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Second homes and the NH real estate squeeze | What’s Working

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The Jay Coolt vacation condominium in Wolfeboro couldn’t accommodate a growing extended family, so a Connecticut minister bought a two-acre 3,100-square-foot cape in Wolfeboro, five minutes from Brewster Beach. ..

He wrote a “hearty” letter to the seller-a mixed family with kids-I think he made a difference in getting a three-bedroom home for $ 790,000 above the asking price in April. ..

What’s working

“When it first hit the market, I went there and offered an offer before my wife saw it,” said Kuhrt, a retired IT executive who took up the position of Rev. Care five years ago. (67) said.

Out-of-state residents who are still anxious for parts of New Hampshire, experts say, are driving out locals in need of a mortgage to buy primary, secondary, or investment homes. , Putting more pressure on record home prices.

According to New Hampshire Homes, sales show that this year, less homes are sold outside the state than in 2021, but non-New Hampshire buyers are above pre-pandemic levels.

Houses were a mixture of single-family homes, condominiums, and townhouses. Statistics requested by New Hampshire Union Leaders show a similar trend in 2021, with the percentage of sales considered a second house declining year-on-year, but still rising during the pre-pandemic period. I am.

The figures that indicate the purpose of use of the property include only those purchased with a mortgage and include statistics based on the data collected by the lender. Cash-only sales are not included. That is, these homes cannot be classified as primary homes, secondary homes, or investment properties.

Summer winter harbor

Holidaymakers jump on Fridays at Walfeboro’s Winter Harbor on holiday weekends. Carroll County, which includes Lake Winnipesauke’s Wolfeboro and Moltonborough, Conway and other Mount Washington Valley towns, has the highest share of second home sales in the state.

In 2021, full cash transactions accounted for 3,966 purchases, or 19.5% of all transactions, according to Heather McCann, Head of Home Research for New Hampshire Homes. This is higher than the 2,977 purchases in 2020, at 14.6%. However, 2018 figures both indicate a full cash purchase of 5,525, accounting for 24.1% of total sales.

During the pandemic, some realtors interviewed said they were working with more cash buyers who often moved from more expensive states after selling their homes.

Second home hotspot

Ben Frost, Deputy Managing Director and Chief Legal Officer of New Hampshire Housing, said he does not believe the pandemic has changed the market.

“It has accelerated some existing trends,” Frost said last week. The 2021 numbers are “not really moving in any particular direction.”

“We certainly heard about the flood of buyers, especially from Massachusetts,” Frost said.

The percentage of Massachusetts residents who bought homes in New Hampshire went from 14.9% in 2019 to 17.8% in 2020, 19% in 2021, and returned to 15.8% in the first four and a half months of 2022. I did.

They are a mix of single-family homes, condominiums and townhouses.

“Most of the time, New Hampshire homebuyers come from New Hampshire,” Frost said.

According to New Hampshire Homes, California had the highest number of residents buying homes in New Hampshire during the first four and a half months of 2022, following New Hampshire and Massachusetts.

Maine and Florida have closed the top five. Connecticut was in 7th place. These rankings include full cash and mortgage sales.

Since the end of 2020, clerk in the state’s longest-serving town has seen many people from other states arrive at Wolfeboro.

“The influence of new people coming to Wolfeboro from New York, Connecticut, Massachusetts and New Jersey was huge, to name a few,” said Patricia Waterman, a town clerk for more than half a century.

She said that some people who had previously spent the summer there have made it their permanent home.

Buyer challenges

Buyers today are facing record price and interest rate rises.

Ben Cushing, president-elect of New Hampshire’s National Association of Realtors, said:

Assuming Freddie Mac’s current interest rate of buying a mortgage and repackaging it to investors at 5.7%, a 30-year fixed mortgage would be $ 380,000 for $ 2,206 per month.

That’s $ 608 more per month than it was a year ago when the prevailing interest rate was 2.98%.

“We’re starting to look at some of the reduced segments,” said Cushing, Upper Valley Regional Manager at Four Seasons Sotheby’s International Realty in Hanover.

The supply of available homes is another major pressure factor for buyers. Compared to May 2014, the state’s market has 88% fewer homes, just 1,589, compared to more than 13,000 eight years ago. And the median for the entire state has almost doubled in the last eight years.

Restricted zoning can prevent developers from getting enough unit density to make it economically viable to build condominiums and townhouses, Frost said. Significant rises in labor costs and construction materials have also raised house prices.

Investment property accounted for 6.42% of all homes sold in 2021, higher than just before or during the pandemic.

The housing market has a significant impact on the state’s workforce as businesses seek to attract and retain workers.

“If there are no items on the market for either buying or renting, it will be very difficult for them to carry out their work,” Frost said.

He said he had heard of people who “accept jobs, but ultimately have to decline because they have no place to live.”

Property Blur-Use Lines

Carroll County, including Conway and Wolfeboro, had the highest proportion of second houses in New Hampshire (44.34%). Hillsborough County, home of Manchester and Nashua, saw the lowest share (1.66%).

Adam Dow said the market is not so clearly segmented.

“You had a house and a villa, which is now blended,” said Dow, CEO of the Dowry Realty Group at Keller Williams Realty, which covers the northern coast.

He sees the second house as an investment.

“Many investment properties are traditionally floating properties that many residents have lived in all year round, and competition is intensifying and prices are rising,” says Dow.

Sarah Holland & Co in Plymouth. According to Sarah Holland, a broker, the market for renting places in the summer or winter became more competitive during the pandemic.

“In the normal years before the pandemic, you can’t just pay the rent and compete for the rent,” Holland said. Those who have been considering renting since the pandemic “will give up the crazy numbers and provide an incentive to become the lessor of choice.”

That meant that some vacationers chose to buy a villa instead of rent, Holland said.

A report from Harvard University entitled “National Housing 2022” describes the soaring housing prices across the country and their root causes.

“Increased sales of second homes and villas have reduced housing options for full-time owners, especially in rural areas,” the report said.

“Redfin’s Second Home Demand Index saw a surge of more than 80% in second home demand in mid-2020, well above the growth in demand for primary homes, and at least 50% above pre-pandemic levels by February 2022. Shows. “

The share of the second house sold in New Hampshire decreased slightly in 2021 compared to the previous year.

“That’s not as much as people think,” Frost said.

Summer winter harbor

Holidaymakers jump on Fridays at Walfeboro’s Winter Harbor on holiday weekends. Carroll County, which includes Lake Winnipesauke’s Wolfeboro and Moltonborough, Conway and other Mount Washington Valley towns, has the highest share of second home sales in the state.

Discovery of Granite State

“I saw a lot of people coming out of the big cities,” said Cushing, a member of the National Association of Realtors in New Hampshire, during the pandemic.

“They were buying all the real estate, and it pushed up all the prices,” he said.

Some people who can’t take a vacation have decided to buy a villa instead, according to Cushing.

People who buy a second home “hurt the primary home buyer,” he said.

Kuhrt gained a competitive edge when Wolfeboro’s home was said to be on the market.

“It’s just a place big enough to fit my whole family,” Kuhrt said. “There are four bathrooms. Are you dreaming of having four bathrooms?”

Doggie holiday

Family puppies Jack, Left, Toby are playing in the front yard of Jay and Robin Coult’s second home in Wolfeboro.

“The market was crazy,” said Quat, represented by buyer agent Martha Trepanier, who earned $ 80,000 more than he expected when he sold a condo he had owned for nearly 20 years.

“It actually helped me in investing enough money to buy this house,” he hopes to be his main residence with his wife Robin soon next year. Kuhrt said.

But Kurz has nothing that many townspeople do. It’s a boat.

“But I have friends,” Kuhrt said.

What’s Working, a series of exploring solutions to meet the needs of the New Hampshire workforce, is sponsored by the New Hampshire Solutions Journalism Lab at Nackey S. Loeb School of Communications and funded by Eversource, Fidelity Investments, New Hampshire Charitable Foundation and Dartmouth-Hitchcock Medical. doing. Center, New Hampshire College & University Council, Northeast Delta Dental, New Hampshire Union Business and Education.

Contact reporter Michael Cousineau [email protected].. To read the story of the series, visit the following website: unionleader.com/whatsworking..

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