Maine Real Estate Update

    Now that the April rains have stopped (a record 5 inches in Newcastle yesterday) and we await the May flowers it seems like a good time to assess where our real estate market appears to be heading here in mid coast Maine.

   The good news is that inventory levels, although still somewhat high, have dropped.  At this time last year we had over 850 homes for sale in our MLS for Lincoln County.  At present there are slightly less than 700.  I expect inventory levels to climb as they always do at this time of year but not to the levels we saw last summer.

   We have had very good activity as far as phone calls and showings go for about the last 6 or 7 weeks or since the winter really started to break.  Again this is normal as we are a seasonal market. We have had a fair number of offers being made and more encouragingly, being accepted. Buyers are always quicker to adjust to a decreasing market than Sellers but at this point everyone knows the score.

   Prices seem to have settled in at about 14% to 18% lower than they were at this time 2 years ago.   Unless inventory levels spike much higher, say over 800 homes on the market, I expect that prices won't drop further.

   Mortgage interest rates remain extremely low.  The Fed meets this week and many expect another quarter point drop in the Federal Funds rate but most bankers I talk to say that probably won't translate into lower mortgage rates.  What it may do is loosen up some of the lending practices at the bigger banks.  We have found that local banks here in town have money to lend to qualified home buyers and are quite willing to do so.  The bigger banks, based outside of our area, who advertise slightly lower rates, paradoxically seem to always find a reason to deny a loan, usually by cutting down the appraisal.  In other words, the guys that got us into this mess have no inclination to help us get out. But why talk to some voice mail system in California or Florida?  I'll be glad to walk you across the street where you can talk with Roger or Ken or up the street to talk with Patricia or Gary.  They are friendly, courteous and professional bankers who live right here and they would very much like to talk with you about doing business.

   The vaunted stimulus package starts to roll out this week. This is the politicians way of trying to convince us that they understand what is going on and can do something about it. I tend to doubt it but we'll see. (Maybe they could have just sent the money right to Exxon/Mobil and saved us the trouble of paying it at the pump). Indeed with the job market remaining strong (less than 4% unemployment among college grads) the biggest problem after the credit crunch is commodity prices, particularly oil and food.

   Summing up, it's not going to be summer of '04 again but neither is it going to be summer '07.  This is a good time to buy and not a bad time to sell.  The market appears to have levelled off. Those homes that come on the market now will for the most part be priced realistically (there's a few dreamers in every market).  All the reasons why folks wanted to live here before (pleasant small towns, low crime, good schools, good health care, etc.) remain in place.

   If you've been thinking of making a move, why not give one of our professional real estate brokers a call and see where your wants and needs fit into todays mid coast Maine real estate market.

Jim Cosgrove

Saturday "Solds"

   Another in an occasional series, where we give you a brief snapshot of the market and a sampling of those properties that have been selling in Lincoln County.  Sold prices are publicly available, days on market are gathered from the Maine Real Estate Information System.

   Editors note: Despite persistent negative media reports, not everyone has defaulted on their mortgage and homes are selling, albeit not as fast as 2 years ago.

   On the Damariscotta River at Perkins Point in Newcastle, this home was originally listed at $835,000 and sold for $800,000 after 248 days on the market.

   On Townsend Ave. in Boothbay Harbor, this home which has been used as a B&B, was originally listed for $459,000 and sold for $300,000 after 870 days on the market.

   Located at the corner of Foster Rd. and Bristol Rd. in Bristol and originally listed for $180,000, this home sold for $110,000 after 467 days on the market.

   Townhouse #3 of this condominium conversion sold for $386,000 after 518 days on the market. It was the last available unit in the project.

   Located on Damariscotta Lake in Jefferson, this home was priced at and sold for $595,000 after 4 days on the market with Newcastle Square Realty although it had been previously exposed to the market with another company.

   Beautifully sited on the Damariscotta River in Newcastle this elegant home was listed for $795,000 and sold for $750,000 after 444 days on the market.

Do Oddly Priced Homes Sell Faster?

    The Washington Post is reporting that a recent study at Cornell University has found that people will pay more for a house if the listing price does not end in several zeros.

   "It's a psychological bias," according to a professor of marketing  at Cornell's Samuel Curtis Johnson Graduate School of Management. "A bias in judgment."

   The study concluded that because people are used to precise numbers for items that don't cost much and to round numbers for large amounts, consumers generally and home buyers specifically tend to perceive that a price is smaller if the digits at the end are not zeros.

   "It does seem ridiculous," said the professor. The results were confirmed in laboratory tests with 134 graduate students and by examining real estate transactions in South Florida and Long Island, NY where most list prices had three zeros at the end.

   Now I admit my first thought was "Gee, I hope they didn't get government funding for this study", but they probably did so let's get over that and examine the results.  In a "laboratory" experiment they asked 134 graduate students who probably have no money and are not even remotely in the home market, what price they would pay in a hypothetical situation and then compared it to real transactions that actually occurred in the real world and from this they determined that a home priced for $484,700 would sell for $1,380 more than a home priced at $485,000. That's pretty definitive.

   We don't have a laboratory and we don't engage in hypothetical situations.  Here at Newcastle Square Realty all we do is sell homes. Lots of homes.  We are the leader in our market area.  We find that real buyers here in the real world who use real money to buy real homes think very carefully about their purchase. They use a professional Buyers Broker to help them gather all of the relevant data about homes that meet their needs in the community where they wish to live.  They negotiate to make their purchase at the best price and under the best terms and conditions they can get.

   Todays home buying consumer is highly sophisticated and well advised.  Todays Sellers need to be just as sophisticated and just as well advised.  The homes that sell for the highest asking price to sale price ratio, in the shortest period of time are those homes that are priced properly relative to the market and then prepared in such a manner as to make them attractive and welcoming to those sophisticated buyers.

   There are no shortcuts or magic tricks that will cause someone to give someone else more money, at least not here in the real world.  If you are a prospective Buyer or Seller of real estate and would like to be advised by a professional, highly experienced real estate broker who will use knowledge and hard work to help you achieve your objectives, please call our office and we'll be glad to work with you.  If you are a dreamer or a schemer who would like to engage in hypothetical transaction,  I'm sure there's someone somewhere doing a study who would like to talk with you. And that's my "bias in judgement".

Jim Cosgrove

Stimulus Package to Become Law

   The following was just released by the National Association of Realtors:

This afternoon President Bush will sign the Economic Stimulus package into law. Last week, Congress gave overwhelming final approval to the Economic Stimulus Package supported by NAR and REALTORS® across the country. As a result, the government will be sending payments to most American households and grant tax incentives for business investment.

The legislation includes the requested GSE and FHA limit increases strongly backed and lobbied by NAR. The increased GSE loan limits means borrowers will see immediate relief with new liquidity in the mortgage market and the nation will see an additional 300,000 home sales. The increased FHA loan limits means an additional 138,000 Americans will purchase homes, and with the needed FHA reforms means 200,000 families can refinance their homes safely and affordably.

  It sure sounds good!

Prepare Your Home To Sell

   Here in Mid Coast Maine we are truly in a very competitive Buyers market.  In order to stand out from the crowd not only does a home need to be priced competitively but it also has to look it's best.  It sometimes takes Buyers several visits to a home before they decide to actually buy it but they can often decide not to buy it in the first few seconds of their visit.  Almost every broker can tell you stories of people running out of homes because of cigarette smoke or cat litter odor and I know that early in my career I lost sales because Sellers just weren't astute enough to tidy up.  Now I give them a copy of our Market Preparation Guide and if they don't follow it I fire them!

    For those Sellers who really want to give their home a leg up on the market we recommend the use of a professional home stager.  We have seen homes completely transformed in the hands of a good home stager.  Here's an excellent video from Boston Home Staging to give you an idea of what can be accomplished:

 

   For a free copy of our Market Preparation Guide send me an email and I'll be glad to provide you with a PDF copy.

Jim Cosgrove

Fed Cuts Interest Rate (Again)

    For the second time in eight days and as expected, the Federal Reserve Bank cut short term interest rates today. This will bring the benchmark Federal funds rate to 3 percent. The Federal Open Market Committee which decides interest rates left open the possibility of further rate cuts.

   Predictably, the stock market soared and one has to wonder if that has become the main driver of rate cuts since last weeks cuts have not yet had time to filter into the mortgage market.   While eventually these most recent rate cuts will have a positive impact on mortgage interest rates, it is important to  note that the real estate market does not swing in either direction the way the stock market is capable of doing.

   Meanwhile, The New York Times, in an article on the economy Thursday, quoted Richard DeKaser, chief economist at National City Corporation as saying he was skeptical of the economy actually entering a recession.  He cited the latest labor market data showing decreasing weekly unemployment claims and the fact that business borrowers are not facing a credit squeeze similar to that faced by the housing sector.

   So, interest rates are nearing record low levels, real estate prices are down and there is plenty of inventory to choose from.  What is your definition of a good time to buy a home?

Jim Cosgrove

Stock Prices Swing, Interest Rates Decline

    The Dow Jones Industrial Average dropped by more than 400 points this morning as trading resumed on the floor of the New York Stock Exchange after the long weekend.  Reacting to an international selloff of stocks the Federal Reserve cut its benchmark interest rate by three quarters of a percentage point.

   Meanwhile, here on the Pemaquid Peninsula on the coast of Maine real estate prices are at their lowest point in recent memory.  Local banks are very interested in talking with credit worthy customers.  Those home buyers in a position to pay cash for their purchase are finding even better bargains in Maine real estate.

   All the reasons people wanted to live here are still valid.  Beautiful scenery, clean enviroment, small town living with a chance to get to know your neighbors, low crime, good schools, uncrowded golf courses. It's only going to cost more to buy into this market in the future.  So, where do you want your money ?

Jim Cosgrove

The Patriots and Maine Real Estate

    Heresy!  The undefeated New England Patriots are playing the San Diego Chargers in the AFC Championship game this Sunday. And  America's Mortgage Broker, Brian Brady from San Diego has come up with a novel reason why folks should be rooting for the Patriots to lose. 

   It seems that when an AFC team wins the Super Bowl, the real estate market goes down.  When an NFC team wins, the real estate market goes up. Hence anyone interested in the real estate market should be hoping for an NFC victory in the big game.  Since this Sunday's game is not the Superbowl but the AFC title game, I guess what Brian is saying is that it would be OK for San Diego to win because then they would lose the Super Bowl? Hmm.  If I didn't know how hard Brian works I'd say he was spending a little to much time in the sun.

   It should be a good game though.  The Chargers have some great players on both sides of the ball and feature former UMaine standout Stephen Cooper in the middle of their defense.  But these are the Patriots were talking about, maybe the greatest football team to ever walk the planet.  Some people (me) even refer to them as the Newcastle Square Realty of football. In the end Tom Brady will be too much for the surfer dudes, Patriots 38-35.

Jim Cosgrove

Maine Realtors in Alabama

    The Maine Association of Realtors has sent a delegation to Mobile, Alabama to participate in the building of a new home for Habitat for Humanity.  Follow their progress on their own blog at http://merealtor.blogspot.com/.

   Hopefully those hardy souls aren't suffering too much in the southern heat.  Today here in Maine we are enjoying  a seasonably cool day in the upper 20's with a gentle snow falling and not expected to amount to more than a foot by nightfall.

Maine Real Estate Begins to Rebound

    Early signs point to a rebounding real estate market for 2008, at least here in the Damariscotta-Pemaquid region of Maine.

   A slow market in 2007 and a glut of inventory has combined to drive down prices at the same time that the Federal Reserve Bank has been steadily lowering interest rates.  Fed Chair Ben Bernanke, speaking at a housing and economic forum in Washington D.C. on Thursday said "We stand ready to take substantive  additional action as needed to support growth and to provide adequate insurance against downside risks."  Wall Street interpreted this to mean that the Fed will cut its key interest rate by 25 to 50 basis points at the boards next meeting on Jan. 29 and the stock market jumped more than 100 points before Bernanke finished his speech.

   Here on the ground in Mid Coast Maine we have seen significant activity in the real estate market compared to past January's as it appears that savvy Buyers who understand the concept of "Buy Low...Sell High" are coming into the market as well as some folks who may have been priced out of our market the last 2 or 3 years. We have seen activity at all price points including in-town condominiums, single family homes and luxury waterfront properties.  Local banks seem eager to lend to qualified customers.

   For a referral to a friendly small town banker with money to lend or to discuss some of the attractively priced properties on the market in our area, please call and ask to speak with one of our experienced brokers.  They may all be out on showings but someone will get back to you just as soon as we can.

Jim Cosgrove   

Thank You

    The Brokers and Staff of Newcastle Square Realty would like to thank the people of mid coast Maine who chose to use our services when they bought or sold real estate in 2007.  Once again Newcastle Square Realty brokered the sale of more real estate than any other company in Lincoln County.

    Not only that but, in a very difficult environment for real estate sales we set a company record for total sales with over $53 million in closed sales and 174 units.  In the Pemaquid peninsula towns of Damariscotta, Newcastle, Bristol, South Bristol and Bremen we were involved in over half of all transactions.

   We are humbled by your faith in us and we look forward to serving your real estate needs for a long time to come.

   Thank you.

The Associates of Newcastle Square Realty

Merry Christmas from Damariscotta Maine

Good News for Maine Home Sellers

    If you've been trying to sell a home in Maine (or anywhere else in the U. S. of A.) you had to like the interview with former Fed Chairman Alan Greenspan yesterday on ABC's "This Week".

   Addressing the current housing market slump, the former central banker called for the government to apply money to the problem saying "Cash is available and we should use that in larger amounts, as is necessary, to solve the problems of the stress of this."

   Such a cash infusion would typically come through a tax break perhaps in the form of a credit for sellers who lose money.  This would also signal that the Fed is going to leave the discount window open and encourage banks to lend. While Greenspan has retired it is hard to believe he's speaking in a vacuum and that his words aren't carefully calculated to have a specific effect.

   While these may be trying times for home sellers this is probably one of the all time great buyers markets and may present the best buying opportunity of this generation.

Jim Cosgrove

Fed Cuts Interest Rate

    The Federal Reserve cut a key short term interest rate, the federal funds rate, to 4.25% today.  The central bank also cut the discount rate to 4.75% in an attempt to encourage lenders to borrow from the Fed to keep up their lending to consumers.

   This is the third consecutive meeting at which the Federal Reserve Bank has cut interest rates since August and appears to be an admission by the Fed that inflation is not the biggest problem our economy faces at this time.

   The most recent jobs report shows that job growth has been sufficient to maintain moderate growth for the overall economy.  Strong U.S. exports (the bright side of a weaker dollar) are helping to create more jobs. Real gross domestic product growth through the first three quarters of 2007 averaged 3.1%.  The only real drag on the economy is the housing sector but I would submit that we are in a natural cycle of the real estate market, that had gone too high aided by an adjustable rate mortgage frenzy.

    This too shall pass.  We have already seen signs that the real estate market here in Maine is adjusting to the new reality, i.e. lower prices.  As long as banks are lending, people will be buying.  Although it is a painful time to be a seller, the majority of those sellers become buyers just as soon as they sign a purchase and sale contract on their present home.  A few years from now some people will be telling their friends "...I got this house for only (fill in the blank) in '07".  Others will ruefully say "...do you know what I could have had that property for in '07?"  Which will you be?

Jim Cosgrove

Latest Housing News

    Two new reports from government agencies this week concerning the housing market.  The Fed has a new policy of "transparency" and has made the first of what will be quarterly forecasts regarding the economy.  The central bank predicts no recession in the foreseeable future but does think that GDP will grow by a paltry 1.6 percent in 2008.

   Meanwhile the Census Bureau has issued a report that "housing starts" continue to slow and the number of new homes being built now is little more than half the level of two years ago.  Housing starts is an oft quoted statistic on the evening news but quite frankly I think it is a little misleading as it is the "used home" market that really reflects the value of what for most of us is our biggest asset.   But it is an indicator of the overall market, it is easy to track and news organizations are intrinsically lazy so that's what you're going to get.

   In making their forecast the Fed mentioned that unemployment is holding steady which is what gives them the confidence to predict that the economy will not slide into a recession.  Rather we are in a cyclical housing downturn (yes there were isolated "bubble" markets) that is being exacerbated by the problems in the mortgage market and then made to appear even worse by climbing oil prices and a hysterical news media driven by the explosion of 24 hour outlets and the need to report something. 

   There is some danger that tightening of credit could cause an even further drop in home prices but it appears that the Fed is doing what it can to keep that from happening.  From the viewpoint of a real estate broker on the street it appears that we will continue to muddle along while the market corrects itself.  There are many opportunities in a market like this and it continues to amaze me that Buyers who were only too willing to spend when prices were at their peak are pulling back now.  The herd mentality appears to prevail over the theory of buy low.

Jim Cosgrove

OPEN HOUSE in Damariscotta

    OK, you've been sitting around the house eating turkey and pie and watching football for 2 days now.  Time to get out, don't you think?  The air is crisp and clear and the sky is blue.  Why not head to Damariscotta and enjoy a walk around town?  Visit some of the shops and galleries and while you're at it stop 62 Elm Street, directly behind the theater and the library and visit with Debby and I while we hold an OPEN HOUSE at the Coveside Condominiums.

   This classic older building has been totally refurbished and remodeled with six, 1 bedroom "pied-a-terre" condominium units.  Granite counter tops, wood and tile floors, some with private balconies and some with fireplaces.  There will be great  amenities such as a dock and float on the Damariscotta River and on site laundry facilities.

   This project is affiliated with The Sheepscot Harbor Village and Resort in Edgecomb and it is possible for an owner at Coveside to place their unit into the rental program run by the resort and earn rental income if say they wish to only use their unit during the summer or for certain weeks during the year.  Complete housekeeping and management services are available.  The units can even be purchased completely furnished or unfurnished as you wish.

    So please stop by and see this great property right in the heart of all that Damariscotta has to offer.  We'll be there from 10 this morning until 2 this afternoon and any other time by appointment.

Jim Cosgrove

Maine Real Estate to Rebound in '08

    The New England Economic Partnership, a panel of economists from the regions six states has released their most recent forecast for the New England economy and are predicting that the slow growth of the last few quarters will begin to pick up by the second quarter of 2008.

   Speaking specifically of Maine and our housing sector, they further predict that our real estate market will pick up a little sooner than some of the other New England states. The panel of economists expect that when all is said and done by this time next year we will be in a period of modest, slow growth with a median home price that is about 10% lower than our pre-slump peak.

    Anecdotally speaking, right now there are many wonderful properties being offered on the market at prices that reflect a discount of more than 10% from the peak levels of '04-'05 so I think it's fair to say that there are bargains in this market.  There is an incredible amount of inventory on the market right now and while we work through this it will be a challenging environment in which to both sell and buy a home.   If you are ready to take advantage of the opportunities presented by current market conditions, our experienced brokerage staff is ready to show you how to maximize your investment.  Call or email today.

Jim Cosgrove

Damariscotta Condominium, With View!

    A great listing just got better.  The Elm Street Condominiums in Damariscotta recently "lost" the carriage house which had stood between the main building and the water behind the property.  This was a long planned move but is still is amazing how much the view has been opened up and the back of the building and yard is filled with light.

   I always find it impressive watching buildings being moved and apparently so do a lot of other people as the job attracted a small crowd of onlookers and even a videographer from Channel 6 in Portland.  Click here to watch the video of the carriage house going down Route 1 to it's new home in Sheepscot.

    The last remaining unit from this outstanding conversion project is a two level townhouse with two very private balconies overlooking the water, three or four possible bedrooms and beautiful built ins and woodworking details.  It is conveniently located within walking distance to all the Village of Damariscotta has to offer including shops, galleries, restaurants and the theater.  And it enjoys this wonderful view of Cottrill's Cove on the Damariscotta River.

   See more pictures and take a Virtual Tour of this property here.

Jim Cosgrove

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

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   

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

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!

Breaking News: Fed Cuts 50 Basis Points

    The Open Market Committee of the Federal Reserve Bank has reduced both the Federal Funds Rate and the Discount Rate a full half of a point this afternoon.  Investors have signaled their approval by driving the stock market up at a precipitous rate.

   Home sellers should remain reserved.  In a statement released by the Fed it was mentioned that their goal was to promote "...moderate growth over time."  I predict that this will have little immediate impact on a housing market awash in inventory but that it will do just exactly what the Fed is looking for.  Promote moderate growth over time.  It will be next spring or summer at the earliest before this market begins to pick up.

   Real estate brokers who encourage their clients to think otherwise are doing them a disservice.

Jim Cosgrove

Waiting for Bernanke

    I opened my newspaper this morning (I know I'm dating myself) to find the AP breathlessly reporting that "...for the first time in 4 years the Federal Reserve appears ready to lower interest rates...Tuesday."  This is exactly what many in our industry have been waiting for in the belief that, armed with a new quarter or half point lower interest rate Buyers will suddenly start snapping up homes.  Irrational exuberance, anyone?

   Maybe a dip in the interest rate will provide some stimulus to the real estate market.  It can't hurt.  But it's not going to be anything dramatic.  I've reported in this space before that here in Lincoln County, Maine we sell about 500 homes a year.  Sometimes a few more sometimes a few less. Over the long term prices go up.  Over the short term prices do dip but by and large prices move upwards, sometimes just slower than at other times.  A small change in interest rates is not going to dramatically change this dynamic.

   While a rate cut may have positive ramifications in the stock market the next day, I would be surprised if we saw any change in activity in our real estate market before spring and I hate to even think about how far away that is!

   The fact remains that we currently have 3 to 4 times more inventory on the market than we have buyers to consume that inventory. For the vast majority of home buyers, it is the single biggest purchase they ever make and they tend to take their time and move carefully. They will  in all likelihood have a Buyers agent who will be analyzing the value of the home of their choice for them. That means that in order to sell a home must be priced fairly and in the best possible condition since it will be compared to many other homes presently on the market. If you're considering placing your home for sale, please call today and arrange for an objective market analysis and recommendations for what you can do to prepare your home to compete for Buyers attention.

Jim Cosgrove

Saturday Solds

   Another in an occasional series showing a random sampling of properties in our market area that have "closed" recently.

   2235 Alna Rd., Alna. Listed for $486,000 and sold for $465,000 after 163 days on the market.

   121 Kelsey Drive, South Bristol.  Listed for $474,500 and sold for $474,150 after 39 days on the market.

 

   35 Castlewood Road, Newcastle. Listed for $269,000 and sold for $269,000 after 31 days on the market.

   26 Nob Hill Road in Newcastle, on Damariscotta Lake.  Listed for $349,000 and sold for $342,000 after 28 days on the market.

   237 Pemaquid Harbor Road, Bristol.  Listed for $249,000 and sold for $244,000 after 16 days on the market.

   28 Juniper Lane, Bristol.  Originally listed for $374,000 and sold for $285,000 after 434 days on the market.

   Although "sold" prices are readily available at the local town office for anyone who wishes to see them, we present them here in an effort to keep our readers aware of trends in the market.  For an in depth and confidential analysis of where your home fits in todays market call one of our brokers today.

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...

Jim Cosgrove

Behind the Scenes at Newcastle Square Realty

   There are two ladies who work here at the World Headquarters of Newcastle Square Realty who take care of the behind the scenes action while the Brokers are busy meeting with Listers and Buyers, showing property, negotiating contracts, holding open houses and all of the other activities that fill up their days.  These two ladies keep the information flowing and produce the high quality advertising and promotional pieces that we use as well as meeting and greeting those folks that walk in our door both literally and figuratively via our Internet portal.  Let me introduce them to you:

   On the right is Stacey Cole.  Stacey has been the long time assistant to Becky Brown and Miles Geisler and came to our organization with them when they joined us a few years back.  Both of them are superstars in their own right but it's Stacey doing the paperwork behind them that frees them up to be doing what they do best which is to list and sell a lot of property.    We've been able to pry Stacey away from them for a few hours a week and she has proven invaluable to us.   She has the ability to shift gears and jump right into what ever needs to be done and if she's ever gotten flustered I've missed it.

   Stacey grew up in this area, lives in Bristol with her fiance Jimmy a local lobster man and in her spare time likes to make jewelry and wicked good chocolate treats!

   On the left in the picture above is Linda Mitkus, our long time Office Manager. Previous to joining Newcastle Square Realty, Linda worked as a legal assistant for a local attorney and before that in a law office in Massachusetts from where she and her family moved 14 years ago.

   In addition to being the first person clients usually come in contact with here, Linda also does all of our computer input and has become quite skilled with Adobe photoshop and with creating most of our varied advertising pieces.  Linda and I have a deal, we're walking out the door here together at the end of our careers in real estate. I don't want to even think about trying to replace her.

   Linda's husband John is well known in his own right having been a long time bus driver for the local elementary school. Many children (and their parents) consider John an integral part of the faculty. Linda and John love "the hunt" when it come to antiques and we lose them when they go off to Wallace Nutting conventions.  If you come into the office be sure and ask Linda to see the pictures of their dogs Ruffian and Finnegan.  Linda has been known to provide what practically amounts to concierge service for many of our clients whose needs can be varied and complex at times. 

   Now you know the secret of what really keeps our office running so smoothly and makes all of our brokerage staff look good!

Jim Cosgrove 

OPEN HOUSE Saturday in Nobleboro

   This Saturday, August 25, we'll be showcasing two terrific properties in Nobleboro.  From 11 AM until 1 PM Tom Field will be at 350 Waldoboro Road (aka Route 1).  With it's highly visible location almost right at the head of Pemaquid Lake this home would be an outstanding spot for almost any type of home occupation.  The home has been extensively remodeled and updated including a wonderful new kitchen with brand new appliances, a new bathroom and fresh paint inside and out.

   Even though it has a great high visibility location it also has a peaceful wooded back yard , three bedrooms, a spacious living room with a fireplace and a great sun porch. 

At $214,900 this is real value!

   Also from 11 to 1 on Saturday and just around the corner and across from the Post Office, Debby Schling will be holding open 53 Nobleboro Woods Road.  This three or possibly four bedroom Colonial is only 6 years young, sits on almost 5 acres and is located at the end of a cul de sac in a small and very quiet sub division. 

   A 3 bay garage connected by a breezeway has been added and there is a large finished room above that could be the ultimate game room, artist studio, home office or mother in law quarters. This is a lot of house for $259,000!

   For those who may not be familiar with our area, Nobleboro is a quiet town just north of Damariscotta that bills itself as 'The Little Town with a Big Heart".  They have a highly regarded K-8 school and children receive a tuition voucher to attend the high school of their choice. There is a public boat landing and recreation area on Pemaquid Lake that is within walking distance of both of these properties.  Enjoy all the best of country living yet be just a 5 minute drive from the center of activity in downtown Damariscotta.

   Please visit with Debby and Tom this Saturday from 11 to 1 in Nobleboro and feel free to call our office at 563-1003 for directions. 

Saturday "Solds"

   Another in an occasional series showing a random sampling of properties in our market area that have "closed" recently.

Fish Point Road, near Pemaquid Beach. Listed at $995,000 and sold for $950,000 after 346 days on the market.

Summer Cove Road, Nobleboro with frontage on Duck Puddle Pond.  Listed at $499,000 and sold for $450,000 after 74 days on the market.

 

Timber Lane in Newcastle.  Listed for $365,000 and sold for $355,000 after 39 days on the market.

Damariscotta Lakefront camp in Nobleboro.  Listed for $275,000 and sold for $265,000 after 435 days on market.

   If you'd like to discuss the real estate market in Mid Coast Maine and the Pemaquid peninsula please call one of our brokers today.  We'll be glad to give you an opinion of where your property fits and also discuss strategies to help you maximize your return on your investment.

Jim Cosgrove

OPEN HOUSE Saturday in Bristol and South Bristol

   OPEN HOUSE Saturday in Damariscotta and Newcastle was so successful that we will reprise the event again this Saturday, July 28 only this time with homes in Bristol Mills, Pemaquid Harbor, Pemaquid Point, New Harbor, Walpole and further down in South Bristol on both sides of the peninsula.  We even have one home open in Bremen.

   This is a great opportunity for those people who have been looking at property in our area to see several homes in a short span of time without having to go through the appointment process or the need for several brokers to coordinate schedules.  Maybe you have friends or relatives that are interested in moving to the area and you'd like to do some advance scouting or maybe you have a broker you're working with already in which case feel free to invite them to come with you!

   The following homes will be "open" from 11 to 1 on Saturday (click on the pictures to enlarge or on the link to go to that homes web page where you'll find all of the information):

Bill Byrnes will be at Indian Ledge Trail in Pemaquid.

This is a terrific property with seasonal sunset views over the waters of Johns Bay and a right of way to that waterfront.

Becky Brown will be at 81 Boulder Road in Bristol in this lovely home on the Damariscotta River. With complete privacy and westerly views across the water this is a great property!

    Lee Simard will be further down the peninsula at 2927 Bristol Road close to Pemaquid Beach and the village of New Harbor in this Post and Beam home.

    Just a short distance away at 2178 Bristol Road will be Anne Peaslee in this Cape that just has to be seen to be appreciated.  The artist owner has done a marvelous job of making this homes interior special! 

   Drawing a lot of interest already is this new listing at 237 Pemaquid Harbor Road where Kathleen Shattuck will be only too happy to show you around.  If you're there at lunch time the Pemaquid Harbor Lobstermans co-op is just a short walk away and they may have the best lobster roll on the coast of Maine!

    Up the road in Bristol Mills, Bill and Tracy Babcock will greet you at 1284 Bristol Road.  This is a wonderful 1830's farmhouse that has been restored, not renovated, and is walking distance to the local swimming hole!

   Moving over to South Bristol you'll want to start at number 390 on Route 129 in Walpole.  Tom Field has listed this 1850's farmhouse that comes complete with a barn and paddock for the horses.  some may consider it an added bonus that the golf course is nearby!

    Heading down the peninsula we have a special treat, this fabulous property on the Damariscotta River!  Brand new to the market and never before offered this may be one of the finest pieces of riverfront to come on the market this year.  If Debby Schling isn't in the home when you get there be sure to wander on down to the dock!   The address is Fiddlers Lane and it's on the right going down Route 129.

    I'll be out on the deck watching the boats sway at anchor in Kings' Cove at this home at 52 Sloop Nellie Road.  please come down and join me.  Bring your bathing suit if you'd like and try out the private sand beach!

   

   And over on the other side of the Peninsula off of Route 32 in Bremen, Ken Gray will be waiting to show you modern Cape.  The master suite in this home is outstanding and there are many other fine features, don't miss it!

   If you would like directions to any of these properties please call our office at 563-1003 or stop in and we'll be glad to give you printed sheets with all of the properties listed.  If you can't make it Saturday but think one of the homes may be right for you we hope you'll call one of our brokers and arrange a private showing.

Jim Cosgrove

Window of Opportunity

    "How much is that little house in the window?"

   A young couple in their late 50's walked into the Newcastle Square Realty office to inquire about a photo and description of a house which they saw featured along with many others in the front window display.

   Newcastle Square Realty has a wonderful location in downtown Damariscotta where local people and visitors are always stopping by and checking out the Listings in the window.  I know that when my husband Bill and I are on vacation, we love to check out the real estate offerings in other parts of the country.  I know, I said when we are on vacation but, we can't resist.

   I not only told these people the price but was able to give them a survey and a data sheet with all of the pertinent information. I also told them that I would be available that afternoon if they would like to see the property. They said "yes" but they wanted to make it clear that they really weren't considering buying as they had never even been to Damariscotta before and they didn't know anything about the area and besides, they weren't retired yet.

   "No problem", I said.  I will give you a little tour of the area and we can see the house and who knows, maybe you'll come back some day when you are ready to buy a house.

   Well, it was love at first sight.  The woman walked into the cottage and said over and over, "I love this house, I love this house."  So, they bought it.

  Since then this couple have decided that they need to winterize the cottage they bought because they plan on retiring in a few years and live here year round. I guess they are convinced about what a wonderful community we have here in mid coast Maine.

   So, a major life change due to a little picture in a window.  Come on by and check out our windows and then come in and check out our other photos on the boards just inside the door.  Or, list your property for sale with Newcastle Square Realty and you can give someone an opportunity to see a photo of your house and come into our office and ask, "how much is that house in the window?"

Tracy Babcock

OPEN HOUSE Saturday in Damariscotta - Newcastle

   If you've been looking for a new home in the greater Damariscotta area or even just thinking about looking for a new home, you won't want to miss OPEN HOUSE SATURDAY on July 14th.  From 10 AM to 12 PM 9 homes in Damariscotta, Newcastle, Damariscotta Mills and Sheepscott will be open for viewing.  The Listing Brokers will be on hand and will be glad to talk with you about these and other fine properties in our area.

   The homes open this Saturday are:

97 Westview Road in Damariscotta

The Townhouses (2 Units) at 186 Elm St. in Damariscotta

64 Huston Cove Lane in Damariscotta

387 Bristol Road in Damariscotta

43 Pond Road in Damariscotta Mills

70 Stonebridge Circle in Newcastle

51 Pleasant Street in Newcastle