It wouldn’t be Portland if there wasn’t controversy!  The most current debate is around what to do with the Congress Square Plaza.  Rockbridge Capital, who purchased the Eastland Park hotel in 2011 and is currently in the final stages of a $40 million renovation, is trying to persuade city to sell two-thirds of the plaza.  If this is done, they will build a 9,400 sqft event center as part of the overall project.

The historic 86-year-old hotel is scheduled to reopen in December as the Westin Portland Harborview Hotel.

Public discussion has been going on for months and several conceptual plans have been presented.  As expected (and typical) opposition groups have been vocal, and as a result various plans have been presented by the developers.

For a review of the plaza’s history and potential new design, you can download the report: Congress Square Plaza.

The most recent hurdle to be passed was a meeting of the City Council’s Housing and Community Development Committee at the end of May.  In a 3-1 vote it was decided that the city should move forward with negotiations to sell the park property to Rockbridge Capital.

Prior to this decision, the task force assigned to find solutions to improving the plaza was deadlocked 6-6 as to whether to support the Rockbridge Capital plan.  This led to tweaks in the design and the subsequent HCDC meeting, public review and subsequent 3-1 vote.

Passion on All Sides:

Some comments on the plan, from those in attendance at HCDC meeting include:

• “We need to improve the plaza, not privatize it….”

• The new design was not “substantially different” from previous ones.

• Repurposing the plaza as a true plaza .… does indeed net us less open space, but it unequivocally nets us better open space….

• The event center would “enhance what is happening to Congress Square” …. the event center  proposal would be “a fantastic opportunity that will not happen again anytime soon.”

• “The vast majority of Portlanders will not want to see this park go away….” (really?)

• …. opposing it in favor of improving the existing plaza is the result of a “misconception,” because there are no plans to do so.

Next Steps

Following negotiations (assuming they are successful), a vote will be required by the Portland City Council to approve the sale.  There will still be ample time, however, for more debate – as expected.

As reported by CoreLogic at the end of the first quarter, 19.8% of all mortgages as underwater.  This represents 9.7 million homes!   The good news is that this is an improvement from the end of 2012, when this statistic was 21.7%.

The report illustrates just how important rising home prices are for the nation’s bruised housing markets.  The improvement is due largely to rising (albeit slowly) home prices, though foreclosures and short sales have also eliminated some underwater households.

While various legal settlements and government programs have encouraged – and in some cases, forced – banks to adopt write-downs, principal reductions haven’t figured heavily into the equity-restoration story so far.

The improvement is due largely to rising home prices, though foreclosures and short sales have also eliminated some underwater households.

This change also follows a period in which government and industry officials have had a heated debate over the merits of principal write-downs, where banks modify mortgages by slashing loan balances.

Long Term Issues Continue

Yet this problem will continue to linger for years to come.  The report also indicates that on top of the 19.8%% of underwater homes, another 23% with a mortgage have less than 20% equity, meaning those borrowers may be less likely to move because they don’t have enough money to make a down payment on a home that’s comparable to the one they own.

Around 4.4% of borrowers have just 5% equity, meaning they could fall back underwater should prices drop.

Regional Disparities

The report shows that among major U.S. metro areas, negative equity is highest in Tampa, where 41.4% of borrowers are underwater, followed by Miami (40.7%), Atlanta (34.5%), Chicago (34.2%) and Warren, Mich. (33.6%).

As a comparison, at the end of 2012, 7.9% of Maine home mortgages had negative equity – one of the lowest levels in the country. The complete 4th quarter report from CoreLogic can be downloaded here: Negative Equity.

Homes for sale have been added to the Maine Home Connection Lifestyle Map Search.  Now you can use the interactive spatial map to display all properties for sale – homes, condos, land and multi-family.

The Lifestyle Home Search allows you to select an area and then overlay lifestyle attributes that are important to you.  The map allows you to identify the relational position of all properties and their respective communities.

Using the Map to Find Homes & Lifestyle Choices

The map opens with a display of homes grouped by location. Hover over any green icon and you will see the zip code of the area included. The number of properties for sale within that area is also identified.  For additional instructions, you can use the help videos on the left-side navigation.  Some other features of the map include:

To begin customizing your home search, open the Homes tab on the right side of the map. You can refine your search using the predefined selection criteria – or follow the link to the Advanced Search.

Use the Lifestyle tab to select those amenities that interest you. Search schools, communities, shopping, personal services and more in relation to a home for sale. You can easily display a radius around your selections using the distance sliders.

The three most important things to consider when buying a home are Location, Location, Location! Use the Area tab to explore school districts, zip codes, cities and counties and access local demographics.

You can create and save an unlimited number of customized searches. Use the Alerts tab to manage all your searches. Click the arrow to the right of any search to view its properties or make changes.

Get the latest Maine real estate news from Maine Home Connection. Our most recent newsletter, Inside the 207, has been recently published. Each month we update local home sales statistics, market trends and the latest issues affecting greater Portland and southern Maine real estate

Join Laura for a review of the Maine Real Estate Market

In Cumberland County sales of single family homes through May 1st are up 9.1% versus the first four months of 2012. The median price is up 4.7%. Statewide, sales and prices are up 7.3% and 3.3% respectively.

Download a copy of Inside the 207 – May 2013.

This month we also have a special feature on the South Portland real estate market.

Often overlooked, the city of South Portland is the second largest real estate market in southern Maine. In 2012 single family home sales were up 15% versus 2011. The median price also improved significantly, increasing 9%.

Recent Sales History

Single family home sale peaked in 2005, when 340 homes were sold.  By comparison, it is interesting that Portland reached its record level one year later, with 570 sales. Excluding a slight rebound in 2010, the median selling price decreased from $226,000 in 2006 to a low of $197,000 in 2011 – representing a loss in equity of nearly 13%.

2012 was the first year of sustained sales and price improvement in South Portland and most Maine communities.

The rebound, however, although dramatic, come on the heals of retrenchment in 2011, thus tempering the gains, especially on the price side of the equation.

The year end median price of $217,000 was comparable to levels from 2007.

2013 Sales Continue Strong

Sales continue to improve in 2013.  Through April 30th single family home sales were 70 compared to 59 during the first four months of 2012 reflecting an increase of 18.6%.  This trend has continued for pricing as well as the median price of $220,000 is up 13.9%.

Although a small part of the market, sales of condos has increased as well.  So far this year there have been 18 sales compared to 13 during the same period of 2012. Pricing, however, is essentially flat.

Lot to Offer

With approximately 24,000 residents, the city of South Portland is the fourth largest in Maine. It features a thriving and diverse business climate that includes a bustling waterfront and the largest mall in the area.

There are also many lovely neighborhoods and communities. Loveitt’s Field , Danforth Cove and  Willard Beach  all can be found near the waterfront. A little more inland, especially near the high school, there are several neighborhoods that feature easy access to walking trails, nearby shops and open spaces.

When it comes to education, the city is committed to providing the finest facilities and advanced methods of learning. At this time the high schools is undergoing a $47.3 million expansion and renovation project that is scheduled to be completed in the spring of 2015.

Tightly Concentrated Market

At this time there are 64 properties under contract – a very high number – and only 61 currently on the market.  There is a wide disparity, however, in the price range of homes available for sale.  60% are priced below $250,000 and only one home is priced above $600,000 – and that is at $2,400.000 in Loveitts Field.

In the price range of $350,000 to $450,000 there are only 10 homes on the market, and 3 of those are new construction.  Of special distinction is 20 Checkerberry Circle.  This four bedroom home, which can be viewed in the video below, was built in 2007.  It is in perfect condition and provides a very private location – yet is close to everything.

For more information on South Portland, including sales history, local amenities, lifestyle search, school updates, demographics and much more, visit: South Portland Maine on our website.

Google and the National Association of Realtors (NAR) recently worked together to study how people search for homes. The result is the report – The Digital House Hunt: Consumer and Market Trends in Real Estate.

Some of the highlights of this report provide important guidance to both home sellers – and the agents who represent them.

• 90% of home buyers searched online during their home buying process. This statistic has continued to grow for many years.

• Real estate related searches on Google have grown 253% over the past 4 years

• Video satisfies multiple research needs for home buyers. 86% of people use video to learn more about a specific community or town; 70% want to see more details about the interior of a home that interests them (where pictures simply cannot suffice).

• YouTube Is the top video research destination for home shoppers. We have been focusing on video for several years now – and Maine Home Connection currently owns 7 of the top 10 videos in the Portland real estate market on YouTube!

• Only 28% of all home buyers use the newspaper or other print media to look for homes. This has been decreasing steadily each year.

The entire report is included below:

To learn more about how we market homes, visit: Home Marketing – Maximum Exposure.

Our March 2013 Newsletter, Inside the 207, has recently been published. This issue includes the most recent home sale updates for Greater Portland, Cumberland County and of course the entire state of Maine.

Additional features include an overview of the Portland condo market and a prediction of what to expect in 2013, a update on home ownership in America and a look back to 2012 in video

You can download you copy of the most recent edition at: Inside the 207 – March 2013. Past issues are also available at the Media Archive.

The North Deering neighborhood of Portland has always been a desirable area. And that continues cis located only minutes from the downtown business district and of course the Old Port. Nearby are schools, shopping and outdoor activities such as hiking trails, golf courses and many other amenities.

Homes in this area typically sell quickly and often the inventory of available homes for sale is low. As we enter early spring 2013 there are less than 15 single family properties for sale. The most expensive are located along Hope Avenue and are priced just below $500,000.

Since 01/01/2013 there have been eight sales at an average price of $214,400. During this same time period in 2012 there were ten sales at an average price of $227,361. There is clearly a high degree of volatility in pricing based on the mix of homes that do actually sell. Interestingly, there are currently 14 homes under contract at an average price of $263,372.

67 Olde Birch Lane

A beautiful home that just recently came on the market was 67 Olde Birch Lane. This three bedroom home features hardwood flooring, custom trim, two fireplaces, a finished basement, an in-ground pool with cabana bar and a separate play area. Join Laura for a tour of this home.

To view all homes for sale, use our Home Search to gain direct access to the MLS. You can create custom searches and get email updates.

Recently Maine Biz featured an article on condos – which Maine Home Connection participated in. The overall position being put forward was that the condo market in Portland was poised for an increase – after several years of stagnant sales volume and declining prices.

Long Road to Recovery

At the height of the housing bubble in 2005, Portland condo sales peaked at 368, with a median selling price of $232,558.  During the next six years sales steadily declined, reaching their lowest level in 2011 at 189 and a median price of $215,000.  In 2009 the price had dropped to $185,000.

Yes, sales volume did increase significantly in 2012, as 228 properties were sold – yet pricing continued to be pressured as the median price decreased to $199,600.  At year-end, inventory was still relatively high and buyers had many choices.

Sense of Optimism

Changing demographics is influencing codons buyers in Maine and across the country.  There is a growing sense of optimism that 2013 will see an overall improvement in condo sales, especially in urban areas. Some of the key points made include:

• The desire for downsizing, especially among the baby boomers, without sacrificing their quality of life.

• The interest of Gen X and Gen Y in more sophisticated urban living, which cities like Portland can provide.

• Historic low interest rates and the overall lower price point afforded by condos in general.

• The increasing appeal of condos as investment properties

What Happens Next

At this time, there are 84 condos currently on the market with a median list price of $219,000 – interestingly above the median point for all sales in 2012.  The mix of properties is also revealing.  51% are priced below $225,000; 32% are priced between $225,000 and $400,000 and only one property is priced above $700,000.

Although this inventory level may appear high, many of the units have been on the market for a long time and buyers today are often frustrated by the lack of “quality” units available.

Which leads us to the next point: During 2013 developments under construction are expected to add almost an incremental 100 units to the market – virtually at prices above current selling prices.  On top of that, the second phase of the Bay House is planned at 52 more units.

Given this expansion and expected higher listings prices, it really leads to questions about whether Portland can absorb this increased inventory in the short term – let alone the intermediate term.  Or, will the overall quality and desirably of the properties available meet the needs of the more discerning buyers entering the market?

Additionally, is Portland truly a market for multi-level, multi-unit developments?  Historically it has not been, but with changes in the demographics indicated above things might be changing.

For the last several years we have been providing our readers with the Google Zeitgeist video, but for some reason completely forgot to do so as 2012 came to an end. Well, here it is!

What also was surprising was learning that Google has been preparing its Year-End Zeitgeist for 12 years.  The Zeitgeist, which is an in-depth look at the “spirit of the times” is based on how and what people actually search for on Google’s Search Engine.

In the last year there were 1.2 million searches in 146 languages. The most searched term worldwide was for Whitney Houston, who died in February 2012.  The most searched event, not surprisingly, was Hurricane Sandy.  The English-Irish Pop-Boy Band, One Direction, was the most searched image.

As of today, 14,451,275 people have watched this video – which in itself is amazing.  To learn more visit Google Zeitgeist 2012.

When it comes to Maine, in 2012 all searches relating to the state were their highest in the month of July.