I admit, I am watching too much news lately and it is mostly not so good news. Inflation is still charging higher, gas prices have come down a bit, but the cost of a gallon is still very high especially compared to last year! Heating oil, natural gas and electricity have all gone up. Mortgage interest rates are just above 6% and that is double what they were just a short time ago. I’m ready for a change! Are you?
During the 25 plus years we’ve worked in real estate we have seen a lot of changes in the real estate market and some turbulence too. From 2008 to 2010 when the number of foreclosures were high in many parts of the country, most parts of Maine stayed the course and held our values.
So how is our current economy effecting the local real estate market?
2022 start off fairly strong but as spring turned to summer was saw a slow return toward a “normal” market. The fever pitch of spring with up to 25 offers on each listing at way above asking price, turned into 1-3 offers per listing with a bit mor negotiating and even a few price drops on some listings. Our South Portland listings still did very well – usually go under contract above the asking price, but we didn’t get the high bids we saw during the spring.
Lets take a look at the SOLD data for South Portland and Cape Elizabeth: The number of homes sold year-to-date in 2022 is down 17.7% compared to what sold during the same time period in 2021. The list price to sale price ratio is 108.5% which has meant homes selling for anywhere from $20,000 to $180,000 over their asking price. We expect this percentage to go down as competition lessens and fewer offer are made on each listing.
Traditionally, we see a very active fall real estate market and I don’t expect that to change. We have a number of seller clients that are almost ready to put their homes on the market and we still have a long list of buyers that are ready to buy!
Let us know if there is anything we can help you with. You may not be ready to jump into the real estate market just yet, but we can help you get ready for when the time is right. We are always happy to share contractor referrals and to help with future strategic planning.
Enjoy the fall leaves—they are a-changin’.