Summer Real Estate Report
In the last few weeks I have read press releases and articles written by economists, government officials, pundits, bankers, experts, trade association spokespersons, observers and reporters with varying qualifications weighing in on the state of the real estate market. They all agree that the market is either getting worse or has bottomed out, that we have seen the worst or that the worst is yet to come, that it will get better next year or the year after or maybe the year after that.
Thankfully, I've been too busy Listing and Selling property to really think much about it or I might get depressed. I'm not really in the expert class (and I bet I can find a few people here in town to testify to that) but I do make my living selling real estate here in Lincoln County, Maine and have for some time now so let me tell you what I see.
This summer, between June 1 and September 1 in Lincoln County, 142 home sales were recorded in the Multiple Listing System. In an amazing coincidence, last summer from June 1 of '06 through September 1, of '06 142 homes sales were recorded in the Multiple Listing System. This year the average sale price was $324,256. and last year the average sales price was $314,930. Doesn't sound like too bad of a market to me but then, like I said, I'm no expert.
Now to be sure there is a difference this year. There are a lot of homes on the market here. Human nature being what it is it seems like every time one of these experts speak and say how bad the market is another 10 people decide they better sell quick before it gets any worse. Back a few years ago when all the experts were saying how good the market was no one wanted to sell, they all figured it was only going to get better and they didn't want to take a chance on not getting as much as they could.
It's counter intuitive I know but don't forget we pay good money to belong to an exercise club and then drive around looking for the parking space closest to the door so we won't have to walk too far.
So right now in Lincoln County we have 843 homes on the market. Last year there was a grand total of 388 home sales recorded in the Multiple Listing System. So far this year we've recorded 257. It doesn't take an expert to figure out that more than half the homes on the market aren't going to sell this year.
Does this mean we are in a bad real estate market? Well, sort of (how's that for brilliant punditry!). Real Estate is a cyclical market, more supply on the market drives prices down, less supply drives prices up. There has been no fundamental change in our market, no employer in the area has left for India, nothing bad has happened to our environment. All of the reasons why people wanted to move here before still exist. What has happened is that more people have decided to sell. Now, if some of those people decide they really want to sell and be in the 150 or so more homes that will sell this year, then they will lower their price to attract a buyer. The rest will wait. In the end we will still sell roughly the same amount of homes this year as last.
So if you're reading this and have always dreamed of living in the best place on earth, Mid Coast Maine, Damariscotta, Newcastle and the Pemaquid peninsula, call us today and let our Brokers show you some great buying opportunities that exist among the over 800 homes that are for sale here! In the meantime, stay away from the op-ed sections of the paper and go right to the sports page. How 'bout those Red Sox...
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