Some months ago, I calculated the Absorption Rate for Condotels throughout the Loon Mountain region using four (4) developments within the communities of Lincoln and Woodstock, NH. Today, I've run those same numbers once again, and was so pleased with the results, I simply had to share them here. For those of you wondering...
A Condotel is just a shortened term used to represent Condos that are rented in a fashion similar to that of a hotel. Those used here are all 100% Full (year-'round) ownership, and simply make onsite/overnight rentals available to their owners to help offset expenses for those interested. As a matter of fact, having actively manned the "front-of-house" operations for 3 of the 4 developments I chose to poll, I know - first hand - that all four of those used in my calculations are what I refer to as "Like-Type" properties, allowing for a true "Apples-to-Apples" basis for comparison. As far as that 4th development is concerned, I am intimately familiar with their staff, management, and general operations.
An Absorption Rate, by the way, provides us with an indication as to the pace at which properties are selling in a particular region. As many of you may already be aware, a Six (6)-Month Supply is considered balanced. If property-inventory dips below the 6-month mark, many consider it to be a "Seller's Market" whereas a property supply of greater than 6-months typically reflects a "Buyer's Market". Now, with all that in mind...
When my initial computations were run some months ago, the Lincoln & Woodstock, NH communities had approximately 24-month's of "Condotel" property inventory to exhaust. I suspect this comes as no big surprise to those of you reading this entry, especially in light of the current economic conditions that are - admittedly - at least partially attributable to the mortgage market. At time of entry though - and again, just a few short months later - our Loon Mountain communities now find ourselves at just over a 16 month supply! Granted, based on the facts presented above, this is still far from ideal. It is, however, a clear indication that the Housing Market is improving here in Lincoln & Woodstock New Hampshire!
I do use the general "housing" term (as opposed to specifying "condotels") for a reason too. Simply click on the link provided (below) for further Good News as relates to Single-Family Residential Homes. Using figures obtained from the Northern New England Real Estate Network (NNEREN or our MLS), the New Hampshire Association of Realtors have put together several, indisputable, Statewide and County Specific lists of 9-Year Data, covering from 1998 - 2007. Since it is home to the Loon Mountain communities of Lincoln & Woodstock, I ask that you turn your attention to Grafton County when convenient. As mentioned in the link/web address introduction: "most importantly it is a picture that is based in actual data rather than speculation."
Here's that link:
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