So how did we do? Not bad, the number of sales was up 10,486 vs. 9502 in 2008, a 10 percent increase. The median price of these homes fell to 164,000 vs. 180,000 in 2008, a drop of nearly 9 percent. In Cumberland County, the increase in units was just over 9 percent and the median price dropped about 6 percent to 220,000.
Nationally the increase in units was 5 percent and median price drop was nearly 12 percent to $173,200. We're selling more homes, and the prices are continuing to fall. The first time home buyer is king and enjoying the lowest prices and best interest rates in years. The median price of a home sold in Maine is getting closer and closer to the national median.
In interpreting these numbers, one must factor in the $8000 tax credit (gift) available to first time home buyers for most of the year vs. the $7500 tax credit (loan) which was available in 2008. Perhaps the gains should have been higher than 10%. Time will tell if the extended and expanded tax credit ($6500 to sellers who have lived in their home for at least 5 of the last 8 years) will prop up the rest of the market in 2010. We'll be watching closely.
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