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.

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.

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.

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.

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.

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.

We do know, however, that a note was written in May 1897.  It included scribbles and cross-outs and of course the famous line “The reports of my death have been greatly exaggerated”.  In this note, Mr. Twain was clearing up confusion about an obituary; that apparently was intended to be about his cousin, not him.

Given this background, the death of the American homeowner has also been greatly exaggerated.  Since the housing bubble burst several years ago, many so-called experts have predicted the end of home ownership as an important part of the American Dream.

As we approach spring 2013, these dire forecasts have not come to pass.  Let’s take a look at some of the most common:

Dire Predication:

After the housing crash, Americans would no longer believe in home ownership and what it has to offer.

Current Reality:

While home ownership has indeed fallen from a high of 69% in 2004 to 65% at the end of 2012, the desire to own a home is still strong.  According to several surveys:

• 73% of Americans say it is a good time to buy a home. (Fannie Mae)

• In every age group from 25 to 65 years old, over 80% plan to buy a home in the future. Additionally,  76% of those over 65 plan to buy a home in the future. (Joint Center for Housing Studies at Harvard University)

Dire Predication:

Those families that were forced from their homes during the housing crash would never look at home ownership in a positive light again.

Current Reality:

• Many of the sellers who lost their home to a short sale or foreclosure over the last six years are re-entering the housing market as buyers. It is projected that over 700,000 people in this category could be in the market for a home in 2013 and that the number will more than double to over 1.5 million in 2014. (Moody’s Analytics)

• Nearly 80% of those homeowners who decided to strategically default (walking away from their house and mortgage) over the last few years have expressed a desire to buy a home again within the next 12 months. (YouWalkAway.com)

Dire Predication:

Young adults, after seeing their parents suffer major loses of equity, would not embrace home ownership especially as a financial investment.

Current Reality:

Recent studies have actually consistently proven that just the opposite is true:

• 72% of young adults between 18-35 years old see home ownership as part of their personal American Dream. (Trulia)

• 75% of young adults between 18-35 years old see home ownership as an indicator of success. (Realogy)

• 94% of young adults under 25 and 96% between the ages of 25-34 plan to buy a home. (Joint Center for Housing Studies at Harvard University)

• 79% of young adults under 25 years old and 86% of young adults 25-34 believe that owning is a better financial decision than renting. (Joint Center for Housing Studies at Harvard University)

Reference: The KCM Blog

These increases have a dramatic impact on home buying power, as illustrated below:

Infographic courtesy of KCM.

At this time there are six single family homes on the market priced about $400,000 and only one condo.

Living Near the Ocean

8 Seabreeze Ave located away from the Pier on the northern end of Grand Avenue and is only steps away from the beach.  From several rooms and decks view of the water are possible. In fact, the master bedroom has its own private deck!

The home has been updated and is ready for enjoyment this summer.  For more information, visit: 8 Seabreeze Ave – Old Orchard Beach Real Estate.  To learn more about Old Orchard – Old Orchard Beach Community – where you will find the latest city information and a link to our LifeStyle Search.

This lack of inventory may turn out to be an on-going situation as we approach the spring market in Maine – as well as nationally. At the end of February there were 1,518 homes available for sale – the lowest level since April 2005!  That is surprising!

Yet, there is a lot of variability by town and in price ranges. For example, the inventory of single family homes in Portland is down 9.5% in February vs the previous month. Falmouth inventory is down only 1.3%.  The inventory of homes priced at $500,000 and above is unchanged from last month – albeit down considerably from 2012.

According to a report in the Wall Street Journal, some reasons for the decline in inventory include:

• Homeowners who purchased during the height of the market have little or no equity and cannot sell without taking a loss, and therefore unwilling to put their homes on the market.

• More investors are in the market.

• Banks are slower at foreclosing.  There are more efforts being made to encourage loan modifications instead.

• New construction is still low.

Yet with the reduction in inventory, home prices are not increasing in any significant way, as the results in 2012 indicated.  Across the state of Maine the median selling price only increased 3% and this was in comparison to 2011, which actually declined from the year before.

Our prediction, however, is still a modest increase in pricing by year end, especially in the middle market.

In these market conditions, if you are selling and don’t have an offer within a few weeks, it is clear that you are priced too high.