May 31, 2018
Luxury listing in Vermont. Image credit: Sotheby's.
Luxury real estate prices in Rhode Island and Vermont are experiencing significant price dips this spring, but Maine is seeing fast rising increases in both traditional and high-end sales.
In terms of New England real estate, Massachusetts’ luxury prices have remained the steadiest with an increase of only 4 percent in pricing. Maine saw a jump of 10 percent in both luxury and standard market housing prices, making it the state with the biggest growth, according to Re/Max New England’s 2018 Spring Market Trends Report.
"In the current New England real estate landscape, with many buyers losing out on their desired properties due to fierce competition and rising prices, it is imperative that we fully understand the markets and provide our clients with meaningful and actionable insights," said Fiona Petrie, executive vice president and managing director of U.S. operations at Re/Max Integra, New England.
Luxury in New England
Portland is supporting the growth in Maine, as many buyers are seeking second homes. This strays from the norm in regards to cities.
In luxury sales alone, Maine saw a 13 percent increase in prices, reaching an average of $1.7 million. The Greater Portland area has an average price of $1.5 million.
While Maine saw the steepest growth, Massachusetts saw the highest prices overall. This is likely due to Boston’s big city status but with competitive pricing when pitted against similar cities such as New York and Boston.
Luxury Portfolio listing in Boston. Image credit: Luxury Portfolio
The average luxury home price in the Greater Boston area is $1.6 million. The North Shore area is similarly priced but slightly higher with an average of $1.7 million in luxury homes.
Martha’s vineyard and Nantucket are the highest priced areas for luxury in Massachusetts with an average price of $2.0 million. Cape Cod follows at a $1.9 million average.
Connecticut is seeing steady growth in luxury real estate, with a jump of 7 percent compared to this time last year, as average prices grew from $1.7 million to $1.8 million.
New Hampshire has also seen an increase of 7 percent in luxury with more buyers coming from Connecticut and New York looking for retirement properties.
Rhode Island’s luxury market has not been faring as well as its counterparts, with a steep drop in price at 30 percent. The average price in luxury real estate dropped from $2 million to $1.4 million in just one year.
Property listed in Rhode Island for $18 million. Image credit: Sotheby's
While Vermont did not have as severe of a dip in price as Rhode Island, it still saw a significant 8 percent sales decline from $1.5 million down to $1.3 million.
Additional real estate
Luxury home prices overall were up significantly in the first quarter of 2018, thanks to shrinking supply at the end of last year.
According to a new report from Redfin, luxury home prices shot up by just under 8 percent in the last quarter. The prices now sit at an average of $1.8 million, significantly higher than at the end of 2017 (see more).
In 2017, international luxury homes sales had their best annual growth rate in three years.
According to another report from Christie's International Real Estate, luxury home sales around the world were up 11 percent this past year, significantly better than in previous years. This growth was buoyed by a number of factors both political and economic (see more).
"We strive to know exactly what is going on in our markets so we can be the best resource and steward for our clients, whether they are buying or selling," Ms. Petrie said.
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