Each year The NATIONAL ASSOCIATION OF REALTORS annually surveys recent home buyers and sellers to gather detailed information about their experiences buying and selling a home. The information provided helps to provide understanding from the consumer level the trends that are transpiring and the changes seen. The surveys cover information on demographics, housing characteristics and the experience of consumers in the housing market.
Many of the demographics covered in the report show trends that have not been seen in the last 10 years. In the last two years, home buyers were urged into the market by the Home Buyer Tax Credit and record affordability.
Buyers now are facing tighter credit standards and are typically buyers who have the means to buy a home—often without financing. This change is one that is so substantial it is changing who purchases homes, who sells homes, and how the home is financed.
This last year the Maine Association of Realtors commissioned a separate study that focused exclusively on our state. Over the next several articles we will examine some of the results and interpret how they affect Maine home buyers and sellers.
The Home Search:
For 35% of home buyers, the first step in the home-buying process was looking online for properties and 10% of home buyers first looked online for information about the home buying process on a national level. In Maine, 40% of home buyers looked online for properties as a first step and 11% searched for information about the process online.
The use of the Internet in the home search dipped slightly on a national level to 88% from a high of 90% in 2009, as the demographics of home buyers shifts to slightly older repeat buyers from younger first-time buyers. In Maine, this number was 87%.
Real estate agents were viewed as a useful information source by 99% of buyers who used an agent while searching for a home in Maine, compared to 98% of buyers nationally.
The typical home buyer in Maine searched for 9 weeks and viewed 6 homes, compared to12 weeks and 12 homes on a national level.
Nine in ten recent buyers were satisfied with the home buying process nationally while 87% of buyers were satisfied with the process in Maine.
The home buying rate during the survey period of the report – mid-2010 to mid-2011 – dropped to a low following the expiration of the Home Buyer Tax Credit. In most cases buyers who were buying a home during this survey period were often in a situation where they needed to purchase a home for family changes, a job-relocation or a clear investment.
However, while sales declined, home values appear to have found more solid footing with several measures of prices showing little change compared to the year before, as reported in our 2011 Maine Real Estate Sales Reports.
Over the years we have moved across country several times before we finally ending up in Portland. As a a result, we are in a unique position of understanding all the issues when it comes to relocating to a new area. Collecting valuable information that you can trust is essential to making a good decision when comparing different geographic areas – let alone specific cities and towns. Our greater Portland Relocation Guide is designed to supplement the local data that is available on our website and provide an insider’s view of the area.
We have just completed our 2012 update of the Guide and expanded it to include more southern Maine communities. In it you will also find a synopsis of selected towns, the most current real estate statistics for the year end 2011 with comparison to 2010 and updates on the local arts scene, including happenings in Portland’s Old Port.
Education and the economy are also critical concerns, and we have included information on these topics as well. The Portland Economic Scorecard, which was just released by the city, compares the cities and metro areas in the United States.
Southern Maine also is well known for its majestic coastline and beautiful lakes, and there are many opportunities to own a waterfront home or condo. Understanding Maine waterfront real estate is a big undertaking, and we have an entire section developed to this topic, including many maps and area profiles.
Please download a copy of the 2012 Southern Maine Relocation Guide. You can also request a copy of our complete relocation packaging that includes an interactive CD and additional videos.
Within the next few days we expect to be releasing our full year 2011 home sales reports, with comparisons to 2010. Normally we prepare these reports for Portland and the surrounding communities of southern Maine as well as Cumberland and York Counties.
Portland Maine
As reported previously, inventory still continues to be an issue as the housing market struggles to show signs of improvement. The graph below reflects the single family home sales, month-by-month, during 2011 compared to available inventory.
Since approximately June there has been a slow and steady improvement in the balance between home sales and inventory levels. While still high, inventory levels in December 2011 are down 10% compared to December 2010. That is significant.
Cumberland County
Looking at the situation from a more macro perspective, inventory levels across Cumberland County improved throughout the year. As the graph below illustrates, the supply of available homes for sale is down 17.9%
Granted, we are coming from a very high level. At this time, on average, it would take just under 12 months to sell a home in this market.
For more information on current real estate sales and inventory levels, by town, visit the Local Communities section of our website -or send us an email requesting a customized report.
Laura and I had some friends over the other night and we happened to be listening to Con Te Partiro (Time to Say Goodbye) by Andrea Bocelli and Sarah Brightman.
Naturally we thought of the Fountains at the Bellagio hotel in Las Vegas. There are now many similar water shows around the world, most notably in Dubai, but none blend the music and artistry as enchantingly as they do at the Bellagio.
Bello!
Sarah Brightman is of course world renown and she is famous for possessing a vocal range of over 3 octaves and singing in the whistle register, which is the highest possible of the human voice.
Andrea Bocelli is widely regarded as the most popular Italian and classical singer in the world, and his album Sacred Arias, with over 20 million copies sold, is the biggest selling classical recording of all time.
As painfully illustrated in the recent Forbes article ranking the best state in which to do business, the Maine population is not growing in any meaningful way.
Yet nationally this is not true. During the past 10 years the population of the United States has grown nearly 30 million. In today’s economic climate we are not building anywhere near enough homes to accommodate this growth. At some point household formation will accelerate and a level of pent-up demand will be experienced.
Across the county, the statistics in real estate are starting to turn with the inventory of existing homes for sale falling from 3.8 million to 3.3 million from October of last year to October of this year. Yes, there is still a large shadow inventory of homes hanging over the market, but actually we could see a major increase in homes sold next year as banks realize that the homes they are holding (foreclosure and short sale) will sell and they could start releasing their inventory more quickly.
This scenario may not bode well for home prices nationally over the next several months, but clearing out this inventory is essential for the market to turn around and many banks are now rearing properties before they sell them so that their REO inventory does not prove to be as much of a drag upon prices.
As mentioned in our December Newsletter, Maine is not immune from the excess of inventory still available.
Southern Maine Home Inventory
The above graph illustrates the home inventory for Cumberland County. Currently there is 10.6 months of inventory available – compared to 13.4 months a year ago. The improvement of nearly 21% is significant, but still a challenge.
With interest rates forecast to remain low for the foreseeable future, we anticipate a continued move to market stability between supply and demand.
If you are interested in reports for Portland or any other local community, let us know and we can prepare a customized report for you.
In February 2011 the Wall Street Journal reported about problems that analysts had been raising with NARs (National Association of Realtors) estimates of U.S. home sales and highlighted the possibility that the trade group would have to revise its figures downward.
Early this year NAR was accused of over counting existing homes sales. California-based real estate analysis firm CoreLogic claimed at that time that sales could have been overstated by as much as 20%.
At the time NAR said it was consulting with a range of experts to determine whether there was a drift in its monthly existing home sales data and that any drift would be “relatively minor.”
Fast forward eleven months and surprise, surprise – NAR reported just this week that they would indeed make adjustments to historical sales numbers.
Sales data of previously owned homes from 2007 through October of 2011 will be revised down because of double counting, indicating a much weaker housing market than previously thought. The new data is scheduled to be released on December 21st.
In their defense NAR is highlighting several key reasons for its decision to revise sales figures downward. These include sales being reported more than once by regional multiple listing services, a decline in for-sale-by-owner properties and overall geographic population shifts.
Though sales and unsold inventory numbers will be revised downward, there will be little change to monthly percentage changes in sales volumes. NAR said its calculation of the number of months it would take to exhaust the supply of homes on the market and its estimates of median home prices will not be revised.
NAR reports national sales results based on estimates and assumptions and partial sales data. When we report sales data in Maine it is based on actual closed transactions are reports through MREIS (Maine Real Estate Information System). At the end of the year we will be updating all our our reports, by town, on our website.
At this time you can view actual home sales data through Setptember 30th by visiting Local Southern Maine Communities and then link to the city of town that interests you.
There are many ways to search for homes in Maine, especially on the Internet. You can visit one of several large national sites where most, but not all, of the homes for sale are available. These sites often include lots of generic information, all manner of advertising and feature realtors who pay to advertise there.
A second and more popular method is to do a Google or Bing search of the local town or area that interests you using common keywords such as “Portland Maine Real Estate”, “Falmouth Maine Homes for Sale” or “Maine Waterfront Property”. The results will include a mixture of national and local sites.
It is here that websites like ours are prominently displayed in the SERPs (search engine results pages). This is also known as “organic search results.”
Focusing on Local Information that is Helpful
Although it may sound like an unabashed plug (which it is) we have found that our emphasis on original local content, meaningful information and unfettered access to ALL properties for sale in Maine (via the MLS) has proven to be a good resource for current (and future) clients.
One of our best features is Market Watch, which allows clients to provide us with their personal home buying criteria and we then create a customized search. As new properties matching these requirements come on the market you are notified, via email, of all potential matches.
It is a great way to stay current – and reduce the stress of online shopping!
When people think of Maine they naturally think of the ocean. Our most common web inquiry has something to do with waterfront real estate and oceanfront homes.
Surprising the city of Portland does not have many homes that are directly on the ocean and only a limited number that have views of the ocean.
Currently there are 36 properties for sale that have water or ocean views – 21 single family homes and 15 condos. Some of the homes are located on islands in Casco Bay. The most common are Peaks and Great Diamond. These islands are accessible only by boat. (There is a ferry line that provides year round service to many local islands. For more information on the islands in and around Portland visit Casco Bay Islands.
List prices include a very wide range, from a high of $1,850,000 for a single family home located directly on the ocean. The mean price for a home is $379,000 and $349,000 for a condo.
During the last six only 6 single family homes with water views have sold in Portland while 16 condos have sold.
To learn more about coastal Maine, you can view maps and community profiles at Maine Waterfront Real Estate on our website.
For many who are new to Portland or thinking about moving her, understanding the overall economic climate is often an important issue to consider before buying a home. We often have clients who are evaluating different cities and regions across the country – trying to determine where is best in terms of business, education and lifestyle .Obtaining reliable information can often be a challenge.
The city of Portland has recently released what is being called an Economic Scorecard. This report measures data along 32 economic indicators such as employment, housing income education, taxes and overall affordability – and makes qualitative comparisons against other benchmark cities in Maine and around the country.
The data illustrates the strengths and challenges of the city. Generally speaking, Portland is making progress in sustaining and growing key economic sectors, and increasing income and education levels but still needs to improve its business and economic development competitiveness, particularly around housing and government costs.
Other Highlights Include:
Portland is outperforming its peers on education attainment, tourism and household income, leading to a higher standard of living for Portland residents.
Portland is lagging behind when it comes to the office vacancy rates, number of employees in city government and the amount of city debt when compared to peer cities.
To learn more about how Portland compares to other communities along all 32 measured variables, you can download the complete report at: Economic Scorecard.
When it comes to Portland real estate, the latest housing statistics are also available on our site at Portland Maine real estate and home sales.
When it comes to selling homes in the greater Portland area, it is still a very competitive landscape. The number of homes and condos for sale continues to be high (in Portland alone there is 9.4 months of inventory available, resulting in a unchanged absorption rate), and it is essential to use every marketing tool available to get a client’s property under contract.
Social media and the Internet are important aspects of any marketing plan, yet very few agents understand or properly employ these techniques.
Consistent Blogging Works
Blogging is still the by far the leader when it comes to drawing more viewers to a website and generating more leads – which is the life blood of any promotional programs whether its homes or widgets.
Recent statistics* have shown that businesses who blog at least 20 times per month experienced nearly 4 times more leads than those who didn’t blog, and more than 5 times the amount of leads to those who only blogged 4 times per month.
Without the ability to generate leads and market proactively, home selling is simply left to chance.
Original Content is Critical
Creating original content can be a laborious and time consuming task – yet it continues to be a provide value to potential buyers and get them to find your website and spend time on once they are there. Businesses with websites that have 401 to 1,000 webpages generate 6 times more leadsthan those with 51 to 100. The local average real estate website is considerably less than this.
So, if you are thinking about selling now or in the future, these are important points to consider when evaluating the marketing plans of various real estate agents.
Many of the demographics covered in the report show trends that have not been seen in the last 10 years. In the last two years, home buyers were urged into the market by the Home Buyer Tax Credit and record affordability.
We have just completed our 2012 update of the Guide and expanded it to include more southern Maine communities. In it you will also find a synopsis of selected towns, the most current real estate statistics for the year end 2011 with comparison to 2010 and updates on the local arts scene, including happenings in Portland’s Old Port.
Early this year NAR was accused of over counting existing homes sales. California-based real estate analysis firm CoreLogic claimed at that time that sales could have been overstated by as much as 20%.
RSS Feed