Tanquility on Saturday Pond in Otisfield
For potential buyers of Maine lakefront property, knowing where the bottom of this real estate market is could provide a helpful directive. If we’re at the bottom then now’s the time to find the right property and get out the checkbook.
A recent correspondence from a mortgage lender I know makes a pretty good case that maybe the bottom is here – and he’s not using his Magic 8 Ball to come to his conclusions. His numbers are similar to those I’ve seen from others in the industry and talk about national numbers and state numbers. If we extrapolate a little, we can apply the general positive movement in the larger market to our niche market – lakefront property in southern Maine. Here’s what he had to say:
“We are just starting to see the first glimmers of a bright future for the housing market and the overall economy. The data on the present $8,000 home buyer tax credit show that the credit has had its intended impact – sales have jumped in recent months to a projected 5.1 million for the year and inventory has been trimmed, thus stabilizing home prices noticeably. Congress is working on a number of bills to extend the buyer tax credit into 2010 and some of these bills would allow all homebuyers to benefit from the tax credit.
Locally, sales of single-family existing homes in Maine rose a strong 22.74 per cent in September 2009 over the same month in 2008. The median sale price of $167,000 was a decrease from last September’s number, but an increase from $162,000 from last month’s number. Also, home values in Cumberland County have increased slightly over last quarter by 0.8% to an average of $259,900, another good sign that we may have hit bottom.
Mortgage rates have stayed consistently in the low 5s. While the short term outlook is good, many industry professionals are expecting rates to increase in the spring.”
Our own anecdotal evidence shows more activity than usual for this time of year with many incremental price reductions on a variety of properties. I think there is a connection here. Granted, the high end of the lakefront market is still pretty much stagnant, but for the low to mid-range properties, “good value” hunters are out there – and properties are going under contract.
Dana Earls, of the Merrimack Mortgage Company in Portland provided me with the statistics and italicized comments. You can read more on their website at www.merrimackmortgage.net .
If you’d like to check out all the current lakefront listings in the state of Maine you need go no further than our Lakefront Locator. Just click and go!