Maine Real Estate Information blog

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.

Watch this new video released by the Maine Association of Realtors for the “Your Piece Of Maine” social campaign. It will be aired on cable television channels as well as on YouTube and Facebook.
What do you think?

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 today’s buyer’s market it’s more important than ever that sellers stag their homes to sell.  With more and more properties going on the market for sale, buyers make decisions on which homes to view based on the overall condition and a marketable list price.  The market is what I like to call a pricing contest and a beauty pageant with the competitors being the homes on the market for sale.  Sometimes a professional stager can assist with paint colors and furniture placement.  Emphasis should be placed on the entrance to the property.  Most buyers spend a few minutes there looking at the details while the agent is obtaining the key.  A new door mat, flower pot and a fresh coat of paint at the entrance is a great place to start.  All personal property as much as possible should be stored away, the front of the refrigerator as much as it’s a great place to display family photos, children’s artwork and a magnet collection should be cleared off.  Baths should have an air freshner along with new towels and mats.  Keep all shades up allowing as much light into the home as possible.  Pet dishes, beds and toys should be removed as well, some buyers may not be pet lovers.  These few tips and helpful hints are a great place to start.  An experienced agent can also put their buyer’s eyes on and point out other staging suggestions that can be very helpful.

The upcoming spring real estate market in Maine will certainly bring great opportunities to Maine buyers.  Interest rates are expected to stay very competitive and the inventory and selection of properties available for prospective home buyers is at the best it’s been in several years.  When the national news media reports on the overall national market they refer to all market in the same category.  That would be similar to forecasting weather here in Maine in the same way meterologists forecast weather in Florida.  Markets are very local!  If you’re considering purchasing a home, now is certainly the time to consider your options.  The best place to start too is by contacting an very experienced local agent that understands their local market.  Long term investing, first time home buying and trading up your existing home are all purchase approaches that the current market provides an ideal climate for.  Buying choices that includes purchases for flipping, especially higher end homes and new construction built on speculation should be approached with a conservative eye.  Long market times can makes these types of purchases very costly to carry.

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.

The internet has changed how buyers and sellers find Maine homes for sale and Maine real estate agents.  With recent changes to the Maine MLS interface all agents now have the ability to offer buyers and sellers a pubic access point to all properties for sale in Maine.  Over 80 percent of today’s real estate buyers use the internet to start their search for a home.  What kind of information will today’s buyers and sellers be searching for next?  I feel, it will certainly be demand for a more sophisticated approach to understanding particular segments of the market.  The understanding that comes from how many homes are for sale in a certain communities, how many have sold in the last 6 months, for what percentage of the sale price did they sell, how long did each property take to sale is the next level of real estate information that today’s consumer is going to demand from the internet, their agent and the market.  It’s not longer just about access to the MLS and what’s for sale.  This type of information can vary greatly from area to area and in different price ranges.  A service providing this information is now available at www.mainemarketsnapshot.com  This service provides free reports to both buyers and sellers.  Subscribes can choose to receive the report via email either every month or every 2 weeks.  It also very important to be sure you have a high level agent to help you interpret the results of these snapshots.  There’s not substitute for the professional advice and counsel a skilled agent provides.

Maine’s per capita personal income increased 5.1% last year, to $33,722, according to prelimiary data released last week by the U.S. Bureau of Economic Analysis. Here’s a look at per capita personal income growth in the rest of New England, ranked by percent change.     2006 2007 Percent change Rank of percent change   Connecticut $50,762 $54,117 6.6% 4   Massachusetts $46,299 $49,082 6.0% 8   Rhode Island $37,523 $39,463 5.2% 23   Vermont $34,871 $36,670 5.2% 25   Maine $32,095 $33,722 5.1% 27   New Hampshire $39,753 $41,512 4.4% 39               New England $44,327 $46,948 5.9% 2 of 8 regions   United States $36,714 $38,611 5.2% N/A               Source: U.S. Bureau of Economic Analysis

Maine waterfront vacation rental available through this new website at http://mainewaterfrontrental.com/

Search the online calendar then call or email to reserve your time in the water. Hurry…now is the time to start planning for your lakefront cottage vacation rental.

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

Just listed this week is a 25 acre equestrian property named “Upper Pond Stables”, located at 147 Upper Pond Road Litchfield Maine. The asking price is $549,000.00 and a website for the offering is located at www.MaineHorseProperty.com. Please visit the website for the status of the listing. What a great time to BUY!

The stables has its own website which can be found at www.UpperPondStables.com. For all you horse lover’s out there, take the time to visit the website and, if interested in a personal viewing, give us a call at Meservier & Associates of Keller Williams Realty Mid Maine, at 207-784-2525, and we’ll arrange it for you.

Effective March 3, the Maine State Housing Authority is offering more mortgage options to homebuyers using their mortgage program. Options include a choice of 0 or 2 points, and a 30 or 40 year mortgage term.  These new options join other recent program changes that include expanding the program to veterans and active duty military (even if not first-time homebuyers), and Maine HOPE program that provides payment protection for program borrowers. For more info: http://www.mainehousing.org/NEWSPressReleases.aspx?PageCMD=newsDetail&NewsID=181

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%