Portland Maine was again the scene of the WCSH6 Sidewalk Art Festival.  This year represented the 45^th edition of the annual event.

Under a beautiful cloudless sky and pleasant temperatures approximately 300 artists and photographers had their work on display in the Monument Square area.

It is said to be one of the largest of its kind on the east coast, and if the large turnout of residents and tourists was any indication, it surely must be.

Of course there was a contest.  The winners were: First Place – Emily Trenholm; Second Place – Carol Boucher and Third Place Mary Jane Cross.  Each winner received a cash prize, the largest being $1,000.

The judges for this year’s festival were Henry Bonner, Katie Brown, Kimberly Curry, Mike Moltby, Lauren Silverson, and Julia Kirby.

Auto Show:

For the 10^th year there was also an auto show featuring classic and vintage vehicles.

Some of the more classic cars on display included at 1962 Austin Healey 3000, a 1931 Ford Model A, a 1929 Model A Pick-Up Roadster and a 1915 T Bucket.

Bad news really does travel fast, especially as it pertains to the economy in generally and real estate in particular.  As everyone reported last month, us included, home sales fell in July – and the drop was pretty dramatic.

However, what gets lost is that 2010 sales results are better, year-to-date, than they were in 2009.  Although this may not be true in all Maine towns and cities, the following is information as it pertains to Portland Maine real estate, focusing on single family home sales.

In 2009 through August 31^st there were 264 homes sold at a median price of $217,625.  The median days on market was 46, the percentage of selling price vs list price was 96% and the median price per square foot was $141.30.

Now jump ahead to 2010 and look at the year-to-date sales results through August 31^st. A total of 286 homes have been sold, representing an increase of 8.3%.  The median selling price was $220,500, again reflecting an increase – although a modest one – of 1.3%.  The median days on market was 39 and the percentage of selling price vs list price was 97%.

Current Inventory

At this time, however, there are a lot of homes on the market, thus making the competition for each sale very intense.  The median listing price is $275,000, which does appear to be a bit high compared to what has sold this year and last year.  However, this price might be skewed somewhat by an unusually larger inventory of waterfront properties currently on the market.  Yet, the numbers are what they are.

Thoughts on the Market

It will be important to see what happens over the next few months, and whether July’s results were an aberration or the beginning of a new trend.  I think everyone expected to see a sales drop once the tax incentive worked its way through the system and was completed.

When it comes to homes sales in Portland another key thing to keep in mind is that comparisons to 2009 reflect increases from a very poor year in real estate.

In coming posts we will update sales results for other surrounding towns and will have our third quarter YTD comparisons done as soon as information is available from MREIS, our source for this data.

July home sales in Maine followed a national pattern – a significant drop in year over year results that was somewhat anticipated, yet stunning in its absolute number.

After months of increases, sales of single family homes in Maine dropped 30% compared to July 2009.  For the month a total of 807 homes were sold versus 1,154 the year before.

This decrease follows an encouraging first six months of 2010, which reflected a 27% increase over 2009.

Most observers of the national real estate market expected a decline in sales in July and August as the things settled down following the expiration of the tax credit, which in many ways created an artificial surge in demand earlier in the year. The real question is whether we are experiencing a “pause” in market activity, or entering a period of continued declines in sales.

Interpretation of Price Improvement

The median sales price for homes in Maine increased by 4% to $172,500 in July 2010 compared to July 2009, continuing a positive trend for the year that may reflect a slight improvement in the sales of higher priced homes and an overall stabilization of home prices in many areas of the state.

In Cumberland County the median price in July 2010 was $247,500 compared to $234,900 in 2009.  A three month rolling average of May, June and July, which reflects the most recent sales activity, yielded 3.8% increase statewide and a 3.3% increase in Cumberland County. During the last three months York County has recorded a 6.9% increase in median prices over 2009.

It is important, yet extremely difficult, to separate the market affects of the change in the mix of homes sales versus actual improvement in prices, especially on a macro level, whether it be statewide or by county.  Each town and each local community include considerable variation.

National Perspective

According to NAR, the sales pace of all homes – single-family homes, townhomes and condos is at its lowest rate since NAR began tracking the figure in 1999. Sales of single-family homes, which account for a vast majority of all transactions, are at the lowest level since May 1995.

Existing home sales sank 27% in July, nearly twice as much as analysts had anticipated, to a seasonally adjusted annual rate of 3.83 million units.

Inventory has also continued to increase, rising 2.5% to 3.98 million existing homes for sale. That represents a 12.5-month supply at the current sales pace, the highest since October 1982 when it stood at 13.8 months.

A six-month of supply is considered normal.

Locally and nationally the next several months will be critical, as the housing market and the broader economy prove to be closely intertwined and is a poor sales month in July a harbinger of things to come over the balance of the year.

Maine sales statistics are based on MREIS reporting data.

In a recent survey of potential home buyer attitudes more than 72% of American adults confirm that owning a home continues to be part of their personal dream and ambition. This is down from 77%, according to a similar survey only six months ago.

As you dig into the results the findings are a bit conflicting.  Approximately 23% responded that their attitude toward homeownership has grown more positive in the last six months, while 19% say they feel more negatively.

Among those adults who are renting, 27% say they never intend to buy. Of the renters who do plan to purchase eventually, 68% said it would be more than two years before they do.

The factors that would encourage them to buy now are and the percentage of respondents who feel that way were:

• 47% -  Able to save a down payment
• 28% -  Land a new job
• 27% -  Interest rates stay low or fall lower
• 24% -  Some other factor that persuades them that buying makes financial sense
• 23% -  Get a raise
• 9% –   Local real estate market stabilizes

This report was prepared by Trulia. For more details regarding home sales statistics, visit Market Values on our website or request a customized report.

Over the years Portland has earned many national awards and accolades as a great place to live.  Some are pretty respectable – like the nod from Forbes Magazine about one year ago.  Others, as you would expect, are a bit sketchy or hokey.

That being said, Portland Maine was honored by Outside Magazine as being named in their Top 25 Dream Towns, published in August 2010.

In fact, we were considered the “Best in the East” and beat out Chattanooga, TN for the top spot.

As you look through the results the categories, not surprisingly, focus on outdoor activities.  If you visit the website and read the comments, you might find some of them a bit amusing, especially how Portland is sometimes viewed by others around the county.

According to the selection criteria, although the quality of the sporting life was an important factor, it wasn’t the only one.

To make the list, a town had to exhibit a balance among cultural activities, a steady business climate and a consistent housing market.

According to foreclosure listing firm RealtyTrac Inc., lenders repossessed nearly 93,000 properties in July. That was up 9 percent from June and 6 percent from the same month a year earlier.

Across the country, July was not a good month for homes in foreclosure. According to RealtyTrac lenders repossessed approximately 93,000 homes in July, representing a 9% increase from June and a 6% increase from the same month in 2009.

These numbers represented about 1 out of every 400 homeowners received a foreclosure notice – and the rate was even higher in states like Nevada, California, Arizona and Florida.

In New England the rate of foreclosure was about half the national average, and in Maine and Vermont it was less than one-quarter as bad.  In July, the foreclosure rate in Maine was one in every 2,012 homes.

Video Report from NECN

According to statistics at the RealtyTrac website, in southern Maine York County currently has 111 homes in foreclosure compared to only 33 in Cumberland County. Currently York County has the highest number of foreclosure listings in Maine. The rate of filings in Cumberland County represents 1 in every 4,053 housing units.

Statewide, the average YTD sales price of a foreclosed home was $189,543 compared to a national average of $238,704.

If you ever thought real estate in Maine was expensive, how about this home?  Located in Mumbai, the prestigious “Antilla” is a 27 story mansion reported to be the first $1 billion home anywhere in the world.  The real estate appraisal value is more than any other recorded property.

Second place on this spectacular list is the 80,000 square foot French chateau known as The Villa Leopold.  It is priced at over $506 million. The villa was built by the Belgium king Leopold II in 1902 as a gift for his mistress.

Situated in south Mumbai (Financial capital of India in the state of Maharashtra) Antilla towers over 570 feet. It is owned by Mukesh Ambani, the world’s fifth richest man and the head of Reliance Industries, India’s largest company.

Opulence is evident everywhere.  There are ballrooms, lounge areas, lobbies, palatial bathrooms and double height ceilings – which are fitted with magnificent chandeliers. The most expensive furniture, cutlery and lavish decors adorn the interiors of the home. There are private health clubs for each member of the family – for a total of five!  There are six levels of parking garages for the collection of 168 family cars, and retractable stairs.

There is a private cinema as well and each level boasts of a lush garden. Most of the house is built from glass and has about 600 servants for it’s normal maintenance. Mr. Ambani has claimed that the floor space in his home is much more than that of the palace of Louis XIV at Versailles.

Today the most expensive home for sale in Maine is listed at a cool $10 million and is located in Bar Harbor.  The highest recorded sale was $10.5 million in 2004 for an oceanfront property located in Seal Harbor.

Single family home sales Maine were 10.6% higher in June 2010 than they were during the same time in 2009.

This according to a published report by the Maine Real Estate Information System (MREIS) on Thursday of last week.  Additionally, the median sales price demonstrated improvement as June’s result was $175,000, up 2.9$ over the previous year.

During the first six months of 2010 total single family homes sales totaled 5,130, representing a significant increase of 27.7% compared to the first six months of 2009.

On a national level, NAR reported that June sales increased 8.5% compared with June 2009 and that the national median sales price increased 1.3% to $184,200.

Cumberland County led the way with 1,333 home sales during the first half of the year, compared to 974 during the first six months of 2009.  The median sales price in 2010 was $225,000 compared to $216,750 in 2009.  York County was second with 851 sales, up 20.1% from the previous six months.

During the last two years new home construction has been slow, to say the least.  Currently in Cumberland County there are 48 “To Be Built” homes available for sale priced below $225,000.

In this price range, if you look at it closer, there are only 20 homes offering at least 3 bedrooms and two bathrooms.

Of these homes, very few have been started.  Most builders do not have the financial capability to build homes without firm contracts in hand.

An exception to this situation is Nick Estes of Estes Custom Builders. He has been building homes all year and his current project at 330 Bridge St in Westbrook is a perfect example of his commitment to quality and value.

Estes Custom Builders specialize in custom home construction and renovations in southern & central Maine. Their team is comprised of experienced individuals who are focused on delivering a truly unique home that will reflect your personal desires and dreams. They believe in bringing your vision to life, yet realize that pleasing the eventual homeowner requires more than simply building a great home -  it requires performing on time and on budget. They use the latest tools to assist with budgeting, design and monitoring the construction progress.

We are proud to be associated with Nick and his team and encourage you to learn more about this property or set up a meeting to discuss how he might be able to help you with your construction needs.

Estes Custom Builders on TV

A complete list of home plans is available on Nick’s site.

The discovery of gunpowder and the invention of the first fireworks (bamboo cases or rolled paper tubes filled with explosives) are historically traced to the Chinese over 1,000 years ago – although there is some evidence that they may have first appeared in India. At that time it is thought that the loud noise (of firecrackers) would scare away evil spirits.

Fireworks made their way to Europe sometime in the 13th century, probably carried back from the East by Crusaders. Their popularity grew, and by the 15thcentury they were widely used for religious festivals and public entertainment. The Italians were the first Europeans to manufacture fireworks and were the undisputed European leaders of  fireworks-making through the end of the 17^th century.

The first recorded display of fireworks in England was in 1487 to celebrate the wedding of Henry VII in 1487.

By the time of the American Revolution, fireworks had long played a part in celebrating important events. On July 4, 1777, Philadelphia marked Independence Day by adjourning Congress and celebrating with bonfires, bells and fireworks.  In 1789 George Washington’s inauguration was accompanied by an impressive display.

On June 24, 1826, Thomas Jefferson sent a letter to Roger C. Weightman, declining an invitation to come to Washington, D.C., to help celebrate the 50th anniversary of the Declaration of Independence. It was the last letter that Jefferson, who was gravely ill, ever wrote.

Local Fireworks

With the city of Portland looking for ways to reduce expenses, the annual fireworks display became a casualty.  However, due to the efforts local business leaders, financing was secured and the celebration will take place.  A partial list of fireworks locations is below:

• Portland: 9:30 PM – Eastern Promenade
• Kennebunk:  9:00 – Beach Avenue/Narragansett Point
• Freeport:  9:30 – Morse Street School Ballfield
• Scarborough:  9:15 – Old Scarborough Dump
• Ogunquit: 9:15 Main Beach – East of Parking lot
• Old Orchard Beach: 9:45 – On beach in front of Palace Playland
• Saco (7/3) 9:30 – Funtown/Splashtown parking lot
• York 9:30 – Ellis Park/Short Sands Beach

Enjoy the holiday!