Despite an overall average price drop of 3.9% for the state in November 2006 over 2005, the 4 counties above all saw price appreciation for the first time in multiple months with a combined 7% average increase and York topping out at 12%.  Taking into account that the volume of transactions dropped sharply, 19% on average with a staggering 32% drop in York.  Market depressions historically last on average 3-5 years and longer making this rise appear more likely to be an anomaly than a trend, but inventories continue to decrease and it is FACT that buying activity has markedly increased as of recent months.

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Yesterday the Department of Commerce released sales data showing a 3.4% increase in new home sales for November relative to October.  Not discounting the 15% decrease from a year prior it appears the one defininitive general conclusion is buyers are buying, perhaps at a slighty more voracious pace than 3 months ago.

Through my own observations, comments from local Maine agents and by simply reading the daily real estate headlines and articles from “national real estate guru fortune tellers” it is fact that buying activity has markedly picked up.  Will the markets stay healthy through 2007? I say  “Buy what you like, like what you Buy!”   

A couple articles from todays headlines:  2007 Real Estate Trends by John Maltz  and Peter Slatin On Commercial Real Esate 

For 2005, Maine had the undesirable status of being ranked #1 for the highest local/state tax per capita clocking in at 13% vs a national average of 10% and 2nd place runner up of New York at 12%. See full chart here. Source CNN Money

The recent appreciation of real estate values has greatly benefited local municipalites through large increases in revenue derived directly from higher property tax bills yet it is a wonder that budgets still fall way short of balancing?? One of Governor Baldacci’s continuing top priorities despite being shot down twice is a call for a constitutional amendment that would freeze property tax values for year round residents  Read more here 

With no foreseeable future solution and the potential for it to get worse before it gets better, residents of Maine do have the ability currently to apply for a homestead expemption that allows for 13,000 write off from a homes assessed value.  In addition a new program allowing for property tax and rent refunds for qualifying individuals went into effect this past August.  Find out more here

 Did you know??
One generally assumes they own their home as long as they pay their mortgage yet in reality the government continues to remain the largest landlord in America collect rents on all real estate through annual property tax bills.  FYI: Did you know failure to pay your property tax bill enables the local municipality to take a first lien on your home, superseeding any mortgages one may have on a home! 

 As our government continues to collect, spend and drive our country further into debt owing a home is one of the best ways to help reduce your tax liability and keep more for yourself. The President recently enacted the following legislature making mortgage insurance premiums tax deductible.

• Mortgage insurance premiums will be 100% deductible for households whose adjusted gross income is $100,000 or less.
• The law is effective for the 2007 tax year on purchase and refinance loans closed on or after Jan. 1, 2007.

THe Maine Association of Realtors recently released the below statistics:

How did Maine Home Buyers find a house in 2006:
28%  Real Estate Agent
35%  Internet
11%  Yard Sign
8%   Newspaper Ad
11%  Friend/Relative

Compared with 1997 national levels showoing 50% of homes were found by agents with a meager 2% coming from internet searches.  In 2003 the numbers were 41% agents vs 11% internet.  As the information age grows, new sites including www.zillow.com, www.trulia.com, www.craigslist.org will be unveiled. Try going to Google and typing in “real estate for sale” to see thier most recent foray into the market.

   Will these trends continue?  What will the real estate landscape look like 1 year from now, 5 years, 10 years? Will Realtors be out of jobs?  Who will profit, who will perish…

Where to begin, perhaps the mission of this site.

“To provide interesting and useful news, commentary and statistics on the Maine real estate market, drawing on infomation from local, regional and national sources”

Having the idea to create a common forum for discussion many moons ago it has taken me this long to finally get the project up and running.  What can you expect here?  At first during the ramp up, a lot of blank pages as I attempt to populate the various sections of the site.

About me highlights:

• Born in Chatham, NJ in 1979
• Spent all my summers on the coast of Maine in Phippsburg
• Moved to Maine permanently in 2002 residing in Portland on Congress street and later moving into my first home on Ocean Avenue
• Began my real estate career in affordable housing real estate development with Eagle Point Enterprises
• Been a residential and investment broker for the past 2 years full time
• Prior to real estate did web design, handyman business, hospitality industry and sailing instructor
• Some of my favorite hobbies include anything with the ocean, fixing up my homes, learning about new subjects, spending time with family and friends

Please provide comments on what you do and don’t like about the site, what you would like to see more of and how I can help you in real estate.

Thanks for visiting and check back often.