Market Perspective | Landvest Blog

Aug

Middlesex County, MA Real Estate Market Watch First Half, 2000-2010
By LandVest

High-End Real Estate Market Watch, First Half, 2000-2010 – Middlesex County, Massachusetts

Monument Street Estate is one of many LandVest Listings in Middlesex County

Middlesex County has a long history of being an attractive place to buy real estate in Massachussets. Its close proximity to Boston combined with a variety of real estate offerings make it no surprise that it contains one of the wealthiest towns in the United States (Weston, MA) and that it is within the top 50 most populous counties. Middlesex county includes the towns of Belmont, Cambridge, Carlisle, Concord, Lincoln, Newton, Winchester and the aforementioned Weston.

Active Listings and Sales, $2,000,000+, First Half, 2000-2010
In Middlesex County, Massachusetts, in the first half of 2010 the inventory of high-end listings grew to nearly record levels (183 listings vs. a peak of 192 in 2009). First half high-end sales peaked in 2005 (60 sales) and 2007 (61 sales). The past three years have seen considerably less activity in the first half: 47 sales in 2008, 27 sales in 2009, and 40 sales in 2010. The uptick seen in the first quarter seems to be sustained in the first half, although slightly behind 2008. A recent flurry of activity at LandVest suggests that this improvement is real. Towns with high-end sales in the first half of 2010 are Belmont, Cambridge, Concord, Lexington, Lincoln, Newton, Wayland, Weston, and Winchester.

Highest and Average Sale, $2,000,000+, First Half, 2000-2010
First half sale prices peaked in 2004-2007 at the $6,000,000 to $7,000,000 level with an anomalous $10,000,000 sale in 2008 in Weston. In 2010, the top sale in the first half was $6,500,000 in Chestnut Hill (Newton). Average first half sales prices are generally more stable in the range of $2,600,000 to $2,900,000 over the past ten years. In the first half of 2010 the average sale price was $2,761,349.

Days on Market, Sales, $2,000,000+, First Half, 2000-2010
Days on market for first half high-end sales have varied dramatically over the past 10 years. In the first quarter of 2010, properties that did sell sold quickly, while in the second quarter days on market have increased. Average days on market for the first half were 216 vs. 258 in 2009 and 186 in 2008. Despite the continued uncertainty in the market, special properties expertly presented and well priced are selling.

Sales by Town, $2,000,000+, First Half, 2000-2010
Nine of the 54 cities and towns in Middlesex County, Massachusetts, had high-end sales in the first half of 2010. Over the period 2000-2010 Weston is the leader with 126 sales followed by Newton (102), Cambridge (71), Concord (47), and Lexington (34). On a population-adjusted basis, Weston is also the leader by a 4-fold margin followed by Concord and Lincoln tied for second place and Winchester in third place.

The LandVest High-End Market Watch is a periodic review of select high-end markets in Maine, Massachusetts, New Hampshire, 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.

For additional information about LandVest’s real estate consulting, appraisal, and brokerage services, please contact:
Robert R. Borden III, President
Ten Post Office Square | Boston, MA 02109 | rborden@landvest.com | 617-357-8992

This Winchester Lakefront property in Middlesex County is available for sale.

For information about selling or buying real estate in Middlesex County, please contact Stewart Young at syoung@landvest.com or 617-357-8930

View Boston Area Select Sales

To view available real estate in Middlesex County, visit www.landvest.com or click Boston area real estate for sale

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Aug

Midcoast Maine Real Estate Market Shows Improvement
By LandVest

MIDCOAST MAINE REAL ESTATE ANALYSIS, JANUARY – JUNE 2010

This entry is brought to you by Terry Sortwell (tsortwell@landvest.com) and Shannon Thompson (sthompson@landvest.com), who assist and advise real estate buyers of fine homes and estates throughout mid-coast Maine.

The midcoast Maine real estate market in the first half of 2010 has improved over 2009. An analysis of MLS data of coastal and island communities from Boothbay real estate to the Blue Hill Peninsula real estate reveals there have been 16 sales of residential properties priced above $1,000,000 in the first half of this year. There were 8 sales in this range in the first half of 2009 (and 10 sales in the second half). In comparison, in 2006 there were 47 sales above $1,000,000. On the heels of the European financial crisis amid renewed concerns and confusion about the global economic recovery, the real estate market remains illiquid and unpredictable. Demand is still down, inventory of current listings is growing, and days on market are increasing. Generally speaking, buyers are purchasing properties when they find something with the exactly the special attributes they’re seeking, and they are extremely sensitive about pricing. Properties with a significant land component and lots of privacy, priced competitively for today’s market, are those that are getting the most attention and ultimately selling. Our four most recent midcoast maine real estate sales, in July, June and May, are all examples of this trend, offering 16, 21, 34, and 160 acres of land, respectively. Our sense of optimism about the long-term picture for coastal Maine real estate remains as strong as ever. While luxury real estate markets in other parts of the country are severely affected by bank-owned properties driving prices down, ours is not. We continue to believe the next couple of years will be a period of transition, with the market slowly stabilizing, as more buyers and sellers reach agreement and sign contracts. With every sale, buyers and sellers alike have a little more data on which to base decisions, and that knowledge helps fuels the confidence needed to keep things moving forward toward a more balanced market.

For more information on buying or selling real estate in the Camden, Maine area contact Terry Sortwell at tsortwell@landvest.com

Camden Maine Real Estate for Sale

Coastal Maine Real Estate for Sale

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May

Could Record Fine Art Sales Indicate Good News For High-End Real Estate?
By LandVest

This week’s blog entry is brought to you by Terry Boyle (Tboyle@landvest.com). Terry has worked extensively with buyers and sellers of unique and rare real estate holdings throughout the New England region and beyond, with a current concentration on the Boston Massachusetts South Shore and South Coast/Buzzards Bay markets.

Picasso painting "Nude, Green Leaves, Bust” sold for $106.5 million at Christies Auction

As widely reported, the Picasso painting “Nude, Green Leaves, Bust” sold for $106.5 million last week, setting the record for the highest sale price of a single painting ever. As much of a splash as the sale made in and of itself, there was almost as much news generated on what the sale could tell us about the overall health of the economy and what the future holds. At LandVest, we used the record breaking art sale as a jumping off point to examine whether portions of our residential inventory could be considered in an asset class like a Picasso, and what that comparison could tell us in attempting to predict sales volume in the high end residential market in the coming months.

Jasper Johns American Flag sells for 28.6 million

The initial question centers on what the current growing appetite for “hard assets” by investors means to the generational estate quality residential real estate market. According to Investopedia.com a “hard asset” is typically defined as “A tangible and physical item or object of worth that is owned by an individual or a corporation.” Or, better yet: “a hard asset is the opposite of an intangible item such as goodwill or a patent”. Hard assets are typically thought to be more desirable at times when there are fears of increasing economic inflation. The classic hard asset examples are precious gems, valuable art (see Mr. Picasso), in ground assets (mines, refineries, etc), and to some degree real estate – commercial, or any real estate that has easily verifiable value to virtually all market participants.

"Buy land, they aren’t making it anymore” - Mark Twain

For example, a beachfront property with great privacy and a lovely home is intrinsically valuable, if simply because the home has value as shelter (at a minimum), and the land, the beach, etc. has value because it is very difficult (if not impossible, in some cases) to reproduce. As the oft quoted Mark Twain opined: “buy land, they aren’t making it anymore”.

This is particularly true when the “land” has a component to it that the market regards as very rare (oceanfront, large size, privacy, views, etc).

Clearly, this value in the “LandVest” portion of the residential market varies over time, but unlike parts of the equity markets that in recent months collapsed completely (General Motors, etc. ), the LandVest portion of the high end residential home market has seen a continued pace of record sales.

LandVest Second Home Record Sales Map 3.25.10

LandVest Second Home Record Sales Map Q1 2010

As the above regional map displays, the “record sale” market (the highest residential sale price paid in a particular town) in second home market locations (urban market towns excluded) has seen activity through many broader market fluctuations. Most recently, record sale activity continued throughout 2007, 2008, 2009, and 2010, when other sectors of the economy were crashing in value, or experiencing extreme volatility, or locked up by the inability to secure credit. Has there been some value erosion in the above referenced markets? Yes, clearly. We have seen a dip in prices in our markets (as detailed elsewhere in this blog) of anywhere from 10-35% overall, depending on the asset and location, but the somewhat startling observation from the above data is that sales activity of these type of properties did not dry up completely or crash when other parts of the real estate market were declining rapidly, or in some cases virtually stopped. The conclusion would appear to be that if a property is truly perceived to have a rare enough component, it will retain value (at varying degrees), and will trade even when overall market conditions are poor.

So can the high end second residential home market be included in the “hard asset” discussion? Can a buyer of the hard asset class be motivated by some of the same motivations and requirements whether that purchase is a piece of art, a piece of gold, or a piece of rare real estate? It would appear that judging by history it can.

Bootjack Ranch, in Pagosa Springs, CO sells for 46.5 Million - Reportedly the highest price paid for a single-home/estate in the US in 2010

Codman Point, Record Sale for Wareham, MA

Jerry Heller and Terry Boyle's 2009 sale sets record as the highest reported price paid for single-home/estate in Wareham, MA

For more information about rare real estate finds in and around coastal Massachussetts, contact Terry Boyle (Tboyle@landvest.com).

Visit www.landvest.com or Click Here to Search LandVest listings for Rare Real Estate Finds

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Mar

Vermont Review and Outlook
By LandVest

This entry is brought to you by Ruth Kennedy Sudduth (rsudduth@landvest.com), Wade BC Weathers (wweathers@landvest.com), Story Jenks (sjenks@landvest.com) and Jon Weber (jweber@landvest.com) who have been assisting and advising buyers and sellers of fine homes throughout Vermont.

Signs Of A Winter Thaw In High-End Real Estate…
After freezing up in late 2008, the high-end real estate market gradually began to thaw toward the end of 2009. There was so little activity for most of 2009 that it was hard to know where the market was. As volumes recovered, clearing prices became apparent. Location and quality were paramount. Second-tier land in country house markets near New York City saw price decreases near forty percent in 2009. For example, a 200± acre property near Millbrook, New York, was on the market for $18,000/acre at its peak, and ultimately sold for $9,500/acre. Many second home markets in New England, and on Nantucket and Martha’s Vineyard saw price decreases up to 50%. The most solid market in our sphere was the $2 million range primary home suburbs of Boston with good schools- down 10-15%.

Vermont Sales
The number of Vermont sales over $1 million dropped to 54 in 2009, versus 90 in 2008, and 118 in 2007. Vacation properties—ski resorts, lakefront and concentrated areas of high-end homes, such as Woodstock and Manchester—were most affected. Sales are going through at big discounts to tax assessment values which have not been revised from “old market” valuations. LandVest appraisers find that pricing at the high end is down about 25% from peak; for example:

McNeil Tavern - Sold

A lovely restored tavern on Lake Champlain that sold for $2.225 million in 2006 resold in June of 2009 at $1.7 million.

A big, newer house on the Killington side of Woodstock that sold for $7 million in 2007 and resold for $5.4 million in fall of 2009. (more…)

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Mar

Survey suggest skeptical opportunism and cautious behaviour among buyers and sellers of high-end real estate.
By LandVest

This entry is brought to you by Ruth Kennedy Sudduth (rsudduth@landvest.com) who has been assisting and advising buyers and sellers of fine homes throughout New England and frequently, at her clients request, well beyond.

Recently my team conducted an informal survey of our clients to gain greater understanding of the mindset of clients who are looking to purchase properties, and clients who are looking to sell their real estate assets. The findings showed (more…)

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Feb

Midcoast Maine Market Perspective
By admin

Midcoast Maine Market Perspective
First Quarter 2010
The new year has begun with subtle signs of encouragement and indications of renewed activity, although the upper end of the Maine waterfront real estate market remains quiet.

As we look back at sales of properties priced at $1,000,000 and up over the last 5 years, it’s clear that the market peaked in 2007. The next year brought a steep decline in the number of sales (2008 sales down 36% from 2007) and still another drop (down 20%) in 2009.

Sales in this market are still primarily price-driven, with buyers expecting deep discounts from list price, though truly exceptional properties in the very best locations are selling at lesser discounts. We have not had enough sales at the top of the market for anyone to know exactly what impact the slump has had on values, but it’s safe to say that the expectations generated by the market in 2006 are now unrealistic. The biggest challenge now at all levels of the market, but most emphatically at the upper reaches, is a distinct lack of demand. Even though there has not been a huge buildup of inventory (far less than many would expect, in fact), there are still very few buyers. We do expect demand to start picking up as buyers get restless. There is a point at which their impatience and their desire to be in Maine overrides any concerns that the market hasn’t yet reached bottom.
(more…)

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Aug

Midcoast Maine Market Perspective
By LandVest

Today’s blog entry is brought to you from LandVest – Camden, Maine by Terry Sortwell -Regional Manager/Principal and Shannon Thompson -Project Manager.

Midcoast Maine Market Perspective
Second Quarter 2009
There are encouraging signs in the wider financial and real estate markets, and we feel confident that the Maine coastal markets will recover from this extended downturn with strength and vigor. Demand remains low for the time being but inventory of quality properties for sale at the top end of the market has remained relatively stable, with only a modest increase over the last year. The Maine coast continues to be an attractive option for vacation home buyers, and all indications are that there are able and willing buyers on the sidelines, knowledgeable people who remain interested in Maine Waterfront real estate and are ready to purchase property when the time is right.

Our primary question of last quarter remains unanswered: just when these buyers will step back into the market. There are two themes we’re hearing from buyers: 1) they don’t want “to do anything stupid” and are proceeding extremely cautiously, waiting out uncertainty; and 2) they’re seeking deep discounts on all but the very best, most desirable and unusual properties. Value is difficult to establish in the current environment—difficult for us as brokers, difficult for appraisers, and difficult for buyers and sellers. There have simply been too few sales, especially at the upper end of the real estate market, to clearly understand what effect the financial downturn has had on value.

Market activity indicates that we’re very likely at the bottom of this downturn. Looking at the coastal communities from Boothbay to Blue Hill, there have been just 8 sales this year to date of residential properties priced at $1,000,000 and above. (There were 21 sales in this range between January and August 2008.) The very few properties that come on the market in the most sought-after locations, if priced realistically to capture serious buyers, are selling relatively quickly and at a lesser discount. Maine coastal properties have long represented good value, and perhaps never more so than right now, with strong and appealing inventory, appropriate listing prices, and motivated sellers.

All properties benefit from wide exposure to the market. LandVest launched our new website this quarter, with expanded property pages, mapping features, and greatly enhanced visibility on the web. Many of the improvements are just being rolled out, with more to come, but already our web traffic is improved, helping ensure that all of our listings are represented in their best light and visible to anyone seeking a special and distinctive Maine property. Of the properties that sold statewide at the top of the market during the last year, more were listed with LandVest than with any other agency.

Thank you Terry and Shannon.
Below you’ll find a selection of extraordinary Midcoast Maine Real Estate Listings. For more, click on Properties for Sale, and select Midcoast Maine. For details on the below properties for sale, click on the property image.

Kelmscott Farm, Lincolnville, Maine

Gray Rocks, Camden Maine

The Moxie Farm, Friendship, ME

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