Time to Buy!

    Interesting real estate article in this weekends Boston Sunday Globe. The article begins with the story of a home buyer who gets a great deal, buying a home for $81,000 less than asking price because he's such "...a bulldog of a buyer."  He digs up information on comparable sales, he keeps spreadsheets, he has a masters in business administration and above all he's disciplined.  He "...was a stone cold hunter."

   Of course it also took him 3 years to buy his house and he used the services of an experienced Buyers Broker.  Since the market changed considerably over the last three years that might have had something to do with getting the house below asking price but mentioning that wouldn't have made the story as interesting.

   The writer goes on to redeem himself however by doing some actual research. He quotes an economics professor from Wellesley College who specializes in real estate and who concludes that the housing market (in Massachusetts) is in "that flat period ...where prices don't plummet. They hold on." A Buyers Broker suggests that now is the time to buy because by spring the best deals may be gone.

   While I generally discount most of what is said about real estate in the mainstream media I do think that it is a good sign that they have moved off talking about "bubble" bursting and are now talking at least a little bit more realistically.   The ski areas here in God's Country have known for a long time time that it doesn't matter how much snow they have on their mountain, the skiers from out of state won't come unless there's snow on the ground in Boston.  In much the same vein if the real estate market is flat to our south and the average buyer has to sell his home there before he can buy here it doesn't matter that there are wonderful properties at great prices to be had here.

   However, for those Buyers who are in a position to purchase now, there are terrific opportunities.  Call one of our Brokers today and let them show you how to make money in this market.  But, you better hurry, the story seems to be getting out!

Jim Cosgrove

Investing IRA funds in Real Estate

    Real Estate investing opens up a wide range of opportunities for individuals who are knowledgeable about real estate investing or who work with knowledgeable advisor's, sponsors or brokers. Some of the most significant advantages of real estate as an investment include:

   Providing a hedge against the cyclical changes in the stock market, economy and government-based investment.

   Real Estate inherently maintains at least some minimal value in a down market where stocks can lose their entire value under disastrous conditions.

   Real Estate is not subject to corporate and accounting scandals that can strip a stock of substantial value.

   We are working with IRA owners who see waterfront properties as excellent investments for their IRA portfolio because they can insulate their principal and generate better than average market returns through income production (rentals) and capital gains.  When real estate investments are not leveraged, both income and capital gains can flow back to IRA's tax-deferred or even tax-free if the IRA is a Roth IRA.

   If you'd like to learn more about this option please send me an email or give me a call.

Lee Simard

                              

"How's the Market?"

  Oh Oh, Field is linking to the 3 Stooges, I better get something up there that's serious right away.  Based on what I've seen out there in the blogoshpere, when it comes to real estate blogs there must be a rule that they have to be deadly dull because that's exactly what most of them are.  I expect any day to receive a visit from the blog police ordering us to talk more about interest rates and bursting bubbles.

   So, to keep us in the fraternity and to show a little gravitas here is our answer to that question every real estate broker gets at least once a day; "so, how's the market?"

   The market is OK. Remember now, we're in Mid Coast, Maine.  I'm not talking about Boston metro, New York, San Francisco or anywhere else.  The Mid Coast, Maine market is OK.  Not great, nowhere near what it was from say, summer of '03 through about late summer of '05.  But there was never a bubble here, we didn't see a lot of buying on speculation.  We had a strong market with lots of buyers as befits an area so desirable to live in.  Every reason why people wanted to move here last year or the year before is still valid. No major employer has left the area, nothing is really depressing our market with the possible exception that there has been some effect from rising interest rates.  More on that in a bit.

   What has changed is that there may have been some of those negative market factors in areas from which our buyers come.  Fewer of those buyers can sell their homes or those that do realize a lower gain.  That translates into fewer buyers for us.  Fewer buyers equal lower prices.  But, there are still plenty of buyers. Since most of those buyers were just sellers, they have adjusted to the new market.  Based on data from sales this year, prices in our area are running about 10% to 20% lower than where they were 18 months ago. For those sellers that have adjusted to that reality a successful outcome is the result.

   Now a word about interest rates. The Federal Reserve raised interest rates to stave off inflation. They probably could have left things alone, the spike in oil prices took care of inflation. But they can't help themselves, they're regulators, they need to regulate.  At present the consumer price index inflation rate has declined to 2.1%. and the personal consumption expenditure (PCE) core price index has declined to 2.3%. Combine this with a slowdown in the housing market and the Feds should be looking to at least slightly lower rates in the near future.  This should be all the impetus needed to get markets to our south moving a little faster. Albeit at an adjusted price level.

   So, to summarize, this is a good time to sell, as long as you didn't buy in the last 2 or 3 years. If you bought before then and assuming you were prudent at that time, you'll do OK now.  Don't compare your home to what your neighbors home sold for 2 years ago, even though yours is nicer. If you're a buyer, this is a great time to buy, there's plenty of inventory from which to choose. The buyers that get frustrated are those that expect deeper discounts than what the market has adjusted to.

   If you're thinking of buying or selling in the Mid Coast, please feel free to call any of our brokers or myself and we'll be glad to discuss this with you at length.

   Now, to be really serious, Field and I have a disagreement. He's trying to tell me that Curly was the most important of the Stooges.  Of course he's wrong, Moe was the key guy. Without Moe, the whole thing doesn't work. Curly was replaced, Moe never was.  What do you think?

Jim Cosgrove

Uplifted in Damariscotta Mills

    When I'm around any type of heavy construction equipment I turn into a 10 year old again. I really can't help it but I become mesmerized and feel the need to watch everything that's going on.  I do manage to keep myself from making little engine noises though.

   Imagine my delight when a bunch of dump trucks and backhoes and front end loaders showed up at my neighbors to dig a hole for a new foundation under the existing house!  This has been going on for the last 2 weeks now and I'm still amazed that a house can be lifted high enough in the air that they are able to get a small front end loader into the basement.  This has become a long stop on my morning dog walk.

    From the pictures here, you can see what this home looked like last February and now with the front end loader in the basement.  There are huge slabs of granite that must weigh well over 500 lbs. and you have to wonder how the original construction crew, without the benefit of gas powered equipment, moved them. PBI Excavation  is doing the work and these guys really know what they're doing as witnessed by their being able to maneuver a 50' steel beam in such a small area. If I were in charge I'm sure I would have taken out the homes on either side, like the 3 Stooges with a ladder.

   I listed this house for sale last spring and as soon as she saw it, Kathleen Shattuck brought  a buyer she had been working with for a while. She knew their wants and needs and was immediately able to make the match, to the benefit of both the buyer and seller.

   If you're interested in buying or selling in Damariscotta Mills, please get in touch with me and I'll keep you updated on properties as they become available.  The Mills is a small neighborhood at the head of Damariscotta Lake just a short distance from the Twin Villages.  Half of the neighborhood is in Newcastle and half in Nobleboro so the only actual connection to Damariscotta is to the lake.  At one time logs were floated down the lake to mills powered by the water falls there where the lake flows into The Great Salt Bay.

I'll update everyone on this project as it goes along.  They should be pouring cement soon!

Tom Field

Moon Over Pemaquid

   We've owned our home at Pemaquid Point since 1978 and I can't count the number of fantastic sunsets and incredible moon rises we have enjoyed. Nearly 30 years later our awe at the beauty is as great as ever. Unfortunately, the photo above doesn't come close to capturing the moment. I tried to time this shot with the light on the Pemaquid Point Lighthouse and you can just make it out underneath the moon.  You can click on this photo to make it bigger on your screen.

Lee Simard

The Early Bird Gets ...The Discount!

    It is 5:30 AM on a Saturday morning in Damariscotta, it is a few degrees below freezing and the streets are full of crazy people with shopping bags. What is wrong with these folks?  I have to admit that at 5:30 this morning I opened one eye, glanced at the clock, rolled over and went back to sleep so my information is second hand and these pictures weren't taken until after 9 when the crowd had thinned out. But from what I hear there was hardly a parking spot to be found and people were lined up and waiting to get into stores in Damariscotta and Newcastle.

   I'm sorry, but you couldn't discount a new couch or television set enough for me to get into town at 5:30 in the morning. It's November people, it's dark and it's cold at that hour.

   OK it is a festive atmosphere, there are discounts of 50% or more in some stores, you're friends and neighbors are fund raising for the Damariscotta River Association or the Damariscotta-Newcastle Rotary Club or a local charity, your favorite candidate for Maine House or Senate is handing out hot coffee and scones, but is this really necessary? Isn't 5:30 a little uncivilized? Couldn't we do this at another time?   

   I'm proposing we do this at 9 PM on a Saturday night. Then, instead of coffee and donuts it could be Irish Coffee and...whatever goes with Irish Coffee. Or a Sheepscot Ale and whatever you want because everything goes with a Sheepscot Ale.

   If we can make this happen I will personally talk to the powers that be here at Newcastle Square Realty and see if we can't offer discounts on our inventory! How about 10% off on all waterfront property! 20% for intown. Buy 3 acres we throw in another acre. I don't know why nobody else ever thought of this. Who do I talk to?

Tom Field