Dear Friends,

Although we have yet to have any meaningful snow (other than a few flurries) in coastal Maine, winter weather seems to be here in earnest.  Short days, long chilly nights and brisk, bright, frosty mornings are what we can expect for the next several weeks.  The period between Thanksgiving and New Year's is typically a quiet time for real estate sales and general business flows.  In fact, many listed homes actually come off the market for "a long winter's nap" looking to return in the spring.  Although we are seeing the same seasonal slowing trend this year, the level of activity is exceeding our expectations.  There continues to be a healthy level of showings, new "under contract" signs and closings,  with the middle market and luxury sectors showing the most improvement versus last year. 

The statistics for the Maine real estate market as a whole are not particularly encouraging.  In fact, the most recent monthly statistical report reflected a modest (less than 1%) improvement in the median home sale price and a year over year decline of 29% in terms of unit sales volume.  Maine seems to be tracking quite closely to the National and New England regional trends in terms of both price improvement and sales volume decline.  I will again remind you that these numbers are heavily influenced by the First Time Homebuyer Tax Credit which significantly inflated home sales data until its expiration in April 2010.  We expect the 2011 year over year comparable sales data to show more normalized comparison beginning in May and June of next year.

With the bad news out of the way, there is clearly a noteworthy improvement in Maine real estate activity for properties priced $500,000 and higher.  One can see quite a different picture of the home sale market when you reduce the affects of the government incentive programs on the overall volume.  Maine's middle market and higher priced properties have been showing steady improvement with October statistics reporting a very strong increase in 3 of the 4 primary metrics.  Single family home sales volume improved 27% compared to the same period last year.  "Days on Market" which is a strong indicator of market strength, declined by 22% while the median sales price for this subset of the market increased by 3%.  An encouraging sign for future sales can be found in the "Under Contract" data for October, which shows a very healthy increase of 30%. 

Maine Single Family Home Statistics ($500,000 and higher):

 Sales Volume:                                   + 27%

 Median Sale Price:                          +3%

Days on Market:                                -22%

Under Contract:                                 +30%

As Maine's leader in luxury property, Legacy Properties Sotheby's International Realty has seen a substantial increase in sales volume as both listing agent and buyer agent.  In 2009, Legacy Properties Sotheby's International Realty ranked #1 in statewide luxury real estate sales.  We are on track to finish at #1 again in 2010.  We will be presenting a statistical review of our market activity in our next e-newsletter coming out early next year.

The improvement in Maine in the higher priced segments has largely been the experience of the Sotheby's International Realty affiliates in many parts of the country as well.  It is driven by several factors which include steady to improving stock market activity, low mortgage rates, and most importantly, buyer confidence that the worst is behind us.  Home prices, although showing modest improvements, have clearly stopped declining, fueling the confidence of buyers to move off the sidelines to purchase a property.

Although listing inventory is at a seasonal low, please keep in close contact with your Legacy Properties Sotheby's International Realty real estate professional for terrific buyer opportunities.  If a property is well priced in today's market, it will not remain on the market very long.  If you are considering listing your property for sale, we would recommend taking advantage of the next several weeks to prepare your home to be introduced to the market in early 2011.  With the significant improvement (-22%) in "Days on Market" activity for high value homes, we are encouraged by the prospects for our listing clients.

Wishing you all a safe and healthy holiday season,