The Maine Newsletter – Volume 2.4 - John Herrigel
Mission
“To Educate and Elaborate on this Great State”
Table of Contents
1. Housing Statistics
2. Commentary: Inventories, Pricing, Demand?
3. Case Study: Market Comparison 2004 vs. 2007
4. “From Away”: 300% Transfer Tax Increase
5. Featured…..
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Housing Statistics:
Sold Properties by County – April 2007 (April 2006):
# Sold Avg. Price Avg. Days on Market
York 253 (246) 277K (278K) 116(109)
Cumberland 303 (373) 305K (286K) 90 (92)
Sagadahoc 34 (35) 222K (210K) 92 (110)
Lincoln 29 (20) 230K (205K) 172(199)
Total Housing Inventories and Net Change by County:
5/24/07 4/28/07 Net Change
York 3023 2831 192
Cumberland 2861 2629 232
Sagadahoc 388 348 40
Lincoln 731 656 75
Commentary: Inventory, Pricing, Demand
Statistics for April show the continued trends of rising inventories yet increasing prices, a quandary for traditional Supply/Demand economics. Prices were up in 3 out of the 4 counties followed with a 6.7% increase in Cumberland. The number of properties sold increased in Lincoln and York, remained flat in Sagadahoc but saw a strong decline in Cumberland partially attributed to the Portland younger buyer’s inability to secure loans due to increasingly stringent lending practices for higher risk financing. A general sense of “blah” seems to have clouded the markets in April, yet investor and consumer sentiment seem to point toward improving market conditions for late spring.
Case Study: Market Comparison 2004 vs. 2007
% change's from April 2004 to 2007 |
|
# Sold |
Avg. Price |
York |
-10% |
7% |
Cum |
-22% |
15% |
Sag |
-34% |
27% |
Lin |
-24% |
2% |
This statistic compares the number sold in the month of April 2004 versus recent April statistics. Transaction levels are down in all 4 counties with the mid coast region being hit the hardest and York county weathering the downturn the best yet seeing the smallest price appreciation for the 3 year time period.
“From Away” - 300% Maine Transfer Tax Increase
Maine has enjoyed a very low transfer tax rate for many years. Recent legislation from the Maine legislative Taxation Committee is considering an increase in the real estate transfer tax (a tax paid at the time a property sells) from $4.40 per $1,000 of sales price to $12.50 per $1,000 (for properties under $500,000) and $20 per $1,000 (for properties $500,000 or higher). Thus the tax on a $250,000 home that used to be $1,100 would be $3,100 and for a 500K home the tax would increase from $2,200 to $10,000. For more information visit www.MaineShakedown.com
Featured…
Maine Company: Frontier Energy
Frontier energy is the first Maine company to offer bio-fuel. Its mission is “to increase the health of our environment and provide a stable, reliable alternative to current energy sources.” Current customers include LL Bean, Colby College and the City of Falmouth. Visit them online at www.frontierenergy.org
Site to Visit: http://www.mainegasprices.com/
Find out where across the state to get the best price at the pump.
Restaurant: The Cape Arundel Inn, Kennebunkport
If you’re looking for the best dining in Southern Maine Jack, the proprietor, and Richie, the chef, will wow you with the views, foods and ambiance. Overlooking Walkers Point, watch the surf crash as you enjoy a gourmet selection of food. Be sure to make reservations. Phone: 967-2125 www.capearundelinn.com
Quotable Quotes: “Talent is cheaper than table salt. What separates the talented individual from the successful one is a lot of hard work.”
Stephen King, Author and Maine resident
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-Late June
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**All housing data has been derived from the Maine IDX MREIS System
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