Terry Sortwell and Shannon Thompson, who assist and advise real estate owners and buyers of fine homes and estates throughout Midcoast Maine.

We at LandVest
have seen increased activity this year,
with a number of encouraging sales. The statistics—and other characteristics of the
market—suggest that values and sales activity
are in a holding pattern at the bottom. Statistics from the Multiple Listing Service (MLS) show that
in the coastal towns from Boothbay to Blue Hill there have been twenty sales of properties priced
over a million so far this year, with one sale pending. Of these, seven are LandVest listings.
Statewide, there have been 119 sales and 12 sales are pending. This is consistent with the number of
sales in 2010 (27 in the midcoast region, 140 statewide.)

Indian Head, Northeast Harbor, Story Litchfield's LandVest listing, was the highest recorded residential sale in the state of Maine

Statewide at the very top of the market, above $3 million, there have
been nine sales statewide, and four sales are pending. Of these thirteen sales, eight were LandVest
listings, and four of the five sales above $4 million were LandVest listings. There were twelve
sales above $3 million in 2010.

A recent white paper by Edward
Chancellor from the global investment management firm GMO examined the stages of the real estate
cycle. Typically the peak is characterized by high valuations, high levels of private sector credit
growth, new forms of lending, high levels of construction, speculative purchasing, and rising
interest rates. A credit crunch and defaults on existing property loans generally signal the turn,
and then the market begins the long, slow slide into “the trough,” where the market tends to linger
due to the lack of liquidity in real estate. We are clearly in this trough, which is characterized
by low valuations, lower leverage, low housing turnover, pent-up demographic demand, and continuing
pessimism toward real estate. Since markets tend to move more slowly on a decline or when moving
laterally, they usually spend several years in the trough.

The Real Estate Cycle in Five Stages, source: GMO

The real estate market is moving through its paces, and there are
reasons for optimism, especially on the coast of Maine. On average, it has taken real estate markets
five years to hit the trough after a bubble, and it’s been five years since housing prices peaked.
And Chancellor believes there are other indications that the worst is over: valuations are
reasonable. Mortgages are available, and at lower rates than we’ve seen in decades. Supply remains
elevated relative to demand, but sales have fallen to an extent that if demand recovers to normal
levels, excess supply would disappear—and in some markets, be replaced by a shortage.

Caldwell Island, a record sale for Muscongus Bay, by Terry Sortwell, regional manager and principal with LandVest in Camden, Maine

Here in Maine, as in elsewhere in the country, buyers are holding back.
The vacation home market has many defining characteristics, and these days perhaps none is more
definitive than the fact that no one has to buy a second- or third- home. So the majority of buyers
are still waiting, and while they wait, demand builds, which bodes well for the future. Chancellor
believes, and we agree wholeheartedly, that the long-term fundamentals of the real estate market are
sound. When the economy recovers and unemployment declines, home prices and construction will both
pick up, and a real estate boom will follow. The new buyer, who is younger (ages 30-50) and more
mobile, is increasingly attracted to Maine,
its quality of life, and the relatively reasonable real estate values to be found here. We’re seeing
more and more buyers from this growing demographic, many with young children, deciding that it’s
time to fulfill their dream of a vacation home here.

Though we’re
in the trough, we’re not without hope, nor without sales activity. We can say with some confidence
that the stalemate between buyers and sellers that we’ve been talking about for the last couple of
years has broken. There have been enough sales of waterfront and other exceptional properties
to allow buyers, sellers, appraisers, and brokers to draw educated conclusions about valuation. With these sales we’re starting to have enough hard data to
begin to gauge real value in the current market. When sales offer more concrete rationale for
pricing, they also generate more confidence among buyers to move forward.

Lilyhaven, Isleboro, sold by Terry Sortwell and William Davisson

While we are beginning to have a better grasp on valuation and pricing,
it’s very difficult to predict what’s going to sell or in what period of time. At the top of the
market, most properties are experiencing slight decreases in value, though the very best among them
are holding value well. The sale (by our Northeast Harbor broker Story Litchfield) of a property on
Somes Sound for $12.25 million was the highest residential sale
ever in the state of Maine. In our own area, our February sale of Caldwell Island in St. George for $4.7 million is another
example of an exceptional property holding its value well, as is the sale of a property on Deep Cove inn Port Clyde for $1.9 million, and the sale of land parcels on
North Haven for $1.7 million. A property on Bremen Long Island that sold in early October for
$635,000 was one of several that attracted multiple offers.

Another peculiarity of this market has been dramatic bursts of activity in
very small markets. Islesboro, for instance, only had one sale over a million in 2006 and 2007. Then
in the three years between 2008 and 2011, sales activity jumped, with eight sales in this range.
There have been two sales this year. Similarly, the market on North Haven was dead quiet for years,
with only three sales above a million in the five years leading up to 2011. This summer and fall
there were six sales.

It remains to be seen whether these flurries
are isolated bubbles of activity or something of greater significance—pointing, perhaps, to renewed
confidence in Maine real estate. We certainly hope it’s the latter and
have many reasons to believe so.

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