Central Maine Blog

LAW NARROWS SECOND HOME TAX BENEFIT
August 11th, 2008 12:56 PM
   Here's a summary included in REALTOR Magazine Online (8/7/08) - "The housing-stimulus package that became law last week took a bite out of the home-sale exclusions for second-home owners. Under both the previous and the current law, most homeowners can sell their primary residence and exclude as much as $250,000 of the gain if they're single or $500,000 if they are married and file jointly. To qualify for the full exclusion, owners typically must have owned the home and used it as their primary residence for at least two of the five years prior to the sale. In the new law, which takes effect Jan. 1 and affects property acquired after 2008, owners can't exclude the gain from the sale of the home allocated to periods of 'nonqualified use.' That refers to any period (after the end of 2008) when the property isn't used by the owner, spouse or former spouse as a principal residence. For example, a married couple buys a home Jan. 1, 2009, for $600,000 to hold as an investment. On Jan. 1, 2012, three years later, they begin using it as their principal residence. They live there for two years and sell the property on Jan. 1, 2014, for $1.1 million for a profit of $500,000. Under the old law, they would have been able to exclude the entire $500,000 gain from their taxable income. But under the new law, they could exclude only two-fifths of the gain, or $200,000, since the other three-fifths would be considered attributable to the three years the home wasn't their principal residence. Source: The Wall Street Journal, Tom Herman (08/06/2008)"

Posted by Rachel Anderson on August 11th, 2008 12:56 PMPost a Comment (0)

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Senate Housing Bill Helps Homeowners
August 5th, 2008 11:34 AM

The Senate Housing Bill: S.2636 Foreclosure Prevention Act of 2008, has been signed into law introducing sweeping changes to the way we do business.  Freddie Mac just put financial incentives in place that will help some realtors close more transactions.   Go to www.senatehousingbill.info to find out how you can take advantage of these important changes.  

 

Best regards,

 

Rachel Anderson


Posted by Rachel Anderson on August 5th, 2008 11:34 AMPost a Comment (0)

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Augusta/Waterville Ranks 17th of America's Dreamtowns
July 31st, 2008 5:29 PM

America's Dreamtowns: Profiles of 140 towns

bizjournals - July 21, 2008

by G. Scott Thomas

More info: Main story | 10 highest-ranked towns | Methodology

1-20 21-40 41-60 61-80 81-100 101-120 121-140

Rank

Micropolitan area

Quality of life score

Average commuting time (minutes)

Median household income

Management and professional jobs

Homeownership rate

Adults (25 or older) with bachelor's degrees

Air mileage to closest major metro

Micropolitan area population (2006)

1

Torrington, Conn.

18.19

25.2

$66,664

39.0%

77.4%

31.9%

81 miles (New York City)

190,119

2

Bozeman, Mont.

17.01

20.6

$47,532

33.6%

66.2%

45.2%

517 miles (Denver)

81,763

3

Lexington Park, Md.

16.96

26.6

$71,158

40.2%

71.9%

24.4%

48 miles (Washington)

98,854

4

Lebanon, N.H.-Vt.

16.41

20.3

$49,526

39.0%

73.6%

34.5%

112 miles (Boston)

172,429

5

Helena, Mont.

15.44

16.3

$45,013

40.0%

73.4%

30.8%

480 miles (Seattle)

69,212

6

Kalispell, Mont.

14.33

18.9

$45,920

29.9%

76.1%

25.3%

373 miles (Seattle)

85,314

7

Mankato-North Mankato, Minn.

14.06

16.8

$46,104

33.2%

69.8%

33.8%

62 miles (Minneapolis-St. Paul)

89,567

8

Oak Harbor, Wash.

12.99

25.5

$49,022

33.7%

78.9%

27.3%

40 miles (Seattle)

81,489

9

Stevens Point, Wis.

12.66

17.5

$52,354

34.6%

74.1%

30.5%

187 miles (Minneapolis-St. Paul)

67,484

10

Concord, N.H.

12.56

23.7

$55,072

35.1%

69.6%

28.9%

72 miles (Boston)

148,085

11

Midland, Mich.

11.23

21.9

$48,360

39.4%

76.7%

33.3%

107 miles (Detroit)

83,792

12

Chambersburg, Pa.

10.97

22.6

$50,254

31.3%

75.4%

17.0%

69 miles (Baltimore)

139,991

13

Gettysburg, Pa.

10.64

26.6

$53,932

25.9%

79.4%

18.9%

48 miles (Baltimore)

101,105

14

Traverse City, Mich.

10.61

20.4

$46,939

28.0%

80.6%

26.0%

189 miles (Detroit)

141,387

15

Allegan, Mich.

10.28

22.6

$50,558

26.7%

84.8%

19.5%

105 miles (Chicago)

113,501

16

Brainerd, Minn.

10.21

20.9

$42,269

27.8%

82.1%

20.5%

112 miles (Minneapolis-St. Paul)

90,045

17

Augusta-Waterville, Maine

8.88

20.9

$44,758

34.4%

71.1%

24.3%

158 miles (Boston)

121,068

18

Hilton Head Island-Beaufort, S.C.

8.86

20.3

$48,190

28.8%

68.2%

33.1%

216 miles (Atlanta)

162,781

19

Truckee-Grass Valley, Calif.

8.58

22.8

$50,675

33.9%

74.0%

29.1%

136 miles (San Francisco-Oakland-San Jose)

98,764

20

Marshfield-Wisconsin Rapids, Wis.

8.53

19.6

$45,937

29.0%

81.3%

20.1%

166 miles (Minneapolis-St. Paul)

74,774


Posted by Rachel Anderson on July 31st, 2008 5:29 PMPost a Comment (0)

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JUNE sales Statistics
July 28th, 2008 11:36 AM

MAINE’S MEDIAN HOME PRICES DOWN IN JUNE

SOUTH PORTLAND (July 25, 2008) - Sales of single-family existing homes in Maine continued to decrease in June 2008. According to the Maine Real Estate Information System, Inc. (MREIS), Realtors sold 996 homes last month, a drop of 24.32 percent from last June’s sales figure of 1,316 homes. During the past 12 months, Maine’s median sales price has decreased nearly six percent to $188,000. The median sales price indicates that half of the homes were sold for more and half sold for less.

There is some good news for sellers; the median sales price climbed in five of Maine’s 16 counties during the months of January through June combined.  The National Association of Realtors (NAR) reported a nationwide sales drop of 14.8 percent in June. The national median existing single-family home price dipped 6.7 percent to $213,800. Regionally, sales in the Northeast fell 15.8 percent during the past 12 months.  According to NAR, the regional median sales price decreased 12.6 percent to $256,700.

Below are two charts showing statistics for Maine and its 16 counties. The first chart lists statistics for the month of June only, statewide. The second chart compares the number of existing, single-family homes sold (units) and volume (MSP) during the months of January through June of 2007 and 2008

JUNE ONLY CHART

From June 1-30, 2007 and June 1-30, 2008

County # Units Sold # Units Sold % MSP MSP %

2007 2008 Change 2007 2008 Change

STATEWIDE 1316 996 -24.32% $199,950 $188,000 -5.98%

HALF-YEAR CHART

January 1, 2007 – June 30, 2007 and January 1, 2008 – June 30, 2008

County # Units Sold # Units Sold % MSP MSP %

2007 2008 Change 2007 2008 Change

STATEWIDE 5637 4373 -22.42% $195,000 $185,000 -5.13%

Androscoggin 419 315 -24.82% $162,500 $155,000 -4.62%

Aroostook 136 124 -8.82% $89,000 $91,250 2.53%

Cumberland 1480 1125 -23.99% $249,900 $236,000 -5.56%

Franklin 127 87 -31.50% $136,000 $140,000 2.94%

Hancock 222 175 -21.17% $212,750 $199,100 -6.42%

Kennebec 514 384 -25.29% $145,000 $140,000 -3.45%

Knox 208 172 -17.31% $220,000 $196,500 -10.68%

Lincoln 157 120 -23.57% $220,000 $213,750 -2.84%

Oxford 238 187 -21.43% $148,250 $151,500 2.19%

Penobscot 621 514 -17.23% $144,000 $135,000 -6.25%

Piscataquis 88 55 -37.50% $101,250 $88,350 -12.74%

Sagadahoc 155 124 -20.00% $205,000 $190,400 -7.12%

Somerset 159 130 -18.24% $107,000 $97,500 -8.88%

Waldo 142 134 -5.63% $151,875 $165,000 8.64%

Washington 31 23 -25.81% $95,000 $136,000 43.16%

York 940 704 -25.11% $234,765 $227,000 -3.31%

Source: Maine Real Estate Information System, Inc. Note: MREIS, a subsidiary of the Maine Association of REALTORS, is a  statewide Multiple Listing Service with over 5,200 licensees inputting active and sold property listing data. Statistics reflect properties reported as sold in the System within the time periods indicated.


Posted by Rachel Anderson on July 28th, 2008 11:36 AMPost a Comment (0)

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Notable Statistics
July 23rd, 2008 1:35 PM
The Maine Real Estate Commission (MREC) has compiled statistics of license counts for three years (note - they count from June to June - not regular calendar year).  The number of Agency licenses comparing June 2008 with June 2006 is DOWN 94; number of Designed Brokers is DOWN 180; number of Brokers is UP 112; Associate Broker is UP 353; and number of Sales Agents is DOWN 1563 licensees (783 sales agents in June 2008 compared with 2346 in June 2006).  Statistics for NEW Licenses Issued (all types) in those time periods show a total DECREASE of 840 new licensees comparing June 2008 (1197) to June 2006 (2037).

Posted by Rachel Anderson on July 23rd, 2008 1:35 PMPost a Comment (0)

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Just Listed! 4 Hazelwood Avenue Waterville, ME 04901
July 19th, 2008 3:50 PM
Header
Header_2
Listings Photo
$99,900.00
4 Hazelwood Avenue

Waterville, ME 04901



Beds: 3.0 Rooms: 3
Baths: 2.00 Sq. Ft.: 1839.00
Garage: 2.0 Built: 0
 

Very spacious dormered Cape w/ 3 to 4 bdrms. Metal roof, vinyl replacement windows, paved driveway & vinyl siding. Huge 2 car garage w/ above storage area. Convenient location; close to local amenities. Priced to sell!
This is a new listing that
I thought you might be
interested in. Visit this
listing online to see more
photos of the property,
Google Earth satellite
images, and much more.
 

If you have any questions
about this property or
require more information,
please feel free to call.

Rachel Anderson
The Rachel Anderson Team, Central Maine Homes LLC Brokered By Coldwell Banker Plourde Real Estate
(207) 649-2156
www.rachelandersonteam.com



 
  Visit this listing at Here

Posted by Rachel Anderson on July 19th, 2008 3:50 PMPost a Comment (0)

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May Sales Statistics - 15-20 % Decline
June 27th, 2008 11:14 AM

MAINE REAL ESTATE MEDIAN PRICES DOWN 5.7% IN MAY

SOUTH PORTLAND (June 26, 2008)—Sales of single-family homes in Maine declined during May.  According to the Maine Real Estate Information System, Inc., a total of 969 single-family existing homes changed hands during the month, a 12.39 percent decrease from May 2007’s sales figure of 1,106 homes sold.

The median sales price for those homes was down 5.7 percent to $182,000. The median sales price indicates that half the homes were sold for more and half sold for less. However, during the rolling quarter sales period, which includes the months of March, April and May combined, five of Maine’s 16 counties experienced an increase in the median sales price.

Nationally, single-family home sales are 14.5 percent lower than in May 2007. According to the National Association of Realtors (NAR), the national median existing single-family home price dipped 6.8 percent in the past year to $206,700. Home sales in the Northeast were down 15 percent. The regional median sales price decreased 2.4 percent to $278,000.

Following are two charts showing statistics for Maine and its 16 counties. The first chart lists statistics for the month of May only, statewide. The second chart compares the number of existing, single-family homes sold (units) and volume (MSP) during March, April and May of 2007 and 2008.

MAY ONLY CHART

From May 1-31, 2007 and May 1-31, 2008

County # Units Sold # Units Sold % MSP MSP %

2007 2008 Change 2007 2008 Change

STATEWIDE 1106 969 -12.39% $193,000 $182,000 -5.70%

ROLLING QUARTER CHART

From March 1, 2007 – May 31, 2007 and March 1, 2008 – May 31, 2008

County # Units Sold # Units Sold % MSP MSP %

2007 2008 Change 2007 2008 Change

STATEWIDE 2935 2327 -20.72% $195,000 $182,500 -6.41%

Androscoggin 232 168 -27.59% $161,750 $149,750 -7.42%

Aroostook 82 64 -21.95% $83,185 $89,250 7.29%

Cumberland 779 602 -22.72% $245,500 $233,688 -4.81%

Franklin 58 42 -27.59% $124,950 $136,000 8.84%

Hancock 116 81 -30.17% $212,750 $178,500 -16.10%

Kennebec 261 207 -20.69% $146,000 $143,500 -1.71%

Knox 99 92 -7.07% $225,000 $186,000 -17.33%

Lincoln 80 71 -11.25% $239,100 $190,000 -20.54%

Oxford 128 102 -20.31% $135,000 $150,500 11.48%

Penobscot 303 275 -9.24% $146,500 $136,300 -6.96%

Piscataquis 36 27 -25.00% $90,798 $75,000 -17.40%

Sagadahoc 80 64 -20.00% $210,000 $189,500 -9.76%

Somerset 85 72 -15.29% $109,900 $95,500 -13.10%

Waldo 73 65 -10.96% $146,200 $160,000 9.44%

Washington 18 12 -33.33% $90,990 $137,500 51.12%

York 505 383 -24.16% $230,500 $225,000 -2.39%

Source: Maine Real Estate Information System, Inc. Note: MREIS, a subsidiary of the Maine Association of REALTORS, is a statewide Multiple Listing Service with over 5,800 licensees inputting active and sold property listing data. Statistics reflect properties reported as sold in the System within the time periods indicated.


Posted by Rachel Anderson on June 27th, 2008 11:14 AMPost a Comment (0)

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Just Listed! 7 Hussey Hill Road Albion, ME 04910
June 12th, 2008 12:53 PM
Header
Header_2
Listings Photo
$299,900.00
7 Hussey Hill Road

Albion, ME 04910



Beds: 8.0 Rooms: 8
Baths: 6.00 Sq. Ft.: 2600.00
Garage: 1.0 Built: 1910
 

This is a new listing that
I thought you might be
interested in. Visit this
listing online to see more
photos of the property,
Google Earth satellite
images, and much more.
 

If you have any questions
about this property or
require more information,
please feel free to call.

Rachel Anderson
The Rachel Anderson Team, Central Maine Homes LLC Brokered By Coldwell Banker Plourde Real Estate
(207) 649-2156
www.rachelandersonteam.com



 
  Visit this listing at Here

Posted by Rachel Anderson on June 12th, 2008 12:53 PMPost a Comment (0)

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Just Listed! 17 Whitten Road Clinton, ME 04927
June 11th, 2008 5:47 PM
Header
Header_2
Listings Photo
$174,900.00
17 Whitten Road

Clinton, ME 04927



Beds: 3.0 Rooms: 3
Baths: 1.00 Sq. Ft.: 1700.00
Garage: 2.0 Built: 1993
 

This is a new listing that
I thought you might be
interested in. Visit this
listing online to see more
photos of the property,
Google Earth satellite
images, and much more.
 

If you have any questions
about this property or
require more information,
please feel free to call.

Rachel Anderson
The Rachel Anderson Team, Central Maine Homes LLC Brokered By Coldwell Banker Plourde Real Estate
(207) 649-2156
www.rachelandersonteam.com



 
  Visit this listing at Here

Posted by Rachel Anderson on June 11th, 2008 5:47 PMPost a Comment (0)

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Just Listed! 37 North Pond Road Rome, ME 04963
June 10th, 2008 4:14 PM
Header
Header_2
Listings Photo
$294,900.00
37 North Pond Road

Rome, ME 04963



Beds: 0 Rooms: 0
Baths: 0 Sq. Ft.: 0
Garage: 0 Built: 0
 

This is a new listing that
I thought you might be
interested in. Visit this
listing online to see more
photos of the property,
Google Earth satellite
images, and much more.
 

If you have any questions
about this property or
require more information,
please feel free to call.

Rachel Anderson
The Rachel Anderson Team, Central Maine Homes LLC Brokered By Coldwell Banker Plourde Real Estate
(207) 649-2156
www.rachelandersonteam.com



 
  Visit this listing at Here

Posted by Rachel Anderson on June 10th, 2008 4:14 PMPost a Comment (0)

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Fannie Mae Financing Policy Changes!
May 20th, 2008 12:52 PM

Fannie Mae Withdraws Declining Market Policy, or Do They?

Fannie Mae just announced a withdrawal of their declining market policy! To quote from Announcement 08-10, “Lenders are no longer required to make a downward adjustment to the LTV, CLTV, or home equity CLTV (HCLTV) based on the location of the property.” Yes, you are reading correctly; no more 5% declining market reduction, at least for Fannie Mae loans! But hold on, let’s not get too excited yet. I’ll explain in a second, but let me give you a brief summary of the Announcement first. Per Fannie Mae Announcement 08-10, dated May 16, 2008:

  1. Fannie Mae withdraws their declining market policy effective 6-1-08;
  2. Declining market policy is replaced by a “National Down Payment’ policy which reduces maximum allowable LTVs for 1-unit primary residences;
  3. 95% is the maximum LTV, CLTV, HCLTV for manually underwritten loans;
  4. 97% is the maximum LTV, CLTV, HCLTV for DU underwritten loans, including MyCommunityMortgages® and Flex mortgages;
  5. CLTV of 105% with Community Seconds® is still allowed;
  6. Effective date is for applications taken on or after June 1, 2008.

Posted by Rachel Anderson on May 20th, 2008 12:52 PMPost a Comment (0)

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Your Piece of Maine Contest
May 20th, 2008 11:15 AM
YOUR PIECE OF MAINE - TWO WEEKS UNTIL CONTEST ENDS: Be sure to submit a video (under 3 minutes) no later than June 2, 2008 to enter MAR's "Your Piece of Maine" contest. A special prize for REALTOR or their family entries is $5,000. Others can earn one of 10 prizes, with a Grand Prize of $20,000. Contest on “You Tube” - for Maine residents to say by video why you love, or want to own “Your Piece of Maine”. Grand Prize is $20,000; Second Prize is $5,000; and eight Third Prizes are $1,000. You can use your cell phone, computer, or video recorder to make a video (less than 3 minutes long). Be fun … be creative … be on time. Go to http://yourpieceofmaine.com for more info. Deadline is June 2, 2008

Posted by Rachel Anderson on May 20th, 2008 11:15 AMPost a Comment (0)

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March Housing Press Release
April 24th, 2008 2:10 PM

Maine Real Estate Sales, Prices Still Cool After Long Winter

SOUTH PORTLAND (April 23, 2008) – Continued cold weather in Maine cooled many single-family real estate sales during the month of March 2008. Prices were down over three percent during the 12-month span and March sales decreased 28.41 percent, according to the Maine Real Estate Information System, Inc.

Across Maine, 650 homes changed hands during March, down from 908 homes sold in March 2007. The median sales price for homes sold was $188,000, a decrease of 3.35 percent from a year ago.

The National Association of Realtors (NAR) reported that nationwide single-family home sales were down 18.4 percent in March. The national median sales price declined 8.3 percent to $198,200. In the regional Northeast, NAR reported a sales decrease of 18.8 percent. However, the median regional sales price rose 4.6 percent to $284,300. 

Below are two charts showing statistics for Maine and its 16 counties. The first chart lists statistics for the month of March only, statewide. The second chart compares the number of existing, single-family homes sold(units) and volume (MSP) during January, February and March of 2007 and 2008.

Maine Real Estate Statistics –March 2008 Housing Report— 4/23/08

MARCH ONLY CHART

From March 1-31, 2007 and March 1-31, 2008

County # Units Sold # Units Sold % MSP MSP %

2007 2008 Change 2007 2008 Change

STATEWIDE 908 650 -28.41% $193,750 $187,250 -3.35%

ROLLING QUARTER CHART

From Jan. 1, 2007 – March 31, 2007 and Jan. 1, 2008 – March 31, 2008

County # Units Sold # Units Sold % MSP MSP %

2007 2008 Change 2007 2008 Change

STATEWIDE 2294 1700 -25.89% $191,600 $188,000 -1.88%

Androscoggin 187 107 -42.78% $160,000 $152,000 -5.00%

Aroostook 53 43 -18.87% $79,900 $88,500 10.76%

Cumberland 597 430 -27.97% $245,000 $239,450 -2.27%

Franklin 54 39 -27.78% $149,500 $174,000 16.39%

Hancock 106 65 -38.68% $223,750 $214,701 -4.04%

Kennebec 207 160 -22.71% $143,900 $140,400 -2.43%

Knox 84 58 -30.95% $230,000 $211,000 -8.26%

Lincoln 67 49 -26.87% $213,000 $227,000 6.57%

Oxford 97 80 -17.53% $150,000 $164,500 9.67%

Penobscot 232 202 -12.93% $137,650 $134,403 -2.36%

Piscataquis 40 20 -50.00% $89,798 $124,000 38.09%

Sagadahoc 64 43 -32.81% $200,000 $179,900 -10.05%

Somerset 65 50 -23.08% $91,500 $81,250 -11.20%

Waldo 63 61 -3.17% $175,000 $170,000 -2.86%

Washington 16 9 -43.75% $117,000 $136,000 16.24%

York 362 284 -21.55% $220,000 $228,950 4.07%

Source: Maine Real Estate Information System, Inc. Note: MREIS, a subsidiary of the Maine Association of REALTORS, is a statewide

 


Posted by Rachel Anderson on April 24th, 2008 2:10 PMPost a Comment (0)

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New FHA, Fannie Mae and Freddie Mac - Government Loan Packages
March 6th, 2008 5:32 PM
The new FHA and Fannie Mae- Freddie Mac conforming loan limits have been released by the U.S. Department of Housing and Urban Development.

        To find out the new limits in your area, simply click on this link:
https://entp.hud.gov/idapp/html/hicostlook.cfm, which will take you to the "mortgage limits" page at the HUD web site. On that page, enter your state and county information, chose the type of loan from the "Limit Type" drop-down box (FHA Forward, Fannie/Freddie or HECM). [Note: FHA Forward is what HUD is calling the temporary FHA loan limit.] Then click the "send" button at the bottom of the page. On the results page, you'll see the new loan limit for the type of loan you selected for your area.

        The new loan limits for FHA and Fannie Mae and Freddie Mac are now calculated at 125 percent of the HUD published median prices, with a floor of $271,050 and $417,000, respectively, not to exceed $729,750.

        We expect the impact of these loan limit increases on the housing market to be significant because of the infusion of capital into the mortgage market, which should result in lower interest rates across the board. In addition, there will be a direct impact on high-cost areas that previously required borrowers to take out costlier jumbo mortgages.

        As NAR research points out, increasing FHA loan limits will help an additional 138,000 Americans achieve the dream of home ownership and will allow nearly 200,000 homeowners to refinance and potentially keep their home. In addition, NAR believes that increasing the loan limits for Fannie Mae and Freddie Mac will bolster the housing finance market, which continues to be severely stressed, by providing an immediate infusion of much needed liquidity to the nation’s mortgage market.

        An economic impact study conducted by NAR in January 2008 estimated that increasing the GSEs’ conforming loan limits would result in as many as 500,000 refinanced loans and could help reduce foreclosures by as much as 210,000. In addition, over 300,000 additional home sales could be generated, housing inventory would be reduced and home prices would be strengthened by two to three percentage points.

        HUD was mandated in the Economic Stimulus Act to publish new loan limits within 30 days of the bill's signing by President Bush on February 13. NAR strongly supported this economic stimulus package because of the relief we felt it would bring our members.

Information provided by National Association of Realtors:Author Dick Gaylord


Posted by Rachel Anderson on March 6th, 2008 5:32 PMPost a Comment (0)

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Pricing Tricks
March 1st, 2008 7:51 PM
Four Pricing Tricks to Help Sell Your Home Faster
By Jonathan Clements From The Wall Street Journal Online

If you're selling a car or a house in today's sluggish economy, make sure the price is right.   Americans are constantly buying stuff. But most of us don't do a whole lot of selling -- which means we don't have much experience at setting prices.

Want to improve your odds of finding a buyer? As you try to unload your car or your home, consider these four pricing tricks.

Is The Price Right?

Take care when setting a price for your home or car.

• Round numbers signal prestige, while precise numbers suggest a bargain.
• Buyers anchor off the first digit, so $3,999 seems far cheaper than $4,000.
• If you cut your asking price, make it easy to calculate the discount.


• Looking slim. We all know that $1.99 is barely less than $2. Yet retailers continue to use this trick -- because there's ample evidence it works.

"When we look at prices, we make judgments in a fraction of a second," explains Manoj Thomas, a marketing professor at Cornell University's Johnson Graduate School of Management. "We read from left to right. We anchor our judgment on the first thing we see."

For instance, if you're trying to sell your old car that you think is worth $8,000, you might set the price at $7,999. Potential buyers will read the seven first -- and have a sense the car is cheaper than it really is.

Alternatively, you might start at $8,222 and then quickly drop the price to $8,111. One study of price comparisons found that, if the left digits are the same, buyers will focus on the right-hand numbers.

At that point, buyers perceive the discount to be larger if those right numbers are declining from, say, two to one rather than from nine to eight. Even though the decline is the same in dollar terms, "people think they're getting a better deal," says one of the study's co-authors, Robin Coulter, a marketing professor at the University of Connecticut.

• Stacking up. As buyers check out your car or your house, they'll have in mind a price they are willing to pay. The good news: You can influence that price.

"You should list higher than you're willing to accept," says Alan Cooke, a marketing professor at the University of Florida's Warrington College of Business. "If you ask a high price, people use that as information in setting their reference price. But there's also evidence that, if you set a price that is implausibly high, the impact will be less than if you set a price that's more reasonable."

In addition, you can affect the reference price of buyers by, for instance, telling them your car's book value or sharing the price of competing properties in the neighborhood. The obvious caveat: Only pass along this information if the comparisons are in your favor.

• Sending messages. Imagine you're selling your house, which you figure might fetch a little under $600,000. A round number, such as $595,000, will convey quality, while a precise number, like $595,385, will indicate a bargain.

The reason: We associate precise numbers with lower-priced goods. A precise number may also signal that you have given a heap of thought to the price and you aren't inclined to negotiate.

Trying to settle on an asking price for your home? "If it's a new development and you're trying to give the impression of prestige, you would want to go for the round number," advises Vicki Morwitz, a marketing professor at New York University's Stern School of Business. "But if you're going for the quick sale and you want to give the impression of a bargain, you would want to go for the precise number."

• Cutting prices. In today's housing market, many homeowners are struggling to find a buyer.

Thinking of dropping your asking price? Suppose that, as in the above example, you initially asked $595,385. If you lower the price to, say, $578,495, potential buyers may perceive the price drop as relatively modest.

"You want to make the computation as easy as possible," Cornell's Prof. Thomas says. "If you use digits that make computation difficult, it will lead to a perception of a small difference."

What to do? You might specify the dollar discount -- or, alternatively, lower the price from $595,385 to maybe $580,385 or $575,385. That way, it will be easy for buyers to calculate the price drop.
-- February 28, 2008

Posted by Rachel Anderson on March 1st, 2008 7:51 PMPost a Comment (0)

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January Home Sales - Press Release
February 25th, 2008 5:50 PM
PRESS RELEASE: In a press release to the Maine media today, MREIS reports single-family real estate sales decreased over 28% during January 2008, compared with January 2007, with a total of 495 homes being sold. Statewide median sales prices for those homes dipped just over 2% to a median sales price of $185,000. The median sales price indicates that half of the homes were sold for more and half sold for less. While prices decreased overall, several Maine Counties experienced double-digit price gains during the month of January. Nationwide, real estate sales were down 22.4% from January 2007. According to NAR, the median existing single-family home price dipped 5.1% to $198,700. The Northeastern United States experienced a 25.7% regional decrease in sales. However, NAR reported that prices rose 3.1% to $270,800 in the past year.

Posted by Rachel Anderson on February 25th, 2008 5:50 PMPost a Comment (0)

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FHA - HUD Economic Stimulus Package passes Senate
February 9th, 2008 11:32 AM

The National Assocaition of Realtors applauds the Economic Stimulus package passed by the U.S. Senate last night which includes important provisions that will temporarily raise the FHA loan limits. NAR developed estimates of the temporary FHA and GSE single-family loan limits based on HUD's existing FHA loan limits. Per the economic stimulus measure, HUD is required to publish the official new temporary loan limits within 30 days of enactment. NAR's figures are estimates, not official figures. GSE limits remain $417,000 in Maine. Maine's estimated FHA increases are :

Androscoggin - from $200,160 to $271,050

Aroostook - from $200,160 to $271,050                         

Cumberland - from $256,025 to $336,875

Franklin - from $200,160 to $271,050

Hancock - from $207,100 to $272,500

Kennebec - from $200,160 to $271,050

Knox - from $200,160 to $271,050

Lincoln - from $241,395 to $317,675

Oxford - from $200,160 to $271,050

Penobscot - from $200,160 to $271,050

Piscataquis - from $200,160 to $271,050

Sagadahoc - from $256,025 to $336,875

Somerset - from $200,160 to $271,050

Waldo - from $200,160 to $271,050

Washington - from $200,160 to $271,050

York - from $256,025 to $336,875


Posted by Rachel Anderson on February 9th, 2008 11:32 AMPost a Comment (0)

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The Market is Changing - Buy Smart
February 3rd, 2008 2:12 PM

Change, Change, every where in central Maine the market is changing.  It is not anything like what you see on the national media, but here are a few ways to invest wisely in your next home. 

1. Stay in touch with the market and your Realtor.  It does sound like common sense, but not always done correctly.  Tell your agent you want a home in a desirable location, so know the neighborhoods.   The best neighborhoods hold value, turn over quickly, and remain popular - even in a down market.  My number one rule with a buyer - Location & Communication!

2. Purchase property that you can afford.  Do not over spend on a property with the mind set that if you can't afford it next year, it can be sold at a profit.  The soft market will last another 16 -24 months.  A smart investment at this time is a home you can hold onto for 5 years to build equity.

3. Make sure your credit is in good condition - and do not make any additional large purchase during the purchase or sale that will change your score.

4. Test the market by being a strong negotiator - and make sure your agent is known to be one too.  Take your time and plan to negotiate by making several offers.  Always ask for a better price, better terms, and offer a lower down payment for financing.


Posted by Rachel Anderson on February 3rd, 2008 2:12 PMPost a Comment (0)

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If Sales are down, Why not the average sale price
January 12th, 2008 1:05 PM

MAINE REAL ESTATE MEDIAN PRICES UP 1.62 IN NOVEMBER; SALES DOWN OVER 10 PERCENT

SOUTH PORTLAND (December 31, 2007) – Median sales prices for single-family existing homes in Maine edged upward last month while sales of those homes were down over 10 percent. According to the Maine Real Estate Information System, Inc., 891 homes sold during the month of November 2007, a decrease of 10.63 percent from November 2006.  Median prices, however, rose 1.62 percent. Maine’s median existing single-family home price reached $188,000 last month, up from $185,000 last year. The median sales price indicates that half of the homes were sold for more and half sold for less.

The National Association of Realtors (NAR) today reports that across the country, singlefamily home sales decreased 19.9 percent in the past 12 months. The national median existing sales price dipped 3.7 percent to $208,700.  Regionally, sales in the Northeastern United States mirrored national statistics with a 19.4 percent drop in sales. NAR said prices are also down regionally: The median sales price in the Northeast decreased 3.2 percent to $258,300.

The winter season has ushered in positive sales for some resort areas. Below are two charts showing statistics for Maine and its 16 counties. The first chart lists statistics for the month of November only, statewide. The second chart compares the number of existing, single-family homes sold (units) and volume (MSP) during the months ofSeptember, October and November of 2006 and 2007.

NOVEMBER ONLY CHART

Comparing Nov. 1-30, 2006 and Nov. 1-30, 2007

County # Units Sold # Units Sold % MSP MSP % Change    2006    2007     Change        2006          2007

STATEWIDE 997 891 -10.63% $185,000 $188,000 1.62%

ROLLING QUARTER CHART

From September 1 - November 30, 2006 & From September 1 - November 30, 2007

County # Units Sold # Units Sold % MSP MSP % Change  2006  2007     Change    2006           2007

STATEWIDE 3408 2960 -13.15% $190,000 $189,000 -0.53%

Androscoggin 271 195 -28.04% $156,500 $155,560 -0.60%

Aroostook 130 115 -11.54% $77,200 $88,500 14.64%

Cumberland 760 642 -15.53% $258,500 $249,950 -3.31%

Franklin 95 79 -16.84% $127,500 $130,000 1.96%

Hancock 157 155 -1.27% $214,000 $211,000 -1.40%

Kennebec 332 267 -19.58% $145,000 $155,000 6.90%

Knox 114 102 -10.53% $200,000 $206,531 3.27%

Lincoln 108 94 -12.96% $271,000 $240,000 -11.44%

Oxford 159 162 1.89% $152,500 $142,984 -6.24%

Penobscot 350 317 -9.43% $139,000 $130,000 -6.47%

Piscataquis 77 52 -32.47% $118,000 $125,100 6.02%

Sagadahoc 77 94 22.08% $189,900 $189,000 -0.47%

Somerset 101 94 -6.93% $110,000 $117,500 6.82%

Waldo 104 114 9.62% $162,250 $193,500 19.26%

Washington 20 10 -50.00% $74,388 $193,000 159.45%

York 553 468 -15.37% $245,000 $235,950 -3.69%

Source: Maine Real Estate Information System, Inc. Note: MREIS, a subsidiary of the Maine Association of REALTORS,


Posted by Rachel Anderson on January 12th, 2008 1:05 PMPost a Comment (0)

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Politics & Government Loans - Contact your Senator
November 29th, 2007 6:25 PM

What's At Stake?  FHA Reform and Increased GSE Limits

Talking Points FHA Reform S. 2338

  • FHA loans are limited in many areas of the country by mortgage limits that are too low
  • Low FHA loan limits helped steer many borrowers into “specialty” mortgages contributing to the foreclosure and mortgage crisis we face today.
  • S. 2338 will reduce the required 3 percent minimum downpayment to 1.5 percent, and provide FHA with the flexibility to offer varying downpayment terms to different types of borrowers.
  • S. 2338 will also increase the FHA high cost loan limit from $362,790 to the 2007 conforming loan limit of $417,000.
  • In non-high cost areas, the FHA limit would increase from $200,160 to $271,050 for single unit homes.

Talking Points Freddie Mac/Fannie Mae (GSE) Loan Limits

  • Freddie Mac/Fannie Mae conforming loans are not readily available to homebuyers in the nation’s high cost metropolitan markets.
  • The 2007 Freddie Mac/Fannie Mae loan limit cap of $417,000 is well above the national median sales price of $220,800 for single family homes and exceeds the local median in most housing markets, BUT it is consistently well below the local median in high cost areas.
  • Increasing the Freddie Mac/Fannie Mae loan limits will also help inject more mortgage money into the market.
  • Increasing the loan limits will help boost the national homeownership rate.


NAR Policy

NAR supports legislation to modernize the FHA single-family mortgage insurance program and make FHA loans an available financing option once again. Had FHA loans been a viable product in the recent past, many families would not have fallen prey to the risky sub-prime mortgages causing record numbers of defaults and foreclosures. The specific reforms proposed include: increased FHA mortgage limits nationwide and in high cost areas and lower FHA downpayment requirements.

NAR also supports efforts to increase the Fannie Mae and Freddie Mac (GSE) loan limits to make homebuying more affordable in the nation’s highest cost areas. Allowing regional adjustments to the conforming loan limits is a matter of simple equity for the families residing in high cost metropolitan areas.

Status in Congress for FHA

S. 2338 the “Building American Homeownership Act of 2007” is pending on the Senate Floor. The House has already passed an FHA reform bill, H.R. 1852.

Status in Congress for Freddie Mac/Fannie Mae (GSE) Loan Limits

H.R. 1427 (GSE Reform) and S. 2036 both include provisions to increase the conforming loan limits in high cost areas, but have yet to be considered by the Senate Banking Committee. Increased loan limit provisions included in H.R. 1427 (GSE Reform) have already been approved by the House.


Posted by Rachel Anderson on November 29th, 2007 6:25 PMPost a Comment (0)

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October Sales in Maine
November 29th, 2007 6:02 PM

MAINE PROPERTY: MEDIAN PRICES DIP 1.95 % IN OCTOBER; SALES DOWN 12.23 %

SOUTH PORTLAND (November 29, 2007) -- Sales of Maine real estate continued to drop in October 2007, while prices for single-family, existing homes dipped a slight 1.95 percent.  According to the Maine Real Estate Information System, Inc., Realtors reported 1,041 sales across Maine last month. This is down 12.23 percent compared to 1,186 sales during the month of October 2006.

The median sales price for a single-family existing home was $188,500 in October, down slightly from $192,250 one year ago. The median sales price indicates that half of the homes were sold for more and half sold for less.

The National Association of Realtors (NAR) today reported that national sales of singlefamily existing homes dropped 20.8 percent in October. The national median existing singlefamily home price decreased 6.3 percent in one year to $205,700.

In the regional Northeast, sales were down 12.6 percent. However, NAR said the regional median sales price rose 1.3 percent in October to $258,700.

Buyers want to know: Is this the time to buy?  YES - BUY IT RIGHT!

Below are two charts showing statistics for Maine and its 16 counties. The first chart lists statistics for the month of October only, statewide. The second chart compares the number of existing, single-family homes sold (units) and volume (MSP) during the months of August, September and October of 2006 and 2007.

Maine Real Estate Statistics –October 2007 Housing Report—11/29/07

OCTOBER ONLY CHART

From October 1-31, 2006 and October 1-31, 2007

County # Units Sold # Units Sold % MSP MSP %

2006 2007 Change 2006 2007 Change

STATEWIDE 1186 1041 -12.23% $192,250 $188,500 -1.95%

ROLLING QUARTER CHART

From August 1, 2006 - October 31, 2006 and August 1, 2007 - October 31, 2007

County # Units Sold # Units Sold % MSP MSP %

2006 2007 Change 2006 2007 Change

STATEWIDE 3746 3494 -6.73% $194,000 $191,200 -1.44%

Androscoggin 297 230 -22.56% $160,000 $162,650 1.66%

Aroostook 124 115 -7.26% $84,725 $80,000 -5.58%

Cumberland 850 792 -6.82% $255,000 $254,943 -0.02%

Franklin 101 104 2.97% $130,000 $141,000 8.46%

Hancock 164 160 -2.44% $197,500 $200,000 1.27%

Kennebec 371 311 -16.17% $144,900 $155,000 6.97%

Knox 121 140 15.70% $214,000 $204,031 -4.66%

Lincoln 130 130 0.00% $270,950 $237,500 -12.35%

Oxford 198 170 -14.14% $157,000 $143,750 -8.44%

Penobscot 388 373 -3.87% $142,600 $140,000 -1.82%

Piscataquis 74 68 -8.11% $120,000 $128,500 7.08%

Sagadahoc 96 107 11.46% $200,000 $189,000 -5.50%

Somerset 112 106 -5.36% $110,850 $120,000 8.25%

Waldo 117 124 5.98% $165,000 $204,250 23.79%

Washington 19 14 -26.32% $92,500 $110,000 18.92%

York 584 550 -5.82% $240,000 $239,950 -0.02%

Source: Maine Real Estate Information System, Inc. Note: MREIS, a subsidiary of the Maine Association of REALTORS, is astatewide Multiple Listing Service with over 5,800 licensees inputting active and sold property listing data. Statistics reflect properties reported as sold in the System within the time periods indicated.


Posted by Rachel Anderson on November 29th, 2007 6:02 PMPost a Comment (0)

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September Sales Decrease in Maine
October 24th, 2007 4:28 PM

STATEWIDE REAL ESTATE SALES DOWN 16 PERCENT IN SEPTEMBER;