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Dear Friends,
We have had some exciting economic headlines hit the news wires this week combined with strong support from the Investment community. Consumer Confidence is surging ("Consumer MOJO Lifts Profits"- WSJ 4/26/10), improvement in the Manufacturing segment of the economy ("Manufacturers See Rebound" - WSJ 4/27/10), a robust performance at the New York Stock Exchange (DJIA comfortably hovering around the 11,000 mark) and encouraging March home sale statistics. In our most recent newsletter, we spoke of the "New Norm" for real estate in Maine as a gradual recovery in confidence, liquidity, sales volumes, supply/demand dynamics and ultimately price stability. We continue to believe that is the most likely scenario for most of the Maine real estate market segments despite the very strong price and volume resurgence evidenced in the latest MAR home sales report.
The monthly press release from the Maine Association of REALTORS� clearly demonstrates that the market has come a long way from the depths of March 2009. The release headlined "Maine Home Sales up 46% in March - Statewide Median Sale Price increases nearly 10% since March 2009" was not unexpected or surprising given the very low comparable sales data from a year ago.What is a bit more interesting is that Maine significantly outperformed the national market statistics for the same period. Nationally, existing single-family home sales only rose 13.3% while prices were nearly flat (+0.6%). This can largely be explained by the fact that Maine did not see the rapid growth in new housing stock during the boom times of the last decade. As such, there is not nearly the excess inventory to be absorbed by the markets.
The parallel with the stock market performance is striking. The DJIA has had to rally more than 60% from the lows of March 2009 to settle at a level which is approximately 20% below the all time highs. Maine real estate prices have had a modest recovery from the lows, yet also remain near 20% +/- below the highs. Although there can be a significant difference between counties, towns, price ranges and housing stock, every sector of Maine housing has experienced a significant decline in value in this protracted downturn.The chart below exhibits the quarterly price performance for Maine for the past three years.
There are many encouraging signs on the horizon for a return to normalcy in the Maine real estate market. Interest rates have been and continue to be very attractive despite the federal government's retreat from supporting the secondary trading market for mortgages. This had been a concern on the horizon which we appear to have weathered with little negative impact on retail mortgage lending rates. With the "First Time Home Buyer" program ending today, there is renewed activity and interest in the middle market unrelated to the "Repeat Home Buyer Credit" to carry us forward. Consumer confidence continues to improve. Residential listing prices, which have been chasing the market down for four years, have increasingly come into line with the market realities. The US dollar is positioned to bring some foreign buying interest from England and Canada as our real estate looks to be good value for the discerning international buyer.
If we have learned one thing during this protracted market downturn, it is that thoughtful pricing of homes is absolutely critical for success. Unlike a year ago when the market dislocation made it virtually impossible to accurately price homes in nearly every price point, today there is more liquidity, more sales data, and more economic stability, leading to better pricing accuracy. Properties priced to reflect the current market pricing and conditions are selling while overpriced inventory continues to get very little buyer inquiry or showing activity.
We expect that the next couple of months will continue to generate improvements in all of the real estate metrics, albeit at a slower rate of year-over-year improvement. This is not reflective of weak conditions, but rather the improvements which took place in the middle of 2009 will be reasonably strong comparable statistics. Traditionally, May through October characterize the peak selling season. We see strong evidence that Maine will enjoy such a period in the months to come. |
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Situated on a sun-kissed peninsula, you'll be inspired and
rejuvenated by this magnificent waterfront retreat. The two-story screen porch,
soaring oversized windows, outdoor terrace and use of natural materials
including the granite hearth, slate floor and exposed beams blur the lines
between indoors and out. The 4 bedroom, 3 � bathroom residence offers over
3,000 square feet of luxurious living space, gourmet kitchen, spa bathrooms,
sauna and stunning water views from most of the house. The eclectic but refined
furnishings feature local and exotic paintings including a lithograph from
Florence and paintings from Kenya. Other interesting pieces include an array of
antique farm tools tastefully displayed and a grand chandelier from Santa Fe.
This abode is filled with cozy and sunny nooks perfect for curling up with a
book or taking an afternoon rest, as well as grand entertaining space
overlooking the protected cove.
Outdoors you'll revel in the breathtaking gardens and
comfortable outdoor living space. Boaters and paddlers will enjoy the easy
access to desirable Townsend Gut, nearby islands and Atlantic Ocean. Minutes
from the shops, galleries and restaurants of Boothbay Harbor, this exclusive
residence offers convenience and privacy.
Rates: Available for season from Memorial Day to Labor Day. Also available with
Carriage House. $15,000/month.
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Maine Summer Rental Property - Are you looking for the
ultimate Maine experience? This home is located on the beautiful coastline of
Cape Elizabeth. It offers bold Atlantic frontage in a classic Maine setting.
Your family and friends will enjoy watching boats of every description pass by.
This expansive property is the ultimate getaway.
The John Calvin Stevens Maine cottage is conveniently located just minutes from Portland with its
international jetport and two hours from Boston. Greater Portland
enjoys a dynamic arts community, including the Portland Museum of Art, the
Portland Symphony Orchestra, ballet, fine dining, theater and other cultural
and business amenities.
Rates: $12,000/week.
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Close to everything - Overlooking the entrance to the Portland ship
channel, Stone Gables offers the finest location in Southern Maine. This
beautiful home is located less than four miles from Portland's vibrant "Old Port"
district with its many restaurants and shops. As for convenience, it is less
than eight miles to the Portland International Jetport and there is easy access to
all of the amenities Maine has to offer.
The commanding views from atop a 30 foot natural granite ledge are second to
none. With the Casco Bay Islands off to the North, Ram Island Ledge Lighthouse
to the East, and Casino Beach and the open Atlantic to the South, the scenery
always inspires the senses. Ocean views abound from almost every room in the
house.
Stone Gables is a prominent home sited on Shore Road in Cape Elizabeth. It was
originally built in the "Roaring 20's" by one of Maine's leading businessmen.
With its grand dining and living areas, Stone Gables is designed for the enjoyment
of it guests. With just under 8,000 square feet of living space, there is
plenty of room to enjoy the luxury lifestyle of the Maine coast. The first
floor consists of a large living room, dining room, kitchen area, family room
and breakfast/lunch area. Additionally, there are two half bathrooms and a cozy
wood paneled study which is a terrific place to curl up with a book. Each of
the first floor living areas has fabulous ocean views.
The second floor consists of 7 well appointed bedrooms, 5 full baths, and a
shower/steam room. The main part of the house is comprised of 5 bedrooms,
including the master bedroom which has views to the South, East and North, a
king size bed, and bathroom en-suite. There is also a large South facing
bedroom with a queen size bed and private bath, a smaller North facing bedroom
with a full size bed, and 2 additional bedrooms, each with a twin bed, which
share a bathroom.
Additionally, there is a 2 bedroom suite consisting of a large bedroom with 2
twin beds, a custom built bunk bedroom with 4 kid/teen sized bunks, and a
shared full bath. Every bedroom on the second floor, with the exception of the
bunk room, has ocean views.
There is a terrific and spacious play room on the third floor. The amenities
include a billiard table, ping pong table, air hockey table, and a TV/Video
Game area.
On the large patio overlooking Maiden Cove and the Casino Beach, there is a
fabulous oversized custom-built hot tub. A stone sitting area on the Eastern
lawn is the perfect gathering place.
The many details and amenities are seemingly endless. With just under 8,000
square feet of beautiful living space, there is plenty of room to enjoy a
luxurious lifestyle on the Maine coast, and treasure the long summer days on
the Atlantic Ocean.
Rates: $11,000/week.
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It's the goal of every home seller: a quick sale at the best possible
price. Millions achieve it, even in this soft economy and even in areas
with bloated inventory. In a buyer's market you have to think like one.
Here are six strategies to close the deal.
Neutralize Your Taste
Take a clue from professional home stagers and neutralize your
style. "You have to take the seller's personality out of the house and
consider the taste of the buying demographic," says Philadelphia home
stager Starr Osborne, owner of Tailored Transitions and author of Home
Staging that Works (AMACOM, 2010). "Even if your furnishings and
collections are fabulous, highly personal items distract from what
you're selling." Think of it as the opposite of decorating, which
personalizes the home to the owner's preferences and sensibilities.
Staging ensures a home appeals to the broadest possible buying
demographic.
Don't Get Emotional
Emotional investments don't translate into good ROIs. Osborne is
working with a couple who just listed their gentleman's farmhouse for
$3.2 million. The stumbling block? The sellers' dogged attachment to the
Christmas trees they've planted during their 40 years there. Some are
now towering 70-footers. "The couple is emotionally attached to those
Christmas trees, but they're blocking half the property," Osborne says.
In this case, the property, 13 acres of rolling hills in Pennsylvania's
fox-hunting country, is one of the estate's prime selling points.
Cutting down the trees would better showcase the gorgeous grounds. These
kinds of scenarios are especially common in the upper reaches of the
real estate market. Owners have lived in their homes longer than
average, often raising their families there, and are reluctant to purge
the memories - even knowing they'll be moving on. "On the higher end,
you've been defined by the parties you've given, the holidays you've
spent together and the lifestyle you've lived," Osborne says. "You have
to disengage, and be willing to say goodbye to that when you sell your
home."
Upgrade Your Green Scene
It's difficult to overestimate the importance of curb appeal, and
fine landscape architecture is at the heart of it. Upgrading the grounds
ensures a strong return, sometimes as much or more than a new kitchen
or bath. Think about the gardens of Mediterranean villas, prized for
their lushness and sense of permanence. Fountains, retaining walls and
weathered stones have the patina prospective buyers covet. Rich Taylor
of Gulf to Bay Sotheby's International Realty in Boca Grande, Fla., says
"re-landscaping properties in the high-end market is one of the most
important things you can do." It's about the buyer's first glance and
making sure it's a double take. "The return is so much greater once it's
been landscaped. Buyers are willing to walk in and pay-plus," Taylor
says.
Make It Move-In
If you're selling a vacation home, do the work for the buyer.
"Remodel and update. It's a big deal," says Taylor. "For people looking
at second homes, their time is valuable." Most don't want to spend weeks
and months managing home renovation projects from a distance and will
pay a premium for a well-appointed, move-in condition home. Taylor's
territory of Boca Grande, an "Old Florida" community on a barrier island
on the southwest coast, is where second, third and even fourth
homeowners come to decompress. "The last thing most vacation home buyers
want is to walk through a property and see all the work that needs to
be done," he says.
Know Your Buyer
Every buyer is different; each one has his own motivations. It's
crucial to understand who they are, what they want and then deliver.
Ross McCredie of Sotheby's International Realty Canada in Vancouver
works with buyers from around the globe. For the most part, Americans
buy for the lifestyle, he says. "They want to know about the
neighborhood and all the other incidentals that relate to quality of
life." By contrast, mainland Chinese, who are fueling the western Canada
real estate market involving properties $5 million and up, "want hard
and fast numbers. They're interested in maximizing the density of space.
If they can buy a property where they can add additional square footage
to the structure, it represents a significant value for the Asian
buyer. We try to understand who we're talking to and what would be of
most interest. Once we determine what is most important, we give them
that information as quickly as possible."
In many cases, McCredie says, less is more. "In the high end
market, you're not dealing with first-time home buyers. You don't need
to tell them a home has a magnificent view, for instance. You give them
great photos and let them get their own sense of the property." He says
too many sellers fall into the trap of saying too much or positioning
the home in ways that are less appealing, especially to a international
buyer.
Room to Grow
No matter how many square feet, spare rooms or separate wings a
home has, it can still feel cluttered and confined. Squeezing items into
closets or packing them away in cartons in the basement is a poor fix.
Prospective buyers want room to move and storage space to spare. Remove
table extensions and extra chairs to give rooms the appearance of more
space. Clear counters of small appliances for a streamlined feel. Empty
pantries of little-used items so buyers won't wonder about running out
of cabinet space. Pare down overstuffed closets. But don't just move
items to the garage, attic or basement. These rooms are important
selling points. Pack items up and move them offsite, even if you have to
temporarily rent a storage unit.
No clutter, no projects, no tired memories. The way to a quick
sale is to sell the dream of a better, effortless and happier life.
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