Generally I keep my posts limited to statistical in nature, disseminating the monthly housing statisics on the various Southern and Coastal Maine real estate markets.
Why? Primarily simply to generate links back to my website www.mymaineproperty.com in an effort to boost Google juice/rankings which is motivated mostly by the desire to "hook" potential new buyers perusing the internet, ultimately closing the deal and making money, but hopefully a new friend along the way, (this is one of the greatest perks of being an agent for me)! Does this make me a bad person? I hope not!!
Anyhow, this post is already drastically different in form, function and content and I write now simply to give my 2 cents on where I think the Maine market is going over the next few months and years for anybody who wants yet another opinion.
3 Assumptions I begin with:
1) The stock market will continue to at best stay flat but more than likely continue to trend Northwards.
2) No major global disaster will occur
3) The general public will continue to regard a properly prepared Maine lobster as a true delicacy (Note: contact me for proper preperation protocol as I find many "outsiders" do not konw the secrets of "less water, salt water")
I think the first time home buyer tax credit is one of the best things the government has ever done, yes it is bascially just creating more debt for China to buy and further control us, but compared to other monies the government has spent, so so so many people can and are benefiting from it who would not have been buying now if this credit had not been put into effect.
This 1st time buyer population is driving the Maine market and will continue to do so for the rest of the year helped along by the low interest rates. Median prices will continue to rise as the inventory of lower priced homes shrinks from the high demand, but this rise will be tempered by the many continued short sale and foreclosure properties.
The average home price will continue to trend downward/remain flat as the mid and high priced markets in Maine will continue to come down a bit as the buyers of these properties make low ball offers that many sellers will not accept, but many will out of lack of other options.
This trend will continue until the forclosures and short sales are gone, the length of this I do not know? Assuming global markets have stabalized/risen, interest rates will probably now be rising at alarming levels, tempering the low end buying population, but bringing tons of cash buyers to the higher end properties, thus raising the average home price but lowering the median as 1st time purchasing slows.
The moral of this story: Buy now either way, because the deals are great and money will probably never be this cheap again EVER, but if a bomb goes off in Iran or the stock market goes down to 5000, well... go buy a boat and sail to the Caribbean like I did last year, take a look :) www.caribbeanendeavor.com
Thanks for reading whoever got this far and I hope somebody comments on this!
For more info or if interested in discussing the markets further, please reach out to me at john@greentreemaine.com or take the plunge and dare to talk on the phone in person at 207-650-5383.
John Herrigel
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