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. 

Read the entire Maine Newsletter here.

Maine real estate sale were down 12.2%  in April from a year ago according to the Maine Associatation f Realtors.   Median sales prices increased by 5.9% to $201,00 from $190,000.   For the nation as a whole according to the National Association or Realtors, the median existing single-family home price dipped 0.9% to $220,500 in April. For the Northeast region, sales were down 8.8% on average and the median existing single-family home price was $283,600, down 0.6%.  See the complete press release here. 

Trying to think what interests people and having just done a bike tour searching out multi units in and around the East End of Portland, the love of food coupled with the desire for lucrative investments in Maine real estate  I thought perhaps a brief commentary on how I feel the local region surround the behemouth will fare over the coming years was a good subject for conversation. Driving down 295 one can’t help but notice the beacon of development Whole Foods represents.  Coupled with the newer Planet fitness next door, the Back Cove a stones throw away and the push of the city to redevelop the bayside area, the real estate, although a little rough around the edges has great potential I believe.   The brick warehouses on Kennebec streed I envision as loft condos, the single family and duplexes on streets such as Alder, Oxford, Chestnut, Hanover and Elm to name a few, shall be bought, renovated and brought back to their original splendor and  the removal and infill of the local junk yards and city of Portland public works buildings will bring larger mixed used retail, commercial and residential proprety. The area is ripe for improvement,  keep an eye on it. 

As the residential real estate markets continue to undergo tumultous times, what has been happening in investment properties in Maine. In Portland the current inventory of multi units has grown to around 90-95 properties after hovering around 80 to 85 for the past many months.    Here are some recent statistics on the current inventory levels and pricing of smaller mulit unit properties on the  East and West end.

Current Inventory levels as of 5/15/07

                                           East End  
               Total    Avg List Price      Per/Unit       DOM
 2 Unit        4            276                 138               110
 3 Unit        7            397                 132                38
 4 Unit        4            421                 105                41
 5 Plus        3                                  100 
     
                                             West End  
            Total       Avg List Price       Per/Unit          DOM
 2 Unit      8             349                    175                 110
 3 Unit      5             334                    111                  38
 4 Unit      4             414                    104                   41
 5 Plus      7                                        83 

It seems the State Taxation Committee has not gotten the message that an exorbitant increase of as much as 300-450% of the Maine real estate transfer tax from the current rate of $4.40 per $1000 of sales price is a bad idea.  Yes it may bring as much as 55 million more in revenue to the state but at what cost?  Perhaps a small rise is necessary but to go from 4.40 to 12.50 and have an even larger price increase to $20/$1000 for homes over $500,000.  If you are thinking of buying property in Maine, here is a link to all the various legislators to write and urge them not to support the measure. http://janus.state.me.us/house/townlist.htm

 Taking all Single Family homes sold in York and Cumberland County Maine, here is a breakdown of the number of homes sold and the percentage of the total for the 3 months ending March 31^st 2007.

I had written in a previous posting about shoreland zoning changes and the public outcry against them.  From the Maine Association of Realtors here is an update.

   
  LD 1477 is the Department’s bill and is sponsored by Rep Koffman, chair of Natural Resources Committee.  LD 1014 is Senator Kevin Raye’s bill.  Hearings on both bills ave been held and were very well attended by  members of MAR and members of the property rights group known as PRAM.  The legislators were very attentive to all the concerns expressed.  A compromise appears to be in the works which would reduce the feeding, staging and roosting areas currently shown as green areas on the maps to just roosting areas.  The old feeding and staging areas would appear as purple on new maps.  The roosting areas (new green) would stay at the 250 foot setback rule, with cutting restrictions (Impacting view—which we oppose).  The new purple feeding and staging areas would go from current 250 to 75 with view cutting restrictions  or 100 feet with no cutting restrictions beyond current timber cutting in a shoreland area restrictions.

 The DEP offered (not in the current bill) to change the inland wading bird restrictions to match current law of 250 setbacks from wetlands, and 100 feet from shores of lakes and ponds (also current law).  The DEP bill makes the new provisions retroactive to June 8, 2006 to protect transactions which occurred last summer.  LD 1014 is not retroactive, but Senator Raye agrees with that change.  Senator Raye’s bill also grandfathers lots existing of record on September 8, 2006.  That provision is likely not to pass.  He also seeks setbacks of 150 feet rather than 250 feet which we would support but does not seem to have the  support of the committee.

Looking for a remote getaway in Maine.  A state with the largest contiguous undeveloped land mass in the Northeast, the Maine Land Use Regulation Commission(LURC) has jurisdiction over approximately 10.4 million acres of land in the state (approximately 50% of all land in Maine.) Created in 1971 as a response to the boom in recreational real estate development of the 60’s LURC is the largest planning and zoning authority around wielding enormous power and shaping public policy. When buying property in the less populous regions of the state be sure to run your grandiose plans for development by LURC so as not be stymied.  Recent headline stories with LURC jurisdiction include the Moosehead Lake and Saddleback Ski Resort redevelopments.  Read their land use plan here