Maine Real Estate Info

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.

Okay, Let’s face it, when you have to register on a website just to see the Maine MLS properties for sale, you just as well back out and go to another web site without all those hassles, OR, you just fill in the blanks with false information to get to the results page. Now, thanks in part to MREIS (Maine Real Estate Information System), the Maine MLS search is even easier. No page registration required! This new user friendly feature is brought to you FREE on all of our websites at,

http://meservier.mreis.mlxchange.com/

http://www.meservier.com

http://mainerealestateexperts.com

http://www.MaineMLS.info

Along with this new feature, consumers can create a log-in, save their search and automatically be notified via email when something new comes on the market meeting their search criteria. And get this..you can then flag each individual property as Favorites, My Possibilities, Agent Recommendations, Rejects and Additional Properties. After the consumer has saved their search, they can log into their very own Private Client View website for easy search management. Try it out. For more information, contact our office at 207-784-2525 or email me at Mike@Meservier.com.

Oh, and one more thing…We even have all of the New Hampshire MLS search added into our search page for your convenience.  One more reason to use Meservier & Associates at Keller Williams Realty Mid Maine 34 Center Street Auburn, Maine 04210

In Maine, real estate licensees can hold 3 different types of licenses.  The entry level licensee will have a Sales Agent license which is temporary.  During this two year licensing period agents must practice full time and complete additional course requirements.  At the end of this two year temporary period Sales Agents must take and pass their Associate Broker license test.  An Associate Broker license is a 2 year renewable license.  Every Associate Broker in Maine must complete 21 hours of continuing education to be eligible to renew their license.  The third type of real estate is a Broker license.  Broker licensees are able to operate their own real estate company.  Many licensed Brokers aren’t company owners or operators but would be agents who have the highest level of real estate education available in Maine.

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.

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

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

Daily Real Estate News  |  December 5, 2007

Foreclosure Plan Will Be Greeted With Questions
Treasury Secretary Henry Paulson will unveil a plan on Thursday to forestall foreclosures and ease the housing recession.

The release of plan’s details will coincide with the release of data from the Mortgage Bankers Association that show that homes in foreclosure hit record levels in April through June, and that nearly 17 percent of subprime borrowers missed at least one payment in the first quarter of the year. An additional 2 million home owners will face their first interest-rate reset by the end of 2008.

“This is the most serious housing recession since the Great Depression,” says Mark Zandi, chief economist for Moody’s Economy.com. Zandi predicts that home prices, on average, will fall 7 percent more through next year.

Paulson says he wants state and local governments to be allowed to issue tax-exempt bonds to “temporarily” raise money to help some struggling subprime borrowers refinance.

Questions remain about how many investors, who bought bonds backed by these mortgages and are spread out around the globe, will agree to change the terms of the loans.

Source: USA Today, Noelle Knox (12/4/2007)

Daily Real Estate News  |  December 5, 2007

Bill Would Help Home Owners at Brink of Foreclosure
U.S. Sen. Dick Durbin (D-Ill.) is pushing for a bill that would allow bankruptcy judges to change the terms of a mortgage on the primary residence of owners at risk of foreclosure or bankruptcy.

Judges would be able to lower an adjustable interest rate to a lower, fixed rate. They already have the power to do this for car loans and a number of other debts.

Durbin says his bill could help an estimated 600,000 families at risk of losing their homes because of rising adjustable mortgage rates.

“A strategic change in the bankruptcy code will provide home owners facing foreclosure a degree of financial stability – even when the market cannot,” Durbin said.

Supporters of Durbin’s bill include senior citizens, bankruptcy attorneys, the AFL-CIO, and the NAACP. The American Bankers Association and home builders are among opponents.

Floyd Stoner, a leading lobbyist for bankers, says bankruptcy judges lack expertise to predetermine a loan’s size, value, and length.

Source: The Associated Press, Dennis Conrad (12/05/2007)

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.