Mainebiz

V O L . X X V I I I N O. I X M AY 2 , 2 0 2 2 16 R E A L E S TAT E / C O N S T R U C T I O N / E N G I N E E R I N G F O C U S Single-family market is a wild ride B y L a u r i e S c h r e i b e r Crazy. Wild. at's how brokers are characterizing today's single-family resi- dential market throughout Maine. "It's been a strong sellers' market," says Dava Davin, owner of Falmouth-based Portside Real Estate Group, which has seven offices stretching from Brunswick south to Portsmouth, N.H. Buyers are offering cash, foregoing appraisals and inspections, and sometimes buying sight unseen. Listings attract doz- ens of viewers and multiple bids. is was the case throughout 2021. Even though sales volume was down 21.48% in March versus a year ago, according to Maine Listings, the median sales price rose 21%. e time a house spent on the market shrank from 11 days to nine. As recently as March 2019, a house was on the market an average of 70 days. Bidding wars How wild are the offers? In Brunswick, a 1,100-square-foot, three-bedroom condominium was listed for $265,000 and sold for $366,000, in cash. A South Portland home listed for $389,900 and closed at $550,000. "Every day we just shake our heads," says Davin. Bidding wars and crowded open houses are the norm. "Having traffic jams caused by open houses is normal," says Davin. "A dozen to 25 offers is normal." e phenomenon is occurring across Maine, as out-of-state buyers surge into the market. "It's across the board — every price point and statewide," she says. "It's not the super-hot towns that we used to talk about. It's every town, every property." Buyers are getting creative. For example, allowing sellers to stay in the property, often at no charge, until they find their next home. Inventory nowhere near pre- pandemic levels After seven months of declining inventory, in March there was a 5.2% increase in single-family listings from the prior month. P H O T O / T I M G R E E N WAY Dava Davin of Portside Real Estate Group says buyers are offering cash, foregoing appraisals and inspections, and sometimes buying sight unseen. S O U R C E : Chris Lynch, Legacy Properties Sotheby's International Realty 1 All data is pulled from Maine Multiple Listing Service on 4/13/2022 MARKET SHARE CHANGE BY DOLLAR VOLUME: 2019 TO 2021 (ALL PRICES) SINGLE-FAMILY AND CONDOS Q1 2022 (1/1/2022 THROUGH 3/31/2022) 1 All of Maine 1% over asking price on average 63% sold at or over asking price 15% sold at 10% or more over asking price 4% sold at 20% or more over asking price $305,000 median price York, Cumberland Counties 4% over asking price on average 76% sold at or over asking price 24% sold at 10% or more over asking price 7% sold at 20% or more over asking price $429,950 median price CA CT DC Metro FL PA NJ TX MA NY NH ME 58% 35% 31% 24% 20% 19% 19% 18% 17% 12% −13% –20% 0% 20% 40% 60% This chart shows that, on a dollar volume basis from 2019 to 2021, the participation of California and other states in Maine's residential real estate market has soared as high as 58%, while participation of Maine buyers has declined 13%. In other words, the number of Maine buyers buying Maine real estate in shrinking relative to out-of-state buyers. HOUSING CRUNCH Maine's growing Cash buyers, short-term rentals and rising home prices are shutting Mainers out

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