Portland Maine Homes & Real Estate

Currently in Portland  there are 390 residential homes on the market, 208 single family homes and 182 condos.  In January the Portland Maine real estate markets saw 35 homes and condos sell at 211K which was up from 209K in December and represents an increase of 6% year over year in pricing.  Overall pricing in the greater Portland region seems to have stabilized and going forward expect to see strong markets with the continued first time home buyers in Maine taking advantage of the tax credit and low interest rates.

The housing markets in Portland Maine finished out the 2009 year on a very strong note with prices leveling out, transaction volume rising, inventories decreasing and the Days on Market average holding steady.  A total of 586 Portland Maine residential real estate transactions transpired in 2009 compared with 641 in 2008, a drop of about 9% year over year.  The median sold price for all these transactions was 209K compared with 219K in 2008.  No drop is a good one, but the greater Portland region as a whole lost about 10% of its value in 2009 thus Portland was well above the mean.

Going forward I am optimistic we shall see a strong first half of the year once all parties recover from the holiday season hangover, but as the  first time home buyer tax credit expires and interest rates inevitably begin rising the 2nd half of the year may see some cooling off in the Southern Maine real estate markets.

Thanks for reading.

Today in the Wall Street Journal an article was written about how apartment rentals nationwide have hit a 30 year peak in vacancy rates for the 4th quarter 2009.   The major contributing factors being a poor economy, an excess of new units flooding the market and simply the fact that with interest rates at 40 year historical lows it is now cheaper to purchase a home in many markets than it is to rent and then on top of this you throw in the 8K tax credit further enticing parties to pursue ownership.

How has the Portland Maine Apartment Rental market faired throughout this period. Per the Housing and Urban development Agency (HUD), the fair market rental rates in 2009 for Portland were $844 for a 1 bedroom unit and $1042 for a 2 bedroom.  For 2010 the published rates ironically climbed to $856 and $1106, no big surprise the way our government often works!

Looking quickly at Craigs List and one can infer that these governmental figures are indeed a bit high.  Most 1 bedroom units in Portland seem to be listed between $600 and $800 whilst 2 bedrooms are running between $900 to $1200.  A major swing variable however in Maine apartment rentals is the heating costs as during the winter months ones heating bill could range from the low end of $50 upwards to $200 plus for even a modest sized apartment.  With the price of oil and natural gas rising, one can also expect these figures to continue increasing as well. Many units have heat included, but many do not thus making it critical to determine and factor into ones equation when pricing out apartment rentals.

The South Portland real estate residential markets saw 27 transactions take place at a median price point of 184K in November 2009.   22 single family homes and 5 condos sold.   The median days on market for these sold properties was only 29 days!  This  compares with 14 homes sold at a median price of 178K in November 2008.

The significant volume increase and also pricing increase month over month echo similar results seen in nearby communities including Portland.  With interest rates remaining low and the extension of the first time home buyer tax credit expect the real estate markets of Southern Maine to continue to improve.

Thanks for reading.

Wow…. the month of November’s numbers are the best seen to date and a great sign of the continued improving southern Maine housing markets!  Helped by historically low interest rates and the Maine first time home buyer tax credit 32 single family homes and 23 condos were sold in November 2009 at a combined median price point of 212K.  In November 2008, the median sales price was 220K, thus a 4% decrease, but well shy of the 10% year over year decreases that we have been seeing all year! Additionally compared to a median price point of  200K in October, prices dare I say increased by 4% month over month!!!!

Volume has been strong as of late and this trend continued, up 8% from a year prior and 12% month over month.

The list to sales ratio remained around 96% and current inventory levels dropped to right around 400.

For more information, please contact me anytime at 207-650-5383 or simply shoot me an email at john@greentreemaine.com

Recently asked by a prospective buyer about how the Portland Maine condo market has faired I though I would compile a few housing statistics to see for myself.  Currently there are 197 condos on the market offered at a median price of 220K.

Definitely overpriced for the most part when you take a look at the recent years sold statistics.  In 2009 thus far the median condo has sold for 184K, down 14% from 2008’s figure of 214K.  Not since 2007 has the median sales price been 220K!

This is not uncommon for sellers to have an unrealistic perspective of the market, partly our fault as real estate agents for sure .   The current median days on market of this overpriced inventory sits at a whopping 165, almost half a year!!

Reasonably priced properties are selling as one can see by the median days on market for sold condos that has hovered around 60ish since way back in 2006.

Another important factor to take note of  is the change in transaction volume!  From a peak of 368 units in 2005 the n adjusted figure for 2009  has us on pace to sell just a few more than half of 2005’s figure.
For more information and analysis on the southern Maine real estate markets  please reach out at 207-650-5383, Email: john@greentreemaine.com or by visiting my site www.mymaineproperty.com
Thanks for reading,
John Herrigel,
Green Tree Realty
Portland, Maine

Raw Data

The 3^rd Quarter of 2009 saw 189 Portland residential home sales transactions close, two more than for the same time period in  2008.  The median price point for this period was 203K, off  almost 10% from 222K in 2008.  The median Days on Market was 47, similar to 43 a year prior.  One can see prices continued to trend down in 2008, but have for the most part stabilized in 2009.  After an uptick during the economic crisis, the Days on Market median has also stabilized.

Volume for the first 3 quarters 2009 is off about 20% from 2008 primarily due to the very weak 1^st and 2^nd qtr 2009 as a result of the economic crisis.

For more information and furthe reports on real estate in southern Maine, please visit www.MyMaineProperty.com or contact me directly at 207-650-5383.

Thanks for reading,

John Herrigel
Maine Associate Broker

For the month ending August 2009, the Portland Maine real estate markets saw 55 homes sell at a median price of 198K after sitting on the market for about 60 days. This contrasts with 75 homes selling at a median price of about 200K that sat on the market for about 45 days. Thus volume is down 27% and pricing is down about 10% year over year and month over month volume and pricing were off 17% and 4%.
Please visit My Maine Property  for information on southern Maine real estate or coastal Maine real estate

As the spring season comes to an end, the state of Maine continues to weather a nasty bit of cloudy, rainy weather as of late, certainly not helping to encourage parties to buy property and real estate in Southern Maine.   Interest rates spiked earlier this month but have since returned to very low levels.  Buying activity remained quite strong in the communities surrounding Portland Maine, specifically the South Portland real estate markets.   Look for a moderatly slow Summer season as the short sales and foreclosures continue to “gum up” and slow down the entire system.  Thinking or renting instead of buying, take a look at Schneider Property Management, a Portland Maine apartment rental company when time permits.

For the  5 months ending May 31st, 2009, 66 condos have sold in the Portland Maine residential real estate market at a median price point of 222K after sitting on the market for a median of 80 days.  This contrasts with 111 sold at a median price of 202 for the same time period in 2008 after sitting on the market for a median time frame of 90 days. The market transaction volume has tapered off significantly from tightening lender restrictions and slower overall markets but the higher price point and short days on market are very encouraging for the overall market picture.

For additional information on real estate in Southern Maine, please visit www.mymaineproperty.com