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Portland, Maine Condos - Have we hit rock bottom?

By
Real Estate Agent with Prudential Northeast Properties

As one of my real estate role models Barbara Corcoran said recently on the Today Show, "You can never know.  But most people agree that we are IN the bottom, and the smart people - the sharks - are out there buying right now."

Those people - the sharks - are the ones who know how to find the right segments of the market and take advantage of the opportunities they have to offer.  What does that mean for Portland?

As we approach the end of the 2nd quarter of 2008, I thought it would be helpful to take a look at a few of the more popular markets and see how they've been performing. 

Since much of my business is in the condo market, I'm looking at the median sale prices for condos in three neighborhoods: Portland's East End, Downtown/Old Port, and West End. 

The periods of time I'm comparing are January 1, 2007-June 20, 2007 and the same period for '08.

In general, the median condo price in Portland (FYI - the median condo price will generally buy you a 2-bedroom, 1-bath condo between 1,000 and 1,100 square feet) dropped from $210,000 in 2007 to $202,000 this year.

Keep in mind that when the median price goes down, it doesn't necessarily mean that values have gone down.  It can simply mean that there are more affordable products available (smaller condos, for instance, or condos that need more work).

East End: Prices are down, and sales are up - indicative of a buyer's market.

2007: 8 sales, MSP $272,500

2008: 11 sales, MSP $250,000

Downtown/Old Port: Prices are down, and sales are up - indicative of a buyer's market.

2007: 13 sales, MSP $335,000

2008: 22 sales, MSP $243,000

West End: Prices are up, and sales are down - much of the affordable conversion inventory has been flushed out - we could have already seen the bottom here.

2007: 60 sales, MSP $176,250

2008: 38 sales, MSP $189,950

To explore the segment YOU're interested in, check out my website below to conduct a property search WITH ADDRESSES. 

http://michelleflaherty.mainelistings.com

 

Anonymous
David in Dallas

Although Portland is an attractive city, there's not a lot driving the economy other than tourism, which at it's best is a seasonal entity. I've been observing condo and house values in Portland over the last 5 years - compared to those in the Dallas, TX area, where the economy is driven by some major players.

I think most of the sellers in the Portland area are off their rockers.

With the costs of energy and other necessities of life increasing, the prices of real estate are frequently absurd.

Sep 08, 2008 12:51 AM
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