Maine Housing Report 2009

Maine
In 2009, the Pine Tree state showed the second highest increase in single family home transac-tions in New England, posting a 7.9% increase for the year.
According to sales figures published by the Maine Association of REALTORS®, single-family home sales increased 48.6% in November 2009, compared to November 2008, showing the significant effect of the first time homebuyer credit.
Conversely, out of all the New England states, condominium sales were hardest hit in Maine. The state showed a sales decrease of -19%. Across the border, New Hampshire faired much better posting an increase of 8.5%.
This might be due in part to the lower median price of a single family home last year, $153,000, compared to the median price of a condominium at $170,000. Consumer preference tends to run toward single-family homes if com-parable to a condominium and in the same price range.
Multi-family homes faired much better, with a 19.01% increase over 2008, most likely due to a 20% decrease in home values, making it the most affordable option in the State for many first time buyers.
Mike LePage, Broker/Owner of RE/MAX Herit-age in Yarmouth and President Elect of the Maine Association of REALTORS®, saw fairly flat sales in 2009, along his coastal territories.
“We‟re slightly up over 2008, and that‟s really because the market priced itself correctly and government incentive programs had a big impact on first time buyers here.”
LePage, who services Maine‟s coast from Brunswick, through Portland, to Cape Elizabeth, services a wide array of clients from first time buyers through million-dollar home consumers. One issue common to every consumer is the dif-ficulty in getting an accurate appraisal of a home.
“Our offices work with a wide array of proper-ties at different price points. A huge problem in 2009 was trying to get an accurate appraisal. It definitely slowed the process down, ended some transactions, and is an issue we need to address moving into 2010.”
A bright spot in the State‟s market, according to LePage, is that unlike other New England states, he hasn‟t seen a real difficulty in homeowners obtaining loans. That, coupled with low interest rates and the tax credit fueled the last quarter of 2009.
Maine was largely untouched by the foreclosure crisis affecting other states in 2008, most notably Rhode Island. However, that could change in 2010 according to LePage. “We were fortunate here and didn‟t see a lot of foreclosures. Howev-er, I believe that‟s about to change, and we‟re going to see a surplus of properties in this area. In addition, because the tax incentives end at the end of April – we‟re going to see seller‟s aggres-sively put their homes on the market in the first quarter of the year, adding to our existing inven-tory.”
Maine‟s real estate market in 2010 will ultimate-ly come down to jobs. While Maine‟s unem-ployment rate hovers around 8%, higher than neighboring Vermont and New Hampshire, there will be caution in the real estate market. “The number one thing we need to look at in 2010 is unemployment. If we can hold our number, we‟ll be okay. If we start to see growth, it will trickle down into all other areas of our local economy,” said LePage.

From RE/MAX of New England 2010 Housing Market Outlook and Forecast