NOTABLE QUOTE: This last sentence in a Kennebec Journal editorial on 1/19/08 - “But if you’re selling one house in Maine and then buying another, the issue is a little less urgent for you. What you might lose on one end, you can make up on the other.” To read the entire editorial - http://kennebecjournal.mainetoday.com/view/columns/4671783.html
A great article came out in our local newspaper regarding the housing market in Maine. Here things are a little bit different. Home prices in Maine have actually risen. The article talks about a trend tahat highlights a disconnect in Maine: Over the past year, the number of homes sold has declined by double digits nearly every month. Despite that, median prices continued to edge up, or remain flat.
In November, home sales statewide were off more than 10 percent compared with a year earlier, but the median price – the point at which half the homes sold for more and half for less – rose more than 1 percent, to $188,000.
You can read the whole story here at The Maine Today site: http://pressherald.mainetoday.com/story.php?id=163046&ac=PHnws&pg=1
MREIS PRESS RELEASE: In a press release to the media today, MREIS reports that the number of homes sales in Maine in November dropped 10.63% comparing November 2007 to November 2006; and the median sales price increased 1.62%. NAR reports nationwide single-family home sales decreased 19.9%; and national median existing sales price dipped 3.7% to $208,700. Home sales in the Northeastern U.S. mirrored national statistics with a 19.4% drop in sales, with median sales decreasing 3.2% to $258,300. The complete press release is posted at http://www.mainerealtors.com/MaineHousingReport-November2007.pdf
For buyers and sellers alike! This request form sents information to your email within 30 minutes and is customized to the criteria you select. You’ll continue to recieve these in roughly 30 day intervals and watch how the market conditions change. Feel free to call with any questions you may have with the market snapshot or if you’re looking for a more in depth interpretation of your results.
In a press release to the media today, MREIS reports a 1.95% decrease in median sales prices and 12.23% decrease in unit sales for homes statewide in Maine comparing October 2007 to October 2006. The median sales price was $188,500 in October, down from $192,250 one year ago. Median sales price indicates half of the homes were sold for more and half sold for less. NAR reports national sales of single-family existing homes dropped 20.8% in October. The national median existing single-family home price decreased 6.3% in one year to $205,700. In the regional Northeast, sales were down 12.6 percent; and the regional median sales price rose 1.3% in October to $258,700.
In Androscoggin County where unit sales are down 22.56% in 2007 verses same time period in 2006, however, the median sales price is up 1.66% during the same time frame.
Price Analysis for the Portland, Maine Metro Region
October 2007
Home prices in the Greater Portland Metro Region encountered a boom in 2002 to early 2005, but prices have been falling in recent quarters. Homes do not appear to be overpriced. With job gains continuing at a solid pace, home price increases will likely continue, though not at a frenzied pace. A sharp reduction in new-home construction will help control the overall inventory situation. Resetting loans and the rising number offoreclosures related to the subprime fallout are clearly negative factors, but the impact will be offset by the fundamentals of the healthy local economy.
Summary
With job additions continuing (possibly at a faster clip going forward) and mortgages rates hovering at about 6.4% as of early October 2007, the housing market is poised to climb back. With home prices so affordable it is possible to get a spurt. If, however, mortgage rates were to rise to 7.5% or higher, then the housing market would continue to limp along with the possibility that home prices and overall housing wealth could fall. If rates were to move lower, then the market will recover at an even quicker pace. Sales activity has come down and home prices have also been falling in the Portland area. However, the local economy is generating jobs at a healthier pace. The Boston region has picked up strongly, which usually implies that Portland will not be too far behind. The national economy is also fundamentally sound due to rising exports and business spending. Consumer spending will be a bit weaker because of stagnant home price and its accompanying wealth impact. One interesting observation is that the continuing low mortgage rates have not led to more buyers - implying that there is an issue of confidence, or lack thereof - in the homebuying decision. Also, the recent subprime fallout is a concern, though the shakeout will be good for the housing market over the long-run as the market eliminates bad mortgage lenders. Inflation appears to be contained. Both the headline and the core consumer price index decelerated to 2.8% and 2.1%, respectively, over the past 12 months to September. Better yet, most economists anticipate a further deceleration of inflation in 2007. Such an outcome could well lead the Federal Reserve to cut the federal funds and prime rates down the road. A fed funds rate cut is no guarantee of a fall in mortgage rates, but the signal that inflation is contained will force bond buyers to demand lower inflation premium, and hence, lead to lower ortgage rates as well.
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
FOR IMMEDIATE RELEASE
SALES AND MEDIAN PRICES OF MAINE REAL ESTATE BOTH UP OVER FOUR PERCENT IN JULY
SOUTH PORTLAND (August 28, 2007) - Unit sales and median sales prices of Maine’s single-family homes rose over four percent in July. According to the Maine Real Estate Information System, Inc., Realtors reported selling 4.26 percent more homes this July when compared to July 2006. Not only did sales increase: the median sales prices for the homes sold increased 4.74 percent.
A total of 1,247 homes changed hands during July 2007, up from last July’s sales of 1,196 homes. The median sales price reached $199,000 — a 4.74 percent increase from July 2006’s price of $190,000. The median sales price indicates that half of the homes were sold for more and half sold for less.
Nationally, sales of existing, single-family homes dropped 9.3 percent from July 2006. According to the National Association of Realtors, the median sales price dipped a slight 1 percent during the 12- month period.
The Northeastern United States witnessed 2.9 percent fewer sales this July. However, the regional median existing sales price jumped 5.9 percent to $290,900.
Buyers are beginning to perceive the value in available listings, according to Kevin Robert of Coldwell Banker Residential Brokerage in Saco. “Some buyers have lost out on properties because they waited too long, in anticipation of a lower price, before making an offer to the seller,” he said. “Buyers are realizing that they must pay more so as not to lose out on an available offering.”
John Bragg, co-owner of deRochemont Realtors, LLC in Rockland, addressed the current mortgage market. “While the national headlines carry stories about sub-prime lending and large mortgage companies, mortgage rates and availability of mortgages remains good, particularly with local banks.”
How will Maine real estate fare during the next 12 months? Sheryl Gregory, Broker of Homestead Realty in Winthrop said, “This is the correction period and I expect the fears will subside and we will return to business as usual.”
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.
These stats came in today’s email by the Maine Association of Realtors. MREIS is “Mine Real Estate Information Services”
NOTABLE STATISTICS: Recently MREIS looked at the data for the first 685 sales reported with the new data field - Buyers Previous Zip Code. Statistics show that of those, 75% of all properties were purchased by those in Maine, with 25% from out-of-state. While single-family residential and condo property types each had 75% of purchasers from Maine, multi-family had over 90% and mobile home had 86% of purchasers from Maine. However, nearly 40% of land purchasers were from out-of-state. Nearly 49% of all out-of-state purchasers were from two states - MA (32.6%) and NH (16.3%). REMINDER - that data field is a mandatory field in MREIS. You cannot use 00000. For Canadian or International purchasers use INTL in that alpha-numeric field.
If you think about, this is a great tool for your marketing campaign. Where you advertise may directly affect how long your listings are on the market, and therefore putting more money back in your pocket.
If your thinking of selling your Maine Real Estate, why not give Meservier & Associates a call. They know Maine, real estate technology, and what it takes to market and sell your home. The are Today’s Real Estate Professionals!
This just In… the Maine State Housing Authority indicates, “A federal law was passed which enables housing finance agencies to waive the first-time homebuyer requirement for veterans who: a) served in active military, naval or air service; and b) have been honorably discharged, and c) have never received a mortgage financed in any state with Mortgage Revenue Bonds (which MSHA uses to finance loans).” MSHA has announced their expansion of the exception to include active duty military personnel who have owned a home within the last three years. Effective immediately, veterans and active duty military (including their spouses) who are non-first time homebuyers, but meet the above requirements and all other MSHA eligibility requirements will qualify for MSHA financing. The waiver applies to all MSHA programs. MSHA is unable to determine the number of bonds that will be issued in 2007 or how long eligible funds will be available. Therefore, the funds for eligible veterans/active duty military are on a first-come, first-serve basis.
We all owe a debt of gratitude to our Vets. I wish our government would do more to help improve those programs already in place, mainly, health care.
Bravo!
More interesting news…Maine is one of the region’s least expensive states in which to close a mortgage transaction, according to an annual closing cost survey by Bankrate.com. Here’s a list of the average cost of closing a mortgage transaction in New England’s six states, as well as their national ranking. New York is the most expensive state in which to close a mortgage transaction, with an average closing cost of $3,830.
| Closing costs | National rank | |
| Connecticut | $2,858 | 11 |
| Massachusetts | $2,849 | 12 |
| Rhode Island | $2,768 | 18 |
| New Hampshire | $2,724 | 21 |
| Maine | $2,671 | 29 |
| Vermont | $2,666 | 30 |
Source: Bankrate Inc.
Study: Housing costs too high
A Harvard University housing study recently reported that, for many Americans, housing costs are eating up too much of their annual income.
The university’s Joint Center for Housing Studies said in its 2007 State of the Nation’s Housing report that housing affordability “remains a pervasive problem,” and that more than 30 million Americans spend 30% or more of their annual income on rent or mortgage payments.
The report noted that southern Maine was the state’s most difficult housing market, and that the hourly wage required to afford a modest two-bedroom apartment was between $14.50 and $21.74. For the rest of the state, a renter would have to earn between $7.25 and $14.49 an hour to afford the same apartment. That compares to the state’s current minimum wage of $6.75 an hour.
A new Harvard University study says high housing prices are eating up too much of homeowners’ salaries. Here’s a list of the highest median sales prices (MSP) of single-family homes sold in Maine counties during February and April of this year, as well the change from the MSP during the same period in 2006.
| County | MSP 2006 | MSP 2007 | % Change |
| Cumberland | $240,000 | $244,250 | 1.77% |
| Knox | $236,000 | $226,250 | -4.13% |
| York | $230,000 | $223,750 | -2.72% |
| Lincoln | $206,000 | $220,000 | 6.8% |
| Sagadahoc | $194,000 | $213,750 | 10.18% |
Source: Maine Association of Realtors and Mainebiz.biz