They Are Giving Money Away

   Mortgage rates fell this week to the lowest levels on record dating back to 1971.  Nationally the average rate for a 30 year fixed rate mortgage sank to 4.69 percent, according to Freddie Mac. Rates for 15 and 5 year mortgages also hit lows.

   The instability in Europe is actually proving to be a boon for U.S. borrowers as nervous investors shift their money into Treasury bonds. Given that property prices have stabilized, at least in Mid Coast Maine, and there is an abundance of inventory for consumers to choose from, it would seem to be an optimal time for anyone looking for a safe investment to consider real estate. 

   If you would like to know more about the possibilities of an investment property or if you have decided that these low rates make it possible for you to own and begin enjoying your retirement home now, make a call or send an email to one of our experienced, knowledgeable brokers.  This confluence of events, low rates, low prices and high inventory won't last forever.

Jim Cosgrove 

How NOT to Sell a House

   Take one little tiny For Sale sign, mark an arrow on it and tack it to a tree pointing down the long dirt road towards your house.  Wait.

   This particular sign has been up for over a year now. No Multiple Listing Service presence, no web presence, no advertising.

   If you were in the market to buy a home would you drive down that half mile or more of dirt road, knock on the door and ask to see this home? Ask the price? Ask how much land came with it? Apparently, neither would anyone else.

   Well, I just gave them more advertising than they've given themselves.  Too bad they never thought to put their phone number on the sign!
 

Saturday Solds

   Another in a continuing semi regular series of posts designed to give the consumer a feel for what is actually selling in the mid coast Maine real estate market.

Porcupine Ridge, Bremen

   Originally listed for $189,000, reduced to $174,900 and sold for $171,900 after 81 Days on Market.

East Neck Road, Nobleboro

   Originally listed at $299,000, reduced to $199,900 and sold for $180,000 after over 600 days on the market.

Ames Road, Jefferson

  Listed at the time of sale for $274,900 this home on Damariscotta Lake sold for $250,000 after 32 days on market.

  There is considerable activity in our market place with lots of showings taking place as property in states to our south begins to sell.  However there is an abundance of inventory here in the mid coast which will continue to depress prices for the foreseeable future. In the past 2 weeks, the Maine Real Estate Information Service (MLS) records 69 new listings for Lincoln County vs. 8 closed sales.

   This is a great time to be a First Time Homebuyer, with low interest rates, lots of inventory from which to choose and still time to take advantage of the Federal tax credit. It may be an even better time to be a real estate investor.
 
 
 

Mid Coast Maine Real Estate Facts and Figures

    Everyone I meet has an opinion about the local mid coast Maine real estate market. They are also very glad, indeed, eager to share that opinion with me. That's fine, after all everyone is entitled to their opinion. I just wish that they would try to look at actual facts before they they form and promulgate their opinions. Regurgitating what one hears on a cable or radio talk show does not, in my book count as an informed opinion. We should all remember that in this day and age of the internet, satellite radio and cable tv, the content on those venues is more often that not simply filler.  As opposed to the informed fact based information available here on the mainecoastproperties blog of course.

   This morning I was treated to not one but two opinions.  One fellow stopped me on the street to tell me that he knew, because apparently he has inside information, he knew that the real estate market had a lot further to fall. As far as I know he does not plan to purchase real estate any time soon but I think that, just in case he wanted me to know that I'd better not be trying to trick him into buying any real estate unless the market was at rock bottom.  

   The second opinion I heard was from a potential client, calling from out of state. He has never been here, knows no one who lives here, thinks he might like to live here, but is worried that he has missed the bottom of the market and now might have to pay more that he might have had to. In neither case was I, the long time Main Street real estate professional, asked my opinion. Do these people go to the Doctor and tell him what their disease is?

   If I had been asked here is what I could have told them, based on actual facts. At the height of the most recent real estate bull market, in 2006, here in Lincoln County, Maine, 390 homes were sold by those real estate agencies participating in our Multiple Listing System. In 2007 that number dropped to 370 and by 2008 had dropped further to 285. It held steady at 285 in 2009.  In January of 2008 there were slightly less than 900 homes for sale in the county and in January just past there were just under 700 homes listed for sale.

   Now forming an opinion based on the fact that homes sales held steady for two years and inventory levels began to recede I think it is fair to say that the market has reached bottom. What is the date of the exact bottom? Was it September of '09? December? Will it be March of '10?  We will all be able to say with great certainty in about 3 years when we have the actual figures. The factsare that prices are lower now than they were at any time in the last 5 years, they have for the most part stopped going down, and interest rates are at historically low levels.  Add in the various government incentives to buy such as First Time Homebuyer Credits, Move Up Homebuyer Credits, Energy Improvement Loans and more and now is a great time to buy regardless of whether or not it is the exact statistical bottom of the market.

   Now, there will be properties that sell below their current asking price. A healthy and "in balance" real estate market will not occur until inventory levels fall further. But as new properties enter the market they are priced to reflect current market conditions and they sell in less time than those properties that are still clinging to 2006 price levels. In fact, for homes that actual sell (as opposed to being for sale) the median days on market has only risen by 14 days since 2006. From 103 median days on market in that year to 117 median days on market in 2009.

   So while my friend who is waiting for the ultimate bottom of the market to make his fantasy purchase just may find a lower price, I'm not sure what his choices will be. Those folks who wish to purchase a home to actually live in and enjoy may want to make their choice from among the more salable homes coming on the market. My potential client, coming from out of state will find plenty of inventory to choose from right now and as the spring selling season approaches more homes coming on the market that are priced to sell.

   If you or anyone you know is thinking of making a real estate purchase on Maine's mid coast, I strongly urge them to call an experienced, successful real estate professional to discuss actual facts and figures and how those facts and figures pertain to their own situation. You don't get your medical information from talk radio or cable tv, do you?

Jim Cosgrove

How to Buy Foreclosures

Thanks and a tip of the cap to Rita Yarnold at Bay Realty in Portland, Maine.

Big Ben Speaks

    What a difference a year makes.  Speaking at an annual conference of a who's who in the financial world, Fed Chairman Ben Bernanke said what investors wanted to hear, that the economy is on the verge of recovery.  The Dow Industrials responded by shooting up 155 points Friday to close above 9,500 for the first time since last November.  At the same conference last summer, speaking just before the disastrous months of September and October when AIG had to be bailed out along with Fannie Mae and Freddie Mac and Lehman Bros was allowed to fail, the Fed Chair was decidedly more somber.

   Less than 2 weeks ago a Federal Reserve report had declared that the economy was 'leveling out" so Bernanke's remarks, when parsed by the tea readers who watch the Fed are considered even more up beat. The Chairman did say that "...difficult challenges still lie ahead."  But he indicated that the Fed would continue to take small steps toward pulling back some emergency programs intended to strengthen the financial system and the economy.

   A bigger than expected jump in home sales nationally also helped to push stocks higher and send bonds lower. Existing home sales remain lower than last year but rose 7.2 percent from June, a higher than expected rise. It was the fourth straight monthly increase in home sales although it does come as home prices continue to decline.

   Faithful readers of this site know that I have consistently said that when public officials and the media start talking about the recovery, just as with the decline, it will have already been underway. We have a long way to go folks, but the tide has turned.

Jim Cosgrove

Mid Coast Maine Real Estate Report

    We're actually at the half way point of the summer, even though all of the June rain makes it seem like summer has just begun. But it is, finally, warm and a little bit muggy, as much as it gets here on the coast of Maine, so it must be time to review and report on the state of the real estate market in the greater Damariscotta Pemaquid area.

   I'm sure you are all aware of yesterdays Commerce Dept. report that showed construction of new homes rose in June to the highest level in 7 months. It was better than the pace expected by economists and the second straight monthly increase.  For our purposes we're more interested in the sale of existing homes but I think this report speaks to the overall recovery, or start of the recovery of the real estate market. Banks are once again lending to builders and first time home buyers are scrambling to take advantage of the tax credit in the stimulus bill.

    Here in the mid coast we have some activity because of the tax credit but we are primarily a market of second homes and a retirement destination and it is those buyers who we are starting to see again as they are able to move their homes in States to our south. Now a reality of this market is that they sold their homes for less than they might have 2 or 3 years ago.  So they have less to spend on a home here and offers made to sellers reflect that.  But, the difference from this time last year is that they have been able to sell and they are here looking to buy.

    When they get here they are finding a fairly good supply of homes to choose from although that is beginning to change and many of the better properties have already sold. Buyers are also finding that the local banks in our area are eager to work with them.  All in all it is a good time to be in the market for a home on the Pemaquid peninsula.

   For a complete look at all of the homes available be sure and look at our searchable data base located on our website.  Here you will find homes listed by every agency that does business in Lincoln County, Maine. 

Jim Cosgrove

Saturday Solds

   Okay, the banks have passed their stress tests, Chrysler and GM are going to be allowed to go bankrupt and the world is still turning and the swine flu is turning out to be just another bad cold. So how is the real estate market in mid coast Maine you ask?  Well, let me tell you.  It is improving.  Prices are down and some people are getting some pretty good buys.  Here's a few properties that have sold recently:

 

   This home above, with 18 acres of land, beautifully sited on Boyd Pond in Bristol, sold for $550,000 after 129 days on the market.

 

   This home in Jefferson, with convenient boating access to Damariscotta Lake sold for $251,000 after 552 days on the market.

 

   This 2004 home with many custom features is located on 7 acres in the rural community of Somerville and sold for $235,000 after only 42 days on the market.

 

   With beautiful views of the open ocean from Ocean Point in Boothbay, this cottage sold mostly furnished for $440,000 as soon as it came on the market.

If you've been considering purchasing property in Maine's beautiful mid coast, isn't it time you called your broker?

Jim Cosgrove

New Listing in Round Pond, Maine

     Tracy and I were in Round Pond a few days ago to work up a new listing.  It was a sunny day so we didn't pay much attention to the snow piled on the sides of the road.  It's only a short drive from Damariscotta.  We went through Bristol Mills, took the Lower Round Pond Road to Route 32, then a mile north to the village. I was singing "over the hills and through the woods," inspired by snow covered fields.

   Round Pond is a picturesque Village within the Town of Bristol.  It has its own Post Office, a couple of lobster places, a restaurant, a market and the best candy store anywhere.  Church steeples dot the landscape.  During the summer fishing boats and pleasure boats are moored in the harbor and you can watch lobstermen unloading their catches at the docks.  Several artists call the place "Home."

   The village gets its name from the shape of the cove it surrounds, as you can see if you follow this link and look at the map.  That page will give you the nitty-gritty statistics about Round Pond, but not the real flavor of the place.  Here are some thoughts from a former resident: A Special Place.

   Round Pond village is the scene of one of the wackiest and most popular, Fourth of July parades anywhere.  It attracts many hundreds of visitors from near and far, especially after being written up in The New York Times, which described the parade as "quintessential Americana turned on its head, a cross between a charming, Rockwellian parade, a roast and a political protest. Its claim to fame is that everyone- from the tourists who invade this village of 550 residents each summer looking for lobster to the current powers that be, regardless of party - gets made fun of."

   Even bigger than the NY Times piece was a blog post Tracy did right here on last summers parade!

   Getting back to the reason for our trip to Round Pond, pictured below is our new Listing, right in the heart of the village.  Visit our Newcastle Square Realty website for more information or see the home on Realtor.com.  You could have your own front row seat for this years parade.

 

   The village is the perfect place to spend your summers, close to many activities along the Coast of Maine.  It's an even better place to call home, your own home in Maine.

Bill Babcock 

Saturday "Solds"

   Another in an intermittent series showing properties that have sold lately here in the mid coast region of Maine.

 

   Located on Head Tide Hill Road in Alna, Maine this home was bank owned and listed at $105,000.  It sold after 12 days on the market for $118,900.

   

   Located on Eastern Avenue in Boothbay Harbor, Maine this home was also bank owned and "needed work".  It was listed for $99,000 and sold for $90,000 after 217 days on the market.

 

   Sitting up on a hill on the Bristol Road in New Harbor on the road to Pemaquid Point this home was listed for $134,900 and some lucky buyer got it for only $90,000. after 282 days on the market. Not bank owned.

 

   Beautifully sited on the Damariscotta River in Edgecomb this home sold for $822,700 and was originally listed for $949,000.  On the market 254 days.

   That's just a small sample of some of the sales made in Lincoln County in the past few weeks.  Winter is usually a very slow time for us around here and of course it's even slower this year.  But sales are being made and some buyers are getting homes at prices others will marvel at years from now. 

   The pace of inquiries and requests for showings has picked up and while we do not anticipate another year like 2005 neither do we anticipate another year like 2008.

Jim Cosgrove