Housing Market Slowdown

[LIforrelaxin]

Covid really messed up the housing Market, especially for second home properties, in remote areas..... Because there was an exodus of people trying to get out of the cities, and into more desirable full time locations where they could have fun, prices on lake properties sky rocketed. People where getting top dollar, now some of the "new" owners, want back out of what they bought into... The problem is they can't get out, unless they get top dollar. Hence properties are sitting on the Market longer, until someone comes along that has the money to waste..... Its a vicious cycle.....

Add on that the problems that are being seen on Winnipesaukee, indicating that the lake health is declining.....Honestly if I was going to invest knowing what I know about the lake, I would be looking else where.... if someone asked me about buying on the Lake, I would also advise them to be cautious...... I have a friend who's parents just decided to sell, and I am waiting to see how it goes for them.... As many have they built a home that would house all the kids and Grandkids..... of course they where never all up there... and now that the Grandkids are in college and no longer have time for Grandma and Grandpas lake house it isn't getting used.....

[MeredithMan]

Originally Posted by LIforrelaxin

Covid really messed up the housing Market, especially for second home properties, in remote areas..... Because there was an exodus of people trying to get out of the cities, and into more desirable full time locations where they could have fun, prices on lake properties sky rocketed. People where getting top dollar, now some of the "new" owners, want back out of what they bought into... The problem is they can't get out, unless they get top dollar. Hence properties are sitting on the Market longer, until someone comes along that has the money to waste..... Its a vicious cycle.....

Add on that the problems that are being seen on Winnipesaukee, indicating that the lake health is declining.....Honestly if I was going to invest knowing what I know about the lake, I would be looking else where.... if someone asked me about buying on the Lake, I would also advise them to be cautious...... I have a friend who's parents just decided to sell, and I am waiting to see how it goes for them.... As many have they built a home that would house all the kids and Grandkids..... of course they where never all up there... and now that the Grandkids are in college and no longer have time for Grandma and Grandpas lake house it isn't getting used.....

I think your first paragraph about RE prices spiking due to the 'Vid is spot on. It was a feeding frenzy 5 yrs ago, with many stories of folks selling everything to move to the lake and pay cash for waterfront properties because, "now we can work from anywhere". And waterfront properties are definitely sitting longer and people are loathe to lower the price for the reasons you pointed out. There's a waterfront rental near me that has been a rental forever...big groups every week for years. The place is old and tired, yet it was listed for over $3M and has been on the market for months.

On the other end of the spectrum, however, is another waterfront near me...very large high-end house...never a rental. That sold for $6M relatively quickly at the end of last year and then the buyers had workers in there for 6 months or so. I assume they gutted it head to toe, as there was a huge roll-off dumpster in the driveway all that time that was regularly filled and emptied.

A friend who is a RE agent who only sells waterfront described the current market as "unpredictable".

[John Mercier]

Certain locations on the lake are better than others.

[winterh]

Originally Posted by John Mercier

Certain locations on the lake are better than others.

This has a lot to do with homes you see sitting on the market. Especially at the higher price points buyers can have it all and there is more to it than a nice house

[John Mercier]

Originally Posted by winterh

This has a lot to do with homes you see sitting on the market. Especially at the higher price points buyers can have it all and there is more to it than a nice house

They rebuild the houses.

Building and renovation hasn't slowed a bit.

But they can't change the location. And unlike a few years ago where they bought anything and if a better location opened they would trade up; they now know that even if that location opens up... selling the current one that you bought in a rush for fear of losing out may sit on the market for a long time.