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Dear Friends,
If you blinked, you may have missed the bottom of the Maine Real Estate market. Of course, we are rebounding from very low levels of activity in the first quarter. Looking back to February, the foundation was well formed for a rebound with the 10-year Treasury near 2%, low conventional mortgage rates below 5%, low energy costs, and lower home prices reflecting the changing financial landscape. It would have been hard to envision a scenario which would not have lead to a recovery in the spring market.
There are four basic legs to a real estate cycle and it seems we are entering the fourth leg of the cycle. We all enjoyed the first leg in which Unit Volume and Prices were increasing into the middle of the decade. It was 2006 that marked the beginning of the second leg in which Unit Volume began declining while Prices continued to set records. We know the third leg all too well in which Unit Volume declines along with Prices as they have for the last couple of years. The fourth leg is characterized by a rebound in Unit Volume with Prices stable to declining. It feels as if we have jumped into the early stages of a recovery in recent weeks. There are several factors which will affect the length and breadth of each leg. The most important factor at the moment is to get the supply of properties for sale, particularly distressed properties, in line with lesser demand for homes. Although, there are a few other clouds on the horizon, they do not yet appear to be threatening the recovery.
As evidence of the rebound, I would like to draw your attention to the chart at the bottom of the page which presents Maine Single Family Pending Volume for the last year. Pending Volume is a leading indicator for Sales Volume. We have seen Pending Volume nearly triple from the lows of December 2008 (461 Units) to its current May levels (1217 Units). Even more striking is Pending Volume has increased 16% from the same time period last year (and only down 3% from the same period in 2007). That is reflective of a relatively robust rebound. It appears that the housing market bottomed in January while reeling from the financial markets demise in October and November. At Legacy Properties Sotheby's International Realty, we have seen our Pending sales explode by 80% since early May from $11 million to nearly $20 million. Our clients have been well positioned to take advantage of this period of strength in Maine real estate.
There have been some very significant changes in the houseing market activity in recent weeks. It seems buyers who have been on the sidelines have emerged in large numbers with the confidence that the worst is behind us while Sellers have largely modified their pricing to reflect current market pricing. The 10-year Treasury has increased nearly 200 basis points, now approaching 4%, while pressuring conforming mortgage rates, albeit to a still attractive 5.75%. On the other hand, jumbo mortgages, which lagged on the way down, have been quite stable at or near 6% for creditworthy borrowers. The price of a barrel of oil has more than doubled to over $70 from its recent lows, which gives us some pause for concern. We are hopeful that recent rally of the Canadian Dollar ($0.90), Euro ($1.40) and British Pound ($1.65) will bring back some of the foreign buying interest we experienced last summer.
In summary, we have had a beautiful spring season with great weather, increased market volume, and broad participation in distinctive properties in all price points. The value properties sparked the rally in the real estate market, but we have seen it extend to high value properties as well. The middle market is lagging a bit, but may represent some of the best opportunities for the decisive buyer client today. |
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T H E N U M B E R O F U N D E R C O N T R A C T
P R O P E R T I E S B Y M O N T H
May-08 vs. May-09: The number of under contract properties is up 16%
*Data is State-Wide, Provided by The Maine Multiple Listing Service |
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F E A T U R E D C U R R E N T L I S T I N G S
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L E G A C Y P R O P E R T I E S
S O T H E B Y ' S I N T E R N A T I O N A L R E A L T Y
E V E N T S
Karen Wright of Legacy Properties Sotheby's International Realty and President of the Falmouth Rotary, sponsored their First Annual Cinco de Mayo Festivial. The event was held on May 3rd at the Portland Yacht Services with proceeds going towards Safepassage in Guatemala. 
The Maine Home + DESIGN Midcoast Home Show was a great opportunity for Legacy Properties Sotheby's International Realty to connect with some great clients, prospects, and local market tradespeople. We are already planning our return next year. Thanks to all at Point Lookout for a very professional event.
It's Tomorrow!!! We are planning our 2nd Annual Great Diamond Island Property Tour. We have chartered the Casablanca for the afternoon. There are more than 20 gorgeous properties for sale on the island ranging from $179,000 condos to over $1 million dollars for single family homes with deep water docks and all the amenities. We hope you can join us. Please RSVP with Marissa, as space is limited. |
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In a previous article I spoke on the importance of establishing a buyer-broker client relationship. This must be done prior to uttering those words "let's go look at property."
Each individual buyer has a different idea of what they are looking for in a home. Some prefer a unique location or rural escape or possibly a walk to town. Some like contemporary, while others may like older homes or new construction, maybe a farm, waterfront estate, condo, privacy and the list goes on and on.
So what is a broker to do when he has someone who calls and says "I am new in town and I want to look at property tomorrow? I can afford up to $500,000 and I need four bedrooms." I believe the broker should say, "Let's get together tomorrow and get to know each other. You can help me fine tune your search criteria. I will also give you a tour of the area so you can better understand what our market has to offer and the relative property values so that when that perfect home comes available, you will be better prepared to move forward."
Understanding a clients needs, wants and desires makes for a much better broker/client relationship and inevitably nets better results. Having a client learn about different towns, pricing, taxes, and schools, neighborhoods and amenities makes for a more informed client and again nets better results. This process can be done in a relatively short amount of time is an invaluable first step in starting that broker/client relationship.
Once we have established the criteria, we can begin our search in earnest. This would include the local multiple listing service and properties that your buyer-broker may be aware of that are not currently listed. We should look at what matches the criteria we set forth and even some that come close. I believe it is a good idea to look many homes early in the process as both buyer and broker learn something with each visit. The buyer begins to learn what they can accomplish within his budget while the broker starts to learn more about his clients' likes and dislikes.
During this time, candor is the order of the day. The buyer must feel free to tell the broker what they think. The broker would share his thoughts relative to pricing, value and recent sales in a particular area. Other important data would include how long the home has been on the market, the original list price, other buyer activity and any other information which helps you become a more informed buyer.
Now when you find that perfect home we are in a much better position to craft an offer with a comfortable understanding of local market conditions and values. Should you have strong interest in a particular property, your broker will do a market analysis and prepare as much additional information as possible. Remember, any information you can gather makes you a much more informed buyer when you are ready to proceed.
Now, let's go looking at property!!
By Bob Stevens
Partner / Designated Broker
Legacy Properties Sotheby's International Realty |
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I N T E R A C T I V E F L O O R P L A N
by Gary Pennington
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Don Johnson, head of our Maine Inn Brokerage Team, is pleased to recommend a Maine inn to meet the lodging needs of our visiting clients.
Situated near the center of Camden, a town that many people call the quintessential Maine coastal town, is the Camden Maine Stay Inn. The Camden Maine Stay Inn and the town of Camden share many of the same attributes: charm, quaintness, beauty, warmth, and genuine hospitality. The new owners of The Camden Maine Stay, Claudio and Roberta Latanza, have continued the Inn's long history of welcoming guests with warmth and hospitality and because they are newly settled from Italy they have added a dash of Italian allure and cuisine.
When you are not busy looking for property, Claudio and Roberta will be happy to direct you to the many attractions of Maine's mid-coast; including the spectacular coastal view from the top of Mt. Battie. Along with the many coastal enticements, they will guide you to the many fine eating establishments in the area. Please visit the Inns website at www.camdenmainestay.com or call directly 207 236 9636 and tell them that they were recommend through the Legacy Properties Sotheby's International Realty E-news. |
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Boasting majestic ocean views and unparalleled coastal scenery, the island town of Isleboro is located in Penobscot Bay about 90 miles east of Portland, and a short distance from Camden. Isleboro is accessible from Route 1 at Lincolnville Beach via the 30 car, 150 passenger ferry known as the "Margaret Chase Smith."
Home to the largest commercial fleet on the bay in the 19th Century and former respite for financial tycoons such as J.P. Morgan. Today Isleboro maintains a year-round population of around 600, which doubles in the summer months. Part-time islanders include John Travolta and Kirstie Alley.
Pendleton Point, located on the southern tip of the island where the ferry docks, is the perfect place for a picnic and features a beach, public dock, lighthouse and the Sailor's Memorial Museum. Other fun things to do include a day cruise on the Schooner Olad or a visit to the Windsor Chairmakers to watch a live demonstration of hand-made furniture being created. |
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F R O M S O T H E B Y ' S
A U C T I O N H O U S E
This month's From the Auction House highlights an eclectic sampling of upcoming auctions including "Important 20th Century Design," "Carpets" and "Impressionist and Modern Art Day Sale." The Important 20th Century Design auction begins by featuring new works created by contemporary designers in 2009 such as Frank Gehry's Tuyomoyo Bench through timeliness pieces such as the "Trumpet and Creeper" table lamp, presented by Tiffany Studios at a suggested price of 300,000 - 500,000 USD.
"Carpets" will be the focus of a June 10th auction in New York that will offer fine rugs, carpets and textiles. Pieces will include tribal and village weavings and city rugs and carpets from Europe and the Orient. "Impressionist and Modern Art Day Sale" will take place on June 24th and 25th in London and will showcase paintings, sculptures and other art by such giants as Monet, Renoir, Picasso and Giacometti.
Please click the images above to see more details about each auction.
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