Maine Real Estate Info

 MREIS - SALES UP 6.74% IN AUGUST: In a press release to the media today, MREIS reports that for the second month in a row, sales of single-family existing homes in Maine have increased.  According to MREIS, 1,425 homes sold across the state during August 2007 - a 6.74% jump from last August’s total of 1,335.  The median sales price for those homes remained unchanged at $195,000. The median sales price indicates that half of the homes were sold for more and half sold for less. Nationally, sales of single-family, existing homes dropped 13% since last August.  According to NAR, buyers paid a median existing home price of $223,900, a figure that is essentially the same as last year. NAR also reported sales in the regional Northeast were down 5.7% from one year ago.  The median sales price in the area rose 3.6% to $282,300.  Complete press release posted at http://www.mainerealtors.com

What Women Want in a House
North Carolina home design specialist Marni Jameson outlines the basic features that appeal to women in today’s homes.

• Bigger kitchens. At least 300 square feet that open onto other living spaces and include an island

• More bathrooms. And they want the bathrooms bigger than they used to be with two sinks and a separate tub and shower.

• Closets, closets, and more closets. Walk-in closets are a must in the master, and nice in secondary bedrooms. A wall closet is a welcome mudroom addition.

• Smaller living room. Today’s living room is a parlor, big enough for just a few people. The best floor plans adjoin living rooms and dining rooms, so when people need the space, they have it.

What do Maine women think? Are we following the same trends that are seen in North Carolina?
Source: The News & Observer, Marni Jameson (09/08/07)

Green building and design. Increased pressure on communities and businesses to promote environmentally sound designs has led developers to incorporate green elements into their projects. A plan to develop a parcel of land for retail might include green roofs, rain gardens, or gutter water retention and irrigation systems. LEED-certified environmental experts soon will become “must-have” team members as demand for energy efficient, healthy spaces grows stronger.

Giffels-Webster Engineers, a civil engineering firm in suburban Detroit, identifies five top trends in real estate and development.

The four other trends include:

• Assisted living centers. Assisted living developments are on the rise due to higher life expectancies and the influx of aging baby boomers. By helping seniors lead independent lives in noninstitutionalized environments, these projects are designed to incorporate nature trails, community dining, exercise facilities, music rooms, libraries, salons, and game rooms. Opportunities exist to work with both private developers and public government-funded projects.

• Hospital expansions, education campus additions. The hospital and education expansion trend is fueled by institutional projects being funded privately though corporate gifts and individual endowments. These “recession-proof” resources mean even during economic downturns, the market segment moves forward with plentiful building and capital improvement projects.

• Mixed-use developments. Mixed-use developments are growing popular today because they reduce risk. Retail and residential can adjoin each other, and it’s common to see large, national retailers combined with smaller, boutique-type stores, as well as housing varying by size, budget, and amenities. With this approach, the developer’s investment is spread across the spectrum so it remains viable even if one segment does not perform as expected.

• Urban revitalization. To attract and keep people in their communities, municipalities and townships are working to make their downtowns, retail hubs, and central business districts more inviting and accessible. Streetscape improvements, including attractive landscaping, decorative streetlights, brick sidewalk pavers, and strategically planned parking areas, are examples of how municipalities are proactively transforming their space to appeal to potential and current residents.

Source — REALTOR® Magazine Online

In 2006 our local market began to slow, causing many buyers to postpone buying hoping that prices would drop.   This causes an increase in inventory.  When supply increases and demand decreases, the market is described as a “buyer’s market”. 

 In some areas of the country and in some segments of the market, prices have declined. However, in other high demand market predominately in the western part of our country prices have actually increased compared to a year ago, mostly for upper end properties.

Mass psychology influences home-buying patterns. For example, when buyers decide that it is not a good time to buy due to fear of falling prices or rising interest rates, this has a tendancy to create a self-fulfilling prophesy. When the number of home selling drops, buyers tend to hold back. When sales increase again, buyers perceive this as a good time to buyer.  In these conditions, buyer feel they should buy immediately before home prices rise, interest rates go up and they can’t afford the home they want.

Buyers tend to follow the herd, which is really very counter productive.  In my opinion, the best time to buy would be when there isn’t alot competition from other buyers.  Most home buyers feel more comfortable buying when alot of people they know are buying. The comfort of the masses helps validates that their decision is a good one.

Home sales go thru normal cycles.  There are up markets, down markets, and flat markets. Ideally, anyone would want to buy at the end of a down cycle, just before the prices pick up again.  It’s actually impossible to time the real estate market, by the time the down cycle has passed the market is moving up again.

In a changing market, buyers who are not sure about how long they will be living in an area may be better off rentiHere’s my best advice…Since all housing market experience normal cycles, buying a home can be risky unless you have a long-term perspective in mind. If you decide to buy at the peak of a cycle and sell soon after in a softer market, you’ll could end up selling for less than the price you paid.  Most buyers who can stay put and ride out the cycles are in a better position to recoup their investment when they sell, and possibly make a profit.

Good candidates for buying in our current local market are buyers who are ready to invest for the long run and stay put for awhile. This means two things, that they aren’t planning on moving soon and they’re buying a home that suits their long-term needs.  There is currently much less competition amoung buyers in our market.  My best advice…for the right type of buyer it’s a perfect time to buy!

If you or someone you know has an ARM that is scheduled to adjust in 2007 or 2008, please schedule an appointment with a mortgage specialist right away. Don’t let a foreclosure or default situation sneak up on you. Remember, even if the Federal Reserve does lower its Fed Funds Rate later this month (which does seem likely), the majority of these ARMs borrowers will not be positively affected or “saved” by this move. For many borrowers, a short sale or a foreclosure will be the only available option.

What is a Short Sale?
A short sale, defined as an “agreement” to allow a home to be sold for less than the amount that is owed, can be a helpful compromise for everyone involved. For debt-ridden homeowners or those who owe more than the house is currently worth, a short sale could save them some of the enormous pain, embarrassment, and major credit challenges associated with bankruptcy and/or foreclosure. For lenders, it helps avoid some of the hassle and expense of seizing and auctioning off delinquent real estate. Lastly, for potential homebuyers and real estate investors, a short sale offers a great opportunity to purchase property at a significant discount in today’s tight-fisted credit environment. Read on at….http://www.allaboutnews.com/vc.php?a=y&b=23&i=143&rs=80b2f6425c0fae123c4fd8e
Source: All About News, Inc.

On August 31, 2007, President Bush announced a new initiative called FHASecure, which will give the Federal Housing Administration (FHA) flexibility to help more families keep their homes in light of the decline of the subprime market and impending interest rate adjustments affecting numerous borrowers in both the subprime and Alt-A markets. The FHASecure program will help people who have not made all of their payments on time because of rising mortgage payments but who otherwise have good credit. NAR applauded President Bush’s statement of support for giving homeowners greater flexibility to refinance their loans through the FHA. At a white house conference call on the initiative, the administration specifically signaled out NAR for our timely support of the initiative. NAR has been advocating regulatory changes to the FHA program. On April 9, 2007, NAR sent a letter to Alphonso Jackson, Secretary of Housing and Urban Development, asking that FHA waive the requirement that a homeowner’s mortgage be current to refinance into an FHA loan product. NAR also supports legislation that would give FHA greater flexibility by increasing loan limits, eliminating the statutory 3 percent minimum cash down payment, allowing FHA flexibility to provide risk-based pricing, and revising the condominium program. Contact Jerry Nagy of the Regulatory and Industry Relations division with any questions. Read NAR’s press release supporting the announcement. Read President Bush’s remarks.

Banks Woo Borrowers Who Have Good Credit
Banks have plenty of money available for borrowers with great credit and a desire for a conventional fixed rate mortgage, says James Chessen, chief economist for the American Bankers Association.

To attract these customers, lenders are offering fee waivers, competitive interest rates, and a willingness to negotiate.

Banks like conventional borrowers because they tend to be the kind of customers that will take advantage of other products from the lender, including savings accounts, credit cards and checking accounts. “We find that someone who has a mortgage with us will have about five products in addition to the mortgage,” says Terry Francisco, a spokesman for Bank of America Corp.

To attract this kind of business, Bank of America is offering “No Fee Mortgage Plus,” saving consumers about $3,000 in closing costs, which the bank covers.

Deals like this one make it important for borrowers with good credit to shop around.

Source: The Wall Street Journal, Julian Mincer (09/06/2007)

Former guv banks on wind
Angus King is entering the wind power business.Last month, Independence Wind LLC, a company the former Independent Maine governor created last winter with Rob Gardiner, who once headed Maine Public Broadcasting Corp., erected two test towers on Flathead Mountain and Record Hill in northern Oxford County, according to the Sun Journal in Lewiston. The towers will collect wind data for six months to test the feasibility of building a 25-tower wind farm on the location.

The wind farm is still in the concept phase, but is slated to cost between $60 million and $80 million and expected to generate enough electricity to power all the homes in Oxford County for a year, Gardiner told the paper.

Source: Mainebiz Daily

North Yarmouth Maine Real Estate - 12+/- Acres in Heritage Ridge. Visit Meservier.com for more details

 JULY ONLY CHART                      

 From July 1-31, 2006 and July 1-31, 2007

County                                # Units Sold      #Units Sold            %                       MSP                       MSP                       %Change

                                               2006                     2007                     Change                2006                     2007

STATEWIDE           1196               1247               4.26%             $190,000      $199,000      4.74%

ROLLING QUARTER CHART

 From May 1, 2006 - July 31, 2006 -and- From May 1, 2007 - July 31, 2007

County                                # Units Sold      # Units Sold          %                       MSP                       MSP                       %Change

                                               2006                     2007                     Change                2006                     2007

STATEWIDE           4135               3669              -11.27%         $195,000      $197,000      1.03%
Androscoggin             313                  258                  -17.57%           $168,400        $165,000        -2.02%

Aroostook                   113                   101                  -10.62%           $85,000          $93,000          9.41%

Cumberland               976                  953                  -2.36%             $255,000        $255,588         0.23%

Franklin                      100                  79                    -21.00%          $135,000        $136,000        0.74%

Hancock                     179                  43                    20.11%            $187,000        $205,000        9.63%

Kennebec                    397                  334                  -15.87%           $155,500         $148,250         -4.66%

Knox                           151                   155                  2.65%              $215,000        $210,000        -2.33%

Lincoln                        120                  102                  -15.00%          $235,250         $237,393          0.91%

Oxford                        177                  170                  -3.95%             $143,000        $155,000        8.39%

Penobscot                   489                  437                  -10.63%           $148,000        $145,000        -2.03%

Piscataquis                  66                    60                    -9.09%            $97,486           $127,000        30.28%

Sagadahoc                  137                  103                  -24.82%          $210,000        $205,000        -2.38%

Somerset                     131                   95                    -27.48%          $112,000         $117,300         4.73%

Waldo                         112                   90                    -19.64%           $152,500         $153,675         0.77%

Washington                12                    12                    0.00%             $100,000        $116,750         16.75%

York                            662                  577                  -12.84%           $240,000        $240,000        0.00%

Source: Maine Real Estate Information System, Inc. Note: MREIS, a subsidiary of the Maine Association of REALTORS, is a statewide Multiple Listing Service with over 5,800 licensees inputting active and sold property listing data. Statistics reflect properties reported as sold in the System within the time periods indicated.

OPEN HOUSE SEARCH:  The new MREIS website will have an Open House Search function for the Public or Realtors to find upcoming open houses.  You can search an on or before date, property type, town or county, bedrooms, baths, price or MLS#.  All open houses will display with appropriate information and give you a link to the Public display of detail information on the property including listing agent, listing office and contact information.

Maine Housing’s First Home Program provides low-interest mortgage loans to help low and moderate-income homebuyers buy homes of their own – often with little or no down payment. First Home is available to first-time homebuyers and people who have not owned their own homes in the past 3 years.First Home interest rates are usually lower than conventional mortgage interest rates, so your monthly payments are lower. And interest rates are fixed, so your principal and interest payments will not increase. You can save thousands of dollars over the life of your loan. First Home Program options can make homeownership even more affordable for eligible borrowers:

Maine Housing has been a trusted source for mortgage financing for over 30 years. In 2006 alone, we provided more than 1,000 First Home mortgages at an average interest rate of 5.21%, and we provided down payment and closing cost assistance (an average benefit of $3,562) to nearly half of our buyers.

Read the rest of the details here at: http://www.mainehousing.org/PROGRAMSFirstHome.aspx?ProgramID=31

  Information provided by mainehousing.org