People and Property: Real Estate and Construction News From Around NH

Meredith voters send short-term rental amendment back to drawing board

Voters at Town Meeting rejected a proposal that would have added additional regulations to operators of short-term rentals.

The proposal, which was shot down by a vote of 283 to 348, sought to distinguish between owners who resided at the property and owners who resided elsewhere. Those who lived on-site would have been limited to 120 rental days per year, while those who lived off-site would have only been permitted to rent that property for a maximum of 90 days per year. The proposal also sought to ensure certain life-safety measures and establish occupancy limits. The plan was developed by a committee convened by the planning board.

Meredith, like many towns in places suitable for vacationing, has been buffeted by the trend of short-term rentals, the profitability of which has drawn investors who own and operate several homes, as well as individual property owners who see an opportunity to leverage their home. In a recent survey, residents described the effect of this trend as threatening the character of their town, as well as driving up property values.

Selectboard member Lynn Leighton, who was re-elected by voters this week, agreed the situation needs better management.

“I think it needs to be addressed,” she said, though it wasn’t clear why voters opposed the work of the committee. “Going forward, I don’t know what that looks like … I will say that the time and effort that the entire committee put forth was exceptional, they really took the time to try and think about everything. So I’d like to thank them for all their time that they put into trying to make something work for short-term rentals.”

She said she would like to hear from the members of the short-term rental committee before considering the town’s next move.

“As I’ve said before, the rearview mirror is always smaller than the windshield. Let’s try to do great things for our community. I want to listen to those community members,” Leighton said. “Being transparent, I’m always willing to listen to anyone.”

In other voter action, the town’s operating budget of $18.7 million was approved, as was a three-year collective bargaining agreement with the local Town and State Employees Association of NH. Voters also agreed to fund the hiring of six new full-time firefighters and one part-time administrative position at the fire department.

Voters rejected petitioned warrant articles that sought to impose a tax cap, to establish a budget committee, and to remove electronic ballot-counting machines. — Adam Drapcho, Laconia Daily Sun

Sherri Mercurio

Sherri Mercurio joins Badger Peabody & Smith Realty

Badger Peabody & Smith Realty recently welcomed seasoned real estate agent Sherri Mercurio to  their North Conway office.

“I am looking forward to helping clients and customers in the area, and making the Granite State my forever home.” She added, “I’ve had the opportunity to rehab and flip homes, purchase profitable vacation rentals as well as deal in wholesales, bank owned properties and short sales. I look forward to assisting others in their real estate journey.”

Mercurio has been awarded a number of real estate designations over the years including Graduate of the Real Estate Institute (GRI), Accredited Buyers Representative (ABR), Certified Residential Specialist (CRS) and more.

Vice President of Sales Brendan Battenfelder said, “Sherri is a welcome addition to our team of agents. She has a strong real estate background which will benefit the sellers and buyers who work with her. In addition, since we work as a team, she’ll be a great resource as well for her colleagues and visa versa.”

2024 housing market outlook: Will prices continue to rise?

The spring selling season will soon be underway for the U.S. housing sector. Here are our reflections on the lethargy that beset the market in 2023 and our forecast on whether activity will pick up in 2024:

A look back at 2023

Existing home sales were the lowest since 1995

Existing home sales dropped 19% last year as mortgage borrowing costs were at more than 20-year highs for much of the year, according to the National Association of Realtors (NAR). Despite the sharp decline in sales, average selling prices ended the year modestly higher. According to the Federal Home Finance Agency (FHFA), home prices closed 2023 with an approximate 5% gain.

New home sales see strong performance

New home sales, however, performed much better than existing homes in 2023, as builders offered incentives and bought down mortgage rates to stimulate demand. Overall, new home sales were up 5% last year, according to the Census Department. Median selling prices, however, were down 7% year over year. The decline is largely reflective of sales mix and the aforementioned discounts available to prospective buyers, in our view.

Low inventory continues to support strong prices in 2023

Last year’s increase in average prices — despite the large decline in sales — is a dramatic departure from the experience seen during the housing bubble crash of 2007 through 2009. It also is at odds with basic economics: Typically, prices decline when demand goes down.

The divergence is largely a function of the U.S. economy’s very tight supply of homes available for sale. Last year, there were fewer homes available for sale than at any other time in decades.
As seen in the chart below, the housing market ended 2023 with about 870,000 existing homes available for sale, according to the NAR. In contrast, during the 1980s, there were typically between 2 and 3 million existing homes available for sale (2.4 million on average from 1982 through 1989). To put this into context, the number of homes currently available for sale is less than half those prior levels despite the U.S. population being 45% larger (1980 versus 2023 year-ending).

A look ahead to 2024

Momentum improves as mortgage rates decline

Mortgage applications for the purchase of a home have accelerated in recent months as mortgage borrowing costs have come off their recent highs.

At the end of January, the average rate on a 30-year fixed mortgage was 6.6%, down more than a full percentage point from the 7.7% rate at the end of October, according to the Mortgage Bankers Association. In response to lower rates, the Mortgage Applications Index jumped more than 39% on a seasonally adjusted basis from the end of October through the end of January.