Volume 1.7 - The Maine Newsletter - John Herrigel
Mission
“To Educate and Elaborate on this Great State”
Table of Contents
1. Housing Statistics
2. Commentary
3. Case Study: The Portland Single Family Market
4. “From Away”
5. Featured…..
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Housing Statistics:
Sold Properties by County (July):
# Sold Avg. Price Avg. DOM
Cumberland 321 317K 78
York 239 283K 95
Lincoln 43 274K 166
Sagadahoc 50 231K 90
Total Housing Inventories and Net Change by County:
8/25/06 7/17/06 Net Change
Cumberland: 3264 3201 64
York 3085 3043 42
Lincoln 781 752 29
Sagadahoc: 370 366 4
Commentary
The Psychosis of the Markets
This past month the Maine Association of Realtors released statistics showing a 16% drop in homes sold this July 2006 relative to July 2005. Taken from the New York Times “There seem to be three major paths that housing could follow over the next year: a soft landing, the start of a long slump, or a crash.” According to most the consensus seems to be a soft landing. Are real estate markets subject to the same psychological swings as financial markets? Yes. What will dictate the future of housing prices: the general public, media commentary, real estate agents, the buyers, the sellers, global forces? In Maine, this past months statistics may seem grim but I have faith in “Vacationland.” Perhaps bubbles will burst in greatly inflated markets and for the short run there has been and will be depreciation and flat lining but rates have retreated significantly as of late and look for Maine prices to hold strong as this state remains a great place to live in, work in, vacation in and retire in.
Case Study: Portland Single Family Markets
In 2000, 479 homes sold at an average sales price of 157K and stayed on the market for an average of 52 days (DOM). For the trailing 12 months through August 2006: 560 homes sold with an average sales price of 283K and an average DOM of 67. Currently there are 286 homes on the market with an average list price of 380K and a DOM of 92. Current asking prices are 34% higher than the trailing 12 months average sales price. From 2000 through present (6 year time frame) appreciation was approximately 80%. To expect buyers to pay the current average list price of 380K is to ask for a 34% premium in current market conditions where appreciation is at best minimal to realistically nothing. (Note: The current asking price may be skewed higher due to 9 properties currently listed over a million versus only 4 that sold in the trailing 12 months included in the data. Taking all 14 properties out of the mix brings the 34% down to 22% )
“From Away”
Maine Property Taxes
As real estate prices have risen, municipalities have revalued and the majority of property owners throughout the state have steadily seen their tax bills shoot skyward. A few articles to help educate and perhaps reduce ones current property tax burden:
-Homeowners Guide to Property Tax in Maine
-The Maine Homestead Exemption
-Property tax and rent refund program
-Tax Tools in Maine
Featured….
Quotable Quotes:
"Portland people are steadied by the vistas that play a large part in their lives -- vistas of sea and sky, of islands in the bay, of coves, of lighthouses outlined against craggy rocks."
-- An American Notebook
"Too many people miss the silver lining because they’re expecting gold." -- Maurice Setter
Maine Company: The Maine Island Trail Association
Founded in 1988, this non-profit organization has grown to encompass over 150 islands and mainland sites to create a 350-mile long waterway trail that extends from Kennebunk through Canada. A mixture of both public and private islands, the sites can be used for day trips as well as overnight camping voyages. If you are ready for an adventure or simply want to support this wonderful organization please visit www.mita.org
Site to Visit: www.Maine.info
From the website: “Maine.Info is an effort to call attention to organizations large and small in Maine. It is a human-edited compilation of resources for Maine travel and living. An excellent resource for upcoming events throughout the state.
Place to See: The Maine State Aquarium
Located in West Boothbay and built in 1995 to showcase the amazing marine life this state has to offer. The main gallery was constructed to resemble the rocky coast of Maine. Live fish exhibits are hidden within the granite-like cliffs. Interactive displays, touch tanks and a 23 pound lobster. Visit their website here
Restaurant: Mae’s Café
Mae’s Café is a distinctive restaurant and bakery housed in a turn of the century home in lovely, historic Bath. Serving Breakfast, Lunch, Dinner and Weekend Brunch as well as offering an amazing array of baked goods.
Visit: www.maescafeandbakery.com
All information contained herein is deemed accurate when facts are stated. All opinions are that of the author. We apologize for any inaccuracies, offenses or misrepresentations
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Thanks for reading.
Next Issue: Mid to Late September
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**All housing data has been derived from the Maine IDX MREIS System |