As we move deeper into the Spring of 2015 all signs are pointing toward an above-average surge in spring inventory. You can search all of the Maine MLS for properties for sale just by CLICKING HERE!
After many years of declining prices due to over-supply 2014 showed some gains in sales and values in the urban/suburban areas of Southern Maine. Cities around Portland and Portland itself have been seeing steady growth in real estate sales and in new construction. I believe that a combination of factors, including the successes of 2014, will bring about a huge wave of housing inventory this spring. First of all is the fact that the average home-seller believes that Spring is the time to list. This belief has created a self-fulfilling cycle of listing inventory growing every spring, in every market. Inventory swells so buyer activity picks up and therefore offers are generated and sales are made. Real estate is being transferred every month of the year and some folks get the best values off-season, after spring sellers have had some time to weather the market, but that is a topic for another post some day. The fact is that many new listings will come on in the next 30-60 days.
Another factor is a reverse-migration back out of the country and back into the cities. Homesteading is hard, hard work and the post-911 wave of people that took to or stayed in the woods need jobs. The only real job growth in Maine is in the cities, as the Boston megalopolis continues to reach north along the Rt 95 corridor.
Then there is the pent up seller frustration from sellers that wanted to sell in 2009, at the height of the real estate recession, but held off to wait for better times. 2014 sales reporting has created that sense that the “better times” have arrived, at least from the myopic perspective of someone that is relying on their property values for their wealth. Sellers that wanted to sell, perhaps as part of their retirement strategy, in 2009 are now 6 yrs older and hope and change didn’t come to it’s full fruition. If a seller were 65 and looking to go to FL on the money from the sale of the house, that same seller is now 71 and wondering if they can still live that dream. Time is running out and there may not be a second chance, so they are getting ready to get out now.
The combination of the annual surge in inventory and the reports of better real estate sales activity is setting the stage for more inventory than we have seen int he past recent years. Homes, condos, land and vacation homes will be coming on the market all around Southern Maine. The good news is that mortgage interest rates are so low that buyers can afford to buy vs renting in many communities and lower prices, pushed down by over-supply, will create some great opportunities for the next generation to also enjoy the advantages of home ownership, or second home ownership (a trend growing among urban renters).
If you appreciate me sharing these thoughts and professional insights, please contact me to help with your real estate needs in Southern Maine.