Fed Lowers Interest Rate, Again

    As expected the Federal Reserve Bank today lowered their benchmark interest rate by a quarter point to 4.50 percent.   As they did last month the Fed issued a statement saying in part that the goal of this rate cut was to "...promote moderate growth over time."

    Many desperate sellers have looked towards Fed rate cuts as the answer to their problems and it is true that the lower the interest rates the more a borrower can afford to borrow.  If they choose to.

   However before the market can be brought back into balance, the current huge glut in inventory will have to be worked through.  Nationwide sales of existing homes have dropped 30 percent since the market peaked in 2005 and the supply of unsold homes is at its highest level in 19 years.  Locally, here in mid coast Maine it is estimated that we have 3 years worth of inventory on the market.  This will act as a discounting mechanism on the market and in fact that is already being seen.  Most of the homes that have sold this year have gone for prices 10% to 20% lower than they would have in 2005.

   There is cause for optimism though.  This morning the Commerce Department reported that the nations Gross Domestic Product expanded at a very healthy 3.9% in the third quarter.  Consumer spending rose 3% and the unemployment rate has held steady at a low 4.7%.

   Savvy investors will find good deals in todays market.  A few years from now some people will be telling stories about what a low price they could have bought a particular property for in '07-'08. Others will be talking about the profit they made on the property they bought in '07-'08.

Jim Cosgrove

Wiscasset Bypass Options

    The Maine Department of Transportation has released it's long awaited Draft Environmental Impact Statement which is part of the Wiscasset Route 1 Corridor Study.  This statement outlines 5 proposed routes for a bypass of Route 1 around the village of Wiscasset.  Anyone who has ever visited the mid coast area in July or August knows that traffic going through the village can back up for miles in either direction.  Many locals go to great lengths to avoid heading south of Edgecomb during the summer months or if they do, use circuitous routes that can take almost as long but are less frustrating than sitting in traffic.

   The five different options range in estimated cost from $68.4 million to $79. million.  That's in todays dollars but Dale Doughty, acting director of MDOT's Bureau of Planning predicts it could take another decade before construction of a bypass could begin.

   One of the options would require the taking by eminent domain of 33 homes and 15 businesses. Others would take less but all would take some. It's hard to imagine spending the next 10 years waiting for that sword to fall.  That's on top of spending the last 10 years wondering if you were on one of the proposed routes.  Reportedly the property owners so concerned have been notified by the state.

   There is also a "no build" option in the study which would only cost $1 million and consist of improvements to roads and intersections.  Some have offered the suggestion that getting rid of the seasonal, "Reds Eats" would solve the problem since most of the traffic slow down is caused by folks crossing the road to get back and forth from Reds.  This has little chance of happening because Reds is probably more popular with the tourists than the traffic is unpopular. I don't think I've ever met a local person who has ever eaten at Reds.  Not twice anyway.

   Public meetings will be held in Boothbay Harbor, Wiscasset, Edgecomb, Alna and Westport and after that the State will do darn well what they please.  See their website for more information including times and places.

Jim Cosgrove

Real Estate Economics

    Today's lesson is in real estate economics.  A basic premise of real estate economics is Buy low, Sell high.  This is a simplified way of saying that the smart real estate investor will buy when the market is low and prices are depressed.  The smart real estate investor will set an objective and sell when prices reach the point where the objective can be reached.  The smart investor will not wait until after the market has peaked in an effort not to miss that peak.  The really smart investor will not try to sell at peak prices 2 years after that peak has passed. 

   I know what some of you are saying to yourselves, "but I'm not an investor, I'm a homeowner." Sorry, doesn't matter, these are Universal Economic Laws and they don't care, that's just the way they work.  For the rest of you, those that are investors (ultimately every homeowner is an investor), let's look at several pieces of information that are in the news this week.  First are a pair of press releases, one from the National Association of Realtors and one from the Maine Association of Realtors.  NAR reports that nationwide home sales are down 19.8% from this same period in 2006.  They also tell us that the national median sales price is down 4.9%.  MAR reports that sales in Maine dropped 16% and that prices here in Lincoln County have dropped by 8.08%.  In other words the market is low.

    The second piece of news is a quote from former Fed Chairman Alan Greenspan.  Speaking at the Midwest ACG Capital Connection conference on Tuesday, Mr. Greenspan expressed optimism that the nation will avoid a recession but that "...the housing thing..." is going to be a major issue over "the next four, five, six months...". In other words the economy is OK but housing is low.

   Continuing our lesson, the market right now is low.  The economy is OK, there are no major fundamental problems, there is just a slow housing sector. Now is the time for the smart investor to buy.  Just as the smart investor doesn't wait for the absolute peak to take his money off the table, the smart investor will not wait for the absolute trough to jump into the market.  That's how you miss peaks and troughs. 

   Now is the time to buy.  There are bargains to be had.  For the investor or for that person who has been waiting to buy, there is a wide variety of properties available now at prices not seen in the last few years. Saltwater, freshwater, in-town and country.  Call one of our brokers today and let them show you how far your money will go. 

   For those people who have to sell because of considerations that outweigh economics, it is possible to sell.  Newcastle Square Realty has sold almost as many homes this year as last.  The difference is that there is more competition so as in any case where competition is strong one must put their best foot forward and have reasonable expectations.  In other words, stage your house well and price it properly.  Call one of our brokers today and discuss your options and where your property stands in todays market.

Jim Cosgrove   

Almost Heaven, Maine Autumn

    Now really, where would you rather be today?  North East Ohio or North East New England? 

   For the sportsman or woman this time of year is just about heaven with cool nights and warm sunny days, the ducks are flying and the deer are moving about in the woods.  The golf courses are open and uncrowded and for those that didn't rush to get their boats out of the water the scenery is just beautiful.

   For the sports fan, New England is the center of the universe with the Red Sox heading to the World Series, the Patriots a perfect 7-0 and Boston College ranked #2 in the nation.

   As if that's not enough reason to live here, prices are as low as we've seen in a long time and there are plenty of great properties to choose from.  Call now, brokers are standing by!

 

Jim Cosgrove

What Real Estate Buyers Really Want

    "We don't want a cape and we want to live close to town."

   This was the first thing clients of mine said when I asked them what they were looking for.  So, I showed them everything in their price range that was close to town except capes.

   On their second visit they walked into the office and asked about one of the houses in Newcastle Square Realty's window,  "What about that cape in the window?"  I said "It's a cape and it's eight miles from town."

   Then I remembered further desires expressed by these clients revealed during our earlier search. They wanted a space for an artists studio and a downstairs office. They had also said they had wanted a house that is "...light and airy."  The house in the window filled all of these criteria so I quickly said, "Let's go see it."

   They loved it and bought this cape that wasn't near town.

   So, what do real estate buyers really want?  They want a home that "speaks" to them and my job is to help my client find it. I am part time tour guide, part time matchmaker and full time broker.  Every client is unique and what clients want is my expertise in both real estate and our area and patience while I help them work through all the many facets of finding a new home.

   Right now I am working with clients who have no idea what they want.  They told me that.  All they know is that they want to move to this incredibly beautiful area and they want to explore their different options.

   So, we have been to Jefferson and Nobleboro looking for lakeside cabins, Newcastle and Damariscotta for riverfront year round homes, Pemaquid Point and South Bristol for oceanfront properties.

   What do they really want?

   I don't know yet but we're having fun figuring it out.

Tracy Babcock

Autumn in Maine

    Our glorious Sugar Maples are rapidly changing color and the local landscape has been transformed from the lush green of summer to the reds and oranges of fall. Visitors are enjoying the change in the season while sampling all sorts of activities, including our own Damariscotta Oyster Festival and the very funny Annual Pumpkin Regatta (see below). There are many harvest celebrations occurring all over the State, including antique shows and auctions and wonderful Agricultural Fairs.  This is a great time to visit Maine (although you'll miss the black flies).

   The slower pace of autumn allows us all to reflect back on this past vacation season.  We often ask our guests "what was your favorite thing?" but this year we asked our renters to cast actual ballots on the Best of 2007. Here is a brief summary of those votes:

The Pemaquid Point Lighthouse was voted as having The Best Views; it was also voted as The Best Picnic Spot and The Most Romantic Spot.  The Lighthouse tied with Pemaquid Beach as being The Best Place to Spend the Day.

   The Anchor Inn took the most votes in the category of Best Restaurant; just barely beating out Shaw's Fish and Lobster Wharf, another highly mentioned dining spot. The Anchor Inn tied Salt Bay Cafe for Best Chowder. They also tied with Moody's Dinner for Best Kids Menu.

   Red's Eats in Wiscasset and Shaw's Lobster Wharf tied for Best Lobster Roll. Another closely contested race was in the category of The Best Lobster Dinner with Shaw's Lobster Wharf just barely beating out the dueling lobster pounds in round Pond: Muscongus Bay Lobster and Round Pond Lobster.

   Shoppers clearly preferred the Town of Damariscotta to the competitors, Boothbay Harbor and Freeport and gave it the top rating for Best Shopping. Reny's Department Store was the clear favorite in shopping spots - beating out the much more famous LL Bean by a wide margin!

   Honorable Mention goes to King Eiders Pub, The Damariscotta River Grill and The Cupboard Cafe all of which kept showing up on ballots under various categories. Round Top Ice Cream received a number of mentions (when on vacation, why can't an ice cream parlor count as a restaurant?). The Pemaquid Fisherman's Co-Op received votes for their view as well as their lobsters.  Kayaking was a popular way to spend the day and Monhegan Island Trips and the Maine Botanical Gardens received a great number of votes in the My Personal Best category.

      If you didn't get a chance to vote, comment here and let us know what you think. If you missed some of these outstanding spots you can start now to plan your visit for next season.  We are currently updating our rental listings for next season and would love to help you plan your next visit to Mid Coast Maine and the Pemaquid area!

Anita Palsgrove, Rental Manager

Newcastle Square Vacation Rentals

Damariscotta River Pumpkin Races

   Now admit it, when you first saw the phrase " Pumpkin Race" you didn't imagine that it meant grown men in hollowed out Atlantic Giant pumpkins?  Well, the First Annual Pumpkin Regatta is over and nobody drowned! Last year was the first time these craft took to the water in front of an audience but this year drew quite a crowd.

   Bill Green of WCSH Channel 6 TV (seen above) was a scratch from the race because he capsized, proving that the folks that race these giant gourds aren't just pretty faces but are skilled sea persons in the great Maine tradition.

   In between showings today, Newcastle Squares' Tom Field managed to get these pictures.  Stand by for complete race results from The Lincoln County News.

Help for the Second Home Owner

   Another in our occasional series of guest blogs.  Today we hear from a new company offering a service that in the past has been hard to find for second home owners here in the midcoast of Maine.

   Having a weekend getaway or second home here in the the midcoast area can be so much fun!  But having a vacation home can also add to your everyday stresses.  That's why we have created HomeCheckers Midcoast LLC; a company dedicated to managing and caring for properties throughout Lincoln County.

   Have you ever arrived at your vacation home only to discover a myriad of things that need to be done before you can begin to enjoy your stay?  Imagine if you had people checking these things regularly while you are away from your home in Maine, so that you can enjoy your time while you are here.  Remember last April when the area was hit by a Nor'easter storm?  Electricity was out, wires and trees were down, debris was scattered everywhere and even some driveways were washed out.  Wouldn't it have been nice to receive a phone call or an e-mail with digital pictures of your home from someone who has thoroughly checked your property?  In addition, imagine not having to make the calls to arrange for necessary work to be done.  Picture instead arriving in Maine and the trees have already been cut and cleared, electricity restored, all systems working and you only had to make one phone call!  This is exactly what will happen when you work with Ann and Dirk Poole of Homecheckers Midcoast LLC.  They will create an individualized plan to fit your needs and the particular needs of your property here in the Midcoast.

    Ann and Dirk Poole live in Edgecomb with their two daughters and have been successfully running a small business in Lincoln County since 1985. Their business contacts and knowledge of area contractors is extensive.  Whether it be finding the right carpenter or plumber, getting a new dock put in or even helping to find the best place to buy lobsters near you, the Poole's can help.  They can ensure that the people working at your property provide you with honest and quality services and that the job is done and your home ready for you when you are ready for it.

   Call Ann and Dirk today at 207-563-8868 or send an email to HomeCheckers to arrange a personal consultation at your convenience.  Let HomeCheckers open the door to your peace of mind!

Pemaquid Oyster Festival a Huge Success

   What a beautiful day to eat oysters on the river!  The Pemaquid Oyster Festival was a resounding success and broke all of the previous records for money raised for the Edward A. Myers Conservation Fund as well as the number of oysters shucked and consumed.  Somewhere near 10,000 oysters made the ultimate sacrifice for this fund raiser to promote aquaculture and the working waterfront.

   This festival had it all.  Music, great food and fine liquid refreshments.  And what a great bunch of volunteers.  I wish I had time to get a picture of all of them but here is a sampling of some of the shucker's as they opened and served the best tasting oysters in the world, Damariscotta River oysters!

 

Tom Field