Southern Maine Market Update  - Buyers Make Your Move

As you may have heard recently in the local and national news, the real estate market is shifting rapidly these days.  In Maine there was no change in the median sales price of a single-family home ($195,000) during the month of August 2006 compared to the same time frame in 2005.  However, nationally the median price decreased for the first time in over ten years (albeit by only 1.7%).

The number of real estate transactions reported, however, tells a very interesting story.  In August of 2006 17.8% fewer homes changed hands in Maine than in August 2005.

As we have reported to you in earlier editions of this newsletter and in our Maine Real Estate Blog, the local market has clearly shifted from seller-favored conditions to one in which buyers can take a little more time to shop for what they really want.  Inventory of available properties is up and ìtime on marketî has, on average, lengthened this year. 

If you are in the market to buy property in Southern Maine, you have an excellent window of opportunity right now.  The upcoming winter season is a great time to find the house you want at a very good value.

A big question on many minds is Will my property appreciate in 2007?  While some markets around the country are seeing a couple of points of depreciation, single-family homes in Maine will continue to hold their value.  The heady days of double-digit annual appreciation are over for a while, but I think that maintaining value will continue as a strength for the Maine real estate market compared to many other parts of the US.  Some local market segments will likely see modest gains in 2007 and, as you would expect, these will be tied to location.  Keep your eye on Greater Portland's pedestrian-friendly neighborhoods.

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Get Money for Energy Efficiency - Maine Launches 1% Loan Program

The Maine State Housing Authority is launching an innovative program to provide extremely low-cost loans to residents making energy efficiency upgrades to their homes.  In fact, qualifying homeowners can get up to $15,000 in loans at a 1% interest rate if the actual work is recommended during an official energy audit of the home.  This is really an incredible opportunity to save some serious money and make energy-saving improvements!

Click here for a list of eligible improvements.
Click here for a list of approved Energy Auditors in Maine.
For a brochure about the entire program, click here.
(Alternatively, you can go directly to the Maine State Housing Authority web page and click on the HELP program link)

Real Estate as an Investment

Real estate can be an attractive way to diversify your investment portfolio.  Greater Portland offers some very sound vehicles for this type of investment, including a wealth of multi-family properties.  We recommend that anyone considering this strategy take some time to learn about real estate investing before jumping in with both feet. To that end, we recently blogged about four of my favorite real estate investment books.  These excellent resources should be considered essential reading for both new investors as well as experienced property owners.  Please take a moment to check out our recommendations and feel free to comment with any suggestions on other good real estate investment resources.