Builder Newsletter | October 2020 |
|
A Message From
Your Sales & Marketing Team
|
Beautiful fall weather and the rescheduled Pats game brought the buyers out for this years Fall Festival of Homes. With over 25 open houses, two print ads, and boosted social media posts, our agents saw excellent turnouts at almost all off our communities and had great participation in our giveaway raffle. Despite the challenges 2020 has thrown at us,
the event was a huge success with over 95 groups through our open houses! Our largest turnout was 13 groups through a single open house!
Our next campaign, Home for the Holidays, is fast approaching! From November 1st through January 1st, we'll be focusing on homes that can be ready in 60 days or less, so buyers can be “Home for the Holidays”!
|
|
In other exciting news, we are thrilled to announce that we will be getting a brand new custom website with all the bells and whistles coming in January 2021! Over the past few months, we’ve explored many options and have officially started working with a custom web designer to build the website we’ve always dreamed of. The new site will embody a fresh, modern style that perfectly blends all aspects of our real estate business. We have a ton of cool features in the works like interactive elements, a new and improved lead system, refreshed content, and so much more! We are so excited to work on this new website and can’t wait to show it off! |
|
|
|
Stratham | Portsmouth | Dover | York
|
|
Fed is committed to low rates until 2023
The Federal Reserve’s most prominent committee, the FOMC, recently adjourned its September meeting and it reinforced its long-term strategy of keeping rates low for years — until at least 2023.
The rate-friendly stance is a boon for mortgage shoppers. While the Fed doesn’t affect mortgage rates directly, its sentiment permeates the entire economy and helps all interest rates drift lower. The coronavirus pandemic made the group ultra-accommodative to low-rate policies to help boost the blind-sided economy.
The Fed is willing to let its policies drive inflation above 2% for extended periods — a break from its staunch two-percent-max goal. That means it will keep rates low even after it sees solid signs of inflation. For the average U.S. consumer, that means you’ll likely have access to ultra-low rates for years. There’s not a huge rush to buy or refinance a home before you’re ready.
But if you are ready, it’s a fantastic time to lock in. It seems stars are aligned for favorable rates.
October 5th's Rates
- 2.75% for 30-year fixed
- 2.375% for 15-year fixed
- 2.75% for 5/1 ARM
|
|
The Gove Group's September 2020 Stats |
|
Overall Stats for September
- 63 homes went under agreement in September
- 34 of the homes under agreement were new construction
- 27 of the homes under agreement were resales
- 16 of the homes were condominiums
- 0 of the homes were a rental
- 2 of the sales were land
- 9 of the sales were in a 55+ community
- 3 of the home sales were $350,000 or less
|
|
|
|
 |
Our Own Buyers Came From
- 2 from Londonderry, NH
- 1 from Candia, NH
- 1 from Derry, NH
- 1 from Epping, NH
- 1 from Windham, NH
- 1 from Boxford, MA
- 1 from Charlestown, MA
- 1 from Medway, MA
- 1 from Middleton, MA
- 1 from Ogunquit, ME
- 1 from Bellows Falls, VT
- 1 from Zionsville, IN
|
|
|
|
New Construction Sales
- 6 in Brentwood
- 4 in Dover
- 4 in Exeter
- 4 in Kittery
- 3 in Epping
- 3 in Wells
- 2 in Kingston
- 2 in Londonderry
- 2 in Stratham
- 1 in Greenland
- 1 in Rochester
- 1 in Rye
- 1 in Sanford
|
|
|
|
|
Home sales in Rockingham & Strafford County fell 5.7% from last month which is the smallest August to September decline we have seen since 2015. September’s 747 sales were 21% higher than September of 2019 and are the most sales in the month of September since the 764 in September of 2015. What makes this even more impressive is that it is happening in such a prolonged period of historically low inventory. Active inventory remained at the same level as last month increasing only one unit to 704 active units which is 56% below where we were at this time last year when there were 1,588 active units. The disparity between active listings and those under agreement held steady this month with 1,496 under agreement units which is still almost double the amount of active units, when in a normal market, that would be reversed. With the total under agreement units remaining above 1,400 for the fourth consecutive month we expect to continue to see strong sales numbers through the fall. |
|
|
|
Average home sales price in Rockingham & Strafford County set an all-time high for the third time in the past four months coming in at $446,937 which was just slightly higher than last month’s $442,992 record. The average sales price for September was a 15% increase over the $388,095 figure for September 2019. As it has been for over a year now, active inventory continues to be the driving force behind the high sales prices. With much of the new inventory that comes on the market going under agreement within a few days, the current month’s supply of inventory for Rockingham & Strafford County remains at its all-time low of 1.2 months. As we enter into the late fall/early winter we don’t expect inventory to rise much as this is a time of year that sees a drop in new listings come on the market in normal conditions, but we now have the added uncertainty of the COVID pandemic as well. |
|
|
|
The Gove Group Update from Scott |
|
The craziness continued in September! New contracts to purchase homes were up 200% from a year ago. September actually turned out to be the 2nd busiest month for new contracts in the history of the company.
Price point does not seem to matter as we are seeing strength in every segment of the market. We are also seeing a continuation of the upward pressure on pricing. House flipping is becoming more common again. We find ourselves in a market where it is hard not to make money as asking prices seem to increase monthly.
The primary issue going forward is a severe shortage of subcontractors.
Build times are now being pushed out 12 months or more and many buyers are unwilling to wait. Price increases on materials along with long wait times are also helping to push prices up. On the plus side interest rates are extremely low enabling buyers to afford much more home than they were able to just a year ago. We continue to advise our clients to put under contract any lots or developable land that pricing makes sense. We anticipate another surge in land/lot prices by spring.
At some point this all has to end, but as long as the economy stays strong and inventory at such low levels, we see this as several years out. Once interest rates begin to climb upward we anticipate that “for sale” inventory will start to grow.
Below are the latest numbers;
- Active standing new construction is down 15%
- Pending new construction sales are up 15%
- 12 month rolling solds are up 10%
- Active resale listings are down 40%
- Pending resale sales are up 5%
- 12 month rolling solds are down 1%
|
|
|
|
The Gove Group Real Estate, LLC
70 Portsmouth Ave, Stratham, NH | 603.778.6400
952 Post Rd, Unit 2-9, Wells, ME | 207.618.5000
|
|
|
|
|
|
|
