Real Estate Market "Normalizing" in 2006?

Lots of people are talking about how quickly the local real estate scene changed from a sellers' market to a buyers' market over the course of 2005.  It's true that after the few intense years preceding it, 2005 felt like a very different market in which to buy and sell Maine properties.  While we saw signs of it earlier in the year, things really changed by the fourth quarter:  much more "inventory" for sale, more days on the market for most homes, fewer bidding wars when desirable properties hit the market. 

However, I think this represents a move toward a more normal real estate market.   In fact, property in Southern Maine is still likely to experience appreciation in 2006, though probably not the double-digits of previous years.  Fewer properties will sell as rapidly as they once did and all properties will need to be marketed more systematically and professionally.  The sellers' market of the last few years was very forgiving in this regard and I see that changing now.

Interest rates are still very low historically speaking and, by all indicators, the volume of real estate that changes hands in 2006 will continue be very respectable.  Will buyers be able to do well and find bargains in 2006?  Absolutely.  Will sellers need to get serious and savvy about their sales strategies?  Yes.  We all just need to be smarter about every purchase and every sale in this more "normal" real estate marketplace.

Visit the Maine Real Estate Blog to read and comment about the market.

New Construction...

We are still seeing a good number of clients move in the direction of new home construction these days as we match them up with building lots and contractors on "build to suit" packages.  An interesting trend - possibly related to increasing costs of transportation and energy - is a renewed interest in new construction closer to town centers, in neighborhoods and in "condominium communities."  (For example, we are currently offering free-standing condo homes at Shepard's Way near Gorham center).  There's quite a bit to recommend this type of living for people at various stages of their property-owning lives.  In fact, this month's Port City Life magazine features an article entitled "Condo Mania," no doubt reflecting the trends here in Southern Maine.

... and Green Building

My wife and I recently attended an event put on by the Maine Chapter of the US Green Building Council.  There was a great turnout and some inspiring speakers from both the public and private sectors.  Green building, energy efficiency and good design have always been areas of interest for me and I am really encouraged by the strides being made here in Maine.  Interest is definitely growing.  I look forward to offering some green building expertise to our clients who want to make a move with energy efficiency or "green" retro-fitting in mind.  We also love to connect buyers with contractors for "sustainable" design-build projects.

Newsflash:  Energy Efficiency Named as Biggest Trend in Home Building

To learn more about green building in Maine, check out the Maine Chapter of the US Green Building Council.

Featured Properties This Month

We've got some great featured properties this month, ranging from a unique condo in Portland's West End to an updated New Englander in Westbrook, lakefront in Standish and land in Hiram !

Click here to see all our Featured Properties.