Maine Real Estate Info

Foreclosure filings in June were up 61% over the same month last year, according to a firm that tracks foreclosures.

Maine had 276 homes, or one in every 2,504, receive a foreclosure filing in June, according to California-based RealtyTrac’s most recent U.S. Foreclosure Market Report. The June numbers were a 14% increase from May 2008.

Nationally, 252,363 U.S. properties, or one in every 501 households, received a foreclosure filing during June, a 3% decrease from the previous month but a 53% increase from June 2007, according to the report.

More home buyers have a better chance now than at any other time in nearly a half decade to negotiate a home-buying deal that costs less and comes with some concessions thrown in.

In many locations, buyers will find a glut of new homes, more motivated sellers, foreclosures, auctions, short sales and other market conditions that can make it a really good time to buy.
     
That doesn’t mean throw caution to the wind. Here’s how to begin to navigate today’s housing market, step-by-step, and make a good deal without getting taken.

 Begin with making a personal “right-time-to-buy” decision. If you stretch financially beyond your means to go after lower-priced homes, foreclosures or short sales, you could be setting yourself up for failure. Today’s housing market is littered with home owners who borrowed more than they could afford.
     
On the other hand, if you wait for…CONTINUED >>>

Sales of single-family homes in Maine were down 12.39% comparing May 2008 to May 2007, according to a press release from the Maine Association of Realtors.

The decrease from May 2007’s sales was slightly less than the national slump of 14.5%. Regionally, home sales in the Northeast were down 15% in May.

Androscoggin County was down 27.59% in unit sales (an improvement over the 40% down range we’ve been experiencing) and sale prices were off 7.42% over the same period last year.

Median sales prices also declined across the board during the same period — by 5.7% to $182,000 in Maine, by 2.4% to $278,000 in the Northeast, and by 6.8% to $206,700 nationally. The median sales price indicates that half the homes were sold for more and half sold for less. However, during the rolling quarter sales period, which includes the months of March, April and May combined, 5 of Maine’s 16 counties experienced an increase in the median sales price.

The complete press release is posted at http://www.mainerealtors.com

In an article by MaineBiz.biz, Foreclosure filings in Maine increased 178% in April over the same month last year, according to data released today by RealtyTrac, a California-based firm that tracks the U.S. foreclosure market.

In April, there were 314 foreclosure filings in Maine, up 60% from March and 178% from April 2007, according to the press release.

Nationally, April saw a 4% increase from the previous month and a nearly 65% increase from April 2007. One in every 519 U.S. households received a foreclosure filing during the month.

Now is the time to buy!

According to an April 14 article on Realtytimes.com, “The first quarter of 2008 makes the 24th consecutive quarter that rental prices have escalated nationwide.” Click here to read the rest of the article, “Realty Viewpoint: If You Think You’re Saving Money Renting…Think Again.”

While Your First Home, the first book in the Keller Williams Realty Guide Series, emphasized that, “If you can afford to rent, you can afford to buy,” holds true. This point appears truer now than ever before.

Right now is the best time for new buyers to get out of rental properties and enter the housing market. Interest rates over the last 15 months have gone from 6.2% in January 2007 to 6.7% in July 2007, then down to 5.75 in January 2008. In recent weeks it has gone to about 5.95%. Are Renters taking advantage of our current market conditions and converting to Home Owners? We’ll certainly find out.

This Maine Real Estate Spring market is already showing signs of an up-swing. Massachusetts is already experiencing this as well as other New England States. Keep your eye on our Spring real estate market.

To search for Maine Real Estate, over 25,000 properties, visit one of our Maine MLS sites at:

Meservier.com

MaineRealEstateExperts.com 

MaineMLS.info 

This just in from the Maine Association of REALTORS:

National Association of REALTORS reports House and Senate lawmakers are moving quickly on a tax incentive to help stimulate housing markets. In the Senate, legislation would create a $7,000 tax credit, taken over two years, for individuals who purchase a foreclosed property as a principal residence between April 1, 2008, and April 1, 2009. A House measure would provide a $7,500 credit to first-time buyers for the purchase of any house as a principal residence between April 8, 2008, and April 1, 2009. The Senate bill is pending on the floor; the House bill is in the Ways & Means Committee. The Bush administration has voiced concerns about distorting markets and pricing.

The Maine Association of Realtors has prepared a “4 Facts about Maine Real Estate” to respond to common consumer questions or concerns about buying real estate.

1. All Markets are local

2. Another word for real estate is home

3. There is available mortgage money

4. It’s still the greatest source of wealth-building

1. All Markets are local. Yes, there is national, regional, state and county statistical data, but each will not clearly or fully explain market conditions in a town or neighborhood. Market conditions can also vary based on types of property or whether waterfront or not, for example. What happens with California or

Las Vegas real estate sales is not going to mirror real estate sales conditions in your area of interest. Please get local market information from a local REALTOR®.

As general information, the chart below shows what has happened with median real estate home sales prices statewide in Maine over the past nine years.

2. Another word for real estate is home. Don’t forget the real estate you buy may be where you live or where you vacation. Many buyers are finding properties in Maine that are larger or more affordable than the last time they checked. Don’t miss the opportunity to move into your dream house while there are so many affordable and desirable options.

3. There is available mortgage money. There’s so much press about predatory lending that the story there is money to lend by local and reputable lenders can get lost. Don’t be discouraged by negative press – instead check with a local reputable lender to get the real facts on what you may be able to afford and what your monthly payments may be. Find out if you can pay less monthly by owning than renting.

The fact that predatory lending practices have been halted is great for consumers, not bad.

4. It’s still the greatest source of wealth-building. Real estate like everything else may fluctuate with economic cycles, but over the long term is consistently the asset that provides the greatest wealth to Americans. If you’re renting, check to see what tax opportunities or long-term wealth may be created if you invest in real estate now. If you’ve always wanted to trade up, any loss you may take on a first home may be more than made up by the value added in the second home. Do the math.

Unfortunately for sellers, the news isn’t great, and the numbers don’t lie. The good news is that the market is great for buyers! While inventory levels are very high, and interest rates remain low, with home prices having dipped slightly, more sellers are willing to make some concessions which make this the ideal time for buyers. It’s always a great market, it’s just a matter of who is benefiting the most, and today’s market is more beneficial to buyers than sellers typically. Read on…
Maine home sales fell 20% from February 2007 to February 2008, the Maine Association of Realtors said yesterday.

Realtors sold 555 existing, single-family homes last month, compared to 698 homes last February, according to a press release. The median sales price of Maine homes fell 2% during the same period, to $190,000.

Nationally, home sales fell 22.9% from February 2007 to February 2008, and the median sales price fell 8.7%, according to the trade group.

While the average median sales price (MSP) of a home in Maine has dipped only 2% since last year, residents of certain counties are experiencing much larger fluctuations in the value of their homes. Here’s a list of the three counties that have seen the greatest increase in home values and the three counties that have seen the greatest decrease in home values. All the data is available here.

County _MSP 06-07__ MSP 07-08_ % Change

Statewide $192,000 $188,000 -2.08%

Somerset $78,750 $96,500 22.54%

Oxford $146,000 $165,000 13.01%

Lincoln $212,625 $239,000 12.40%

Washington $120,000 $69,900 -41.75%

Sagadahoc $199,950 $167,500 -16.23%

Androscoggin $163,300 $155,000 -5.08%

Source: Maine Association of Realtors

To Search more than 24,000 Maine properties for sale, go to: Maine Real Estate Experts .com , Maine MLS .info or Meservier.com

Also…If you want to know what the real estate market is doing in your Maine neighborhood, visit: Maine Market Snapshot .com

Maine real estate Buyers and Investors….Today’s market plays to your advantage, you should be swooping in to make the most of reduced housing costs and favorable interest rates, instead of waiting. When the market turns, today’s bargains will be yesterday’s missed opportunities. 

While it is conceivable that home prices may drop further, it is likely that these decreased prices will be accompanied by increased financing costs due to rate cuts by the Fed. This means that any money saved on paying less for a house in a few months time will be offset by you having to pay off your mortgage at a higher interest rate making “playing the waiting game” a waste of time (and very little fun). This rate increase isn’t just speculation. Just a couple of weeks ago, in early February, the fixed mortgage rate jumped a full half-percent, making it the fastest rate increase in 20 years. 

The table below demonstrates how even as home prices may drop, monthly mortgage payments basically stay the same; due to increased interest rates:   Scenario 1:
Prices decrease by 5% and interest rates increase by 0.5%
Scenario 2:
Prices decrease by 10% and interest rates increase by 1.0%

Today	Scenario 1	Scenario 2
Home Price $218, 900	Home Price: -5% $207,955	Home Price: -10% $197,010
Interest Rates 6.04%	Interest Rates: +0.5% 6.54%	Interest Rates: +1.0% 7.04%
Monthly Payment $1,054	Monthly Payment $1,056	Monthly Payment $1,053

Table: Kadlec, Dan. “Ignore the Headlines!”  Time 25 February 2008  

I have to ask myself…Why would my clients spend months in a situation that they want out of when they can begin their new lives in their new home today, with less interest? 

It’s NOT too late…Call me or email TODAY!…or…Fill out my Dream Home Finder yourself at: meservier.com - Dream Home Finder 

Michael Meservier
Meservier & Associates
Keller Williams Realty Mid Maine
34Center Street Auburn, ME

04210

office: 207-784-2525
email: REALTOR@mainerealestateexperts.com

Keller Williams Realty Mid Maine - 34 Center Street Auburn, Maine 04210. 

Sales of single-family homes fell 28% last month compared to January 2007, according to the Maine Association of Realtors. In January 2007, 688 homes were sold in Maine compared to just 495 last month. The median sales price for homes sold in January also dipped just over 2%, from $189,200 in January 2007 to $185,000 last month. The Maine Association of Realtors said in a press release that record snow fall could impact home sales.

Meanwhile, national home sales were down 22.4% from January 2007, and the median sales price for an existing single-family home dipped 5.1% to $198,700, according to the National Association of Realtors.

County Units sold
2006-07 Units sold
2007-08 % Change Statewide 2,656 2,131 -19.77% Piscataquis 71 31 -56.34% Franklin 83 46 -44.58% Washington 17 10 -41.18% Kennebec 272 186 -31.62% Cumberland 640 476 -25.63% Knox 92 70 -23.91% Lincoln 78 60 -23.08% Somerset 80 65 -18.75% Sagadahoc 66 54 -18.18% York 406 333 -17.98% Androscoggin 179 149 -16.76% Hancock 123 105 -14.63% Penobscot 290 269 -7.24% Oxford 108 108 0.00% Waldo 73 81 10.96% Aroostook 78 88 12.82%

PRESS RELEASE:  In a press release to the Maine media today, MREIS reports single-family real estate sales decreased over 28% during January 2008, compared with January 2007, with a total of 495 homes being sold. Statewide median sales prices for those homes dipped just over 2% to a median sales price of $185,000. The median sales price indicates that half of the homes were sold for more and half sold for less.  While prices decreased overall, several Maine Counties experienced double-digit price gains during the month of January. Nationwide, real estate sales were down 22.4% from January 2007.  According to NAR, the median existing single-family home price dipped 5.1% to $198,700. The Northeastern United States experienced a 25.7% regional decrease in sales.  However, NAR reported that prices rose 3.1% to $270,800 in the past year.

Real Estate at the Crossroads: Choosing to Thrive

Recapping the shift in the real estate market at Family Reunion, Gary Keller urged attendees to seize the current market to their advantage.  Keller explained that the 10-year run-up in real estate that began in the early 1990s, led to an environment in which homes were no longer affordable, lenders were willing to take unreasonable risks and inventory rose to record levels.

This chain of events led to mortgage lenders pulling back, followed by a credit squeeze, increased inventory, dropping prices, rising defaults, slipping consumer confidence and reluctant buyers.

 

MSHA NEWS:  The Maine State Housing Authority (MSHA) provides these notable updates - a) for the month of February 2008 their First Home Rate remains 4.95% and Maine Assist at 5.25%; b) beginning March 3, MSHA will offer 0 point, 2 point and 40-year term options.  The current 3 seller point requirement will be discontinued.  Program guidelines, webinar training dates and marketing initiatives will be announced during February.  Will apply to first-time homebuyers, veterans and active duty military; c) MSHA borrowers who lose their jobs now have Maine HOPE (Home Ownership Protection for umEmployment).  Maine HOPE may be available to assist borrowers who become unemployed by making 4 of their MSHA mortgage payments, including taxes and homeownership insurance.  The Maine HOPE loan is interest free and repaid when the borrower pays off their MSHA mortgage or stops using the home as their primary residence.  For more info - (800) 452-4668 or http://www.mainehousing.org/HomeLoan/

New home construction in Maine will bottom out in 2008 and industrial lease rates will stabilize due to low demand, experts said yesterday at the Maine Real Estate & Development Association’s annual conference.Presenter Charles Colgan, a former state economist and professor at the University of Southern Maine’s Muskie School of Public Service, said new home construction in Maine will continue to fall in 2008, but not nearly as low as in other parts of the country. Meanwhile, lease rates for industrial sites in southern Maine will stay mostly the same, so landlords should try to keep existing tenants if possible, even if that means lowering rent, said Michael Miller of NAI The Dunham Group.

The MEREDA conference, held at Portland’s Holiday Inn by the Bay, included forecasts for the commercial and residential real estate markets in Portland, Lewiston-Auburn and Bangor.

This is the type of information we need to know and be able to communicate with our buyers and sellers, says Paul McKee, Team Leader of Keller Williams Realty Mid Maine. The Maine real estate market is holding steady regarding prices, slightly up in 07, but the number of transactions have decreased from the previous year.  Over all, Maine is fairing much better than what you here Nationally and that message needs to made clear to our clients.  Buyers need to know that prices are actually slightly higher, so “give aways” are not happening like they think, and sellers need to know that there are far less people out there making purchases and more properties for those fewer buyers to look at, so their price and the condition of the home needs to be “in the market” to even have a chance of selling now. Keller Williams Realty Mid Maine is located at 34 Center Street in Auburn Maine and they can be reached at 207-784-2525

Read the full press release here:

MEDIA REPORT:  In a press release to the media today, MREIS reports a 10.07% decrease in home sales comparing 2007 to 2006. Maine’s median sales price reached $194,000 in 2007, up 0.77% from 2006.  Median sales price indicates half of the homes were sold for more and half sold for less. During the month of December only, the statewide median sales price decreased 4.62% and sales were down 23.27 percent. Nationally, single-family home sales declined 21.6% and sales prices dipped 6.5% in the month of December.  NAR reported for all of 2007, home sales fell 13% and median sales price decreased 1.8% to $217,800. In the Northeastern United States, sales were 22.4% lower than last December.  The regional median sales price decreased 8.9% to $258,600.  Go to:  http://www.mainerealtors.com/MaineHousingReport-December2007.pdf