Mainebiz

w w w. m a i n e b i z . b i z 19 F e b r ua r y 9 , 2 0 1 5 homes for Boston-area professionals who are in the top 5% of wage earners and have plenty of dispos- able income. As market prices receded in 2008 and 2009, the lower prices brought in buyers who had money to invest. While business has been steady for Rocheleau, he notes that 20 minutes inland the construction market is not as good. "What I see and what I feel in the market are separate," says Rocheleau. Overall, the median sales price for homes in York County in 2013 was $220,000. at dropped slightly to $215,000 in 2014. e statewide home sales price from 2013 to 2014 was flat at $175,000. e market for waterfront and vacation homes is often vastly different from much of the state's inventory of home listings. e upper tier in waterfront real estate is seen in Kennebunk, where the market for million- dollar homes was buzzing in January. A home on Goose Rocks Beach set a sales record for that area at $3.07 million, and a house on Kennebunk Beach sold for $4.4 million, the third-highest home price in York County, according to records kept by MLS, the Maine Real Estate Information System. Both homes were sold by Bill Gaynor of Legacy Properties Sotheby's International in Kennebunk. ere are approximately 500 houses on the mar- ket in Maine for over $1 million, and roughly 125 to 130 will sell per year, says Gaynor. "Maine is still remarkably inexpensive" when compared to similar waterfront real-estate markets on Nantucket, Mass., and eastern Long Island, N.Y., where sales of $10 million to $20 million homes are not uncommon. While the multimillion-dollar houses in York County are seeing activity, sales are forecast to increase in the over-$900,000 market and under- $400,000 listings, says Maureen Adams Weaver, another real estate agent at Sotheby's. Weaver projects the mood of homebuyers will be increasingly optimistic in 2015, and has recently witnessed some interesting home-buying scenarios. "ere have been increasing multiple offer situa- tions and 'over-asking price' situations on properties that are priced correctly," says Weaver. Sales in the middle market will be slower, Weaver cautions, even with low interest rates. New construction could be prompted by the relatively tight inventory of houses and consumers' desire for energy-efficient homes, she adds. Gorham Savings Bank has had heavy pre-approval activity at its Kennebunk branch, with consum- ers actively looking at land and properties, says Eric Andrews, chief banking officer. Interest rates for construction loans that convert to mortgages upon completion in mid-January were in the low 4% range, "at's pretty good for a one-closing product," says Andrews. Gorham Savings has had a 48% increase in dollar volume for its residential loan portfolio from January 2014 to January 2015. More real estate sales means more business for related businesses, including surveyors Livingston- Hughes, a 20-year-old firm in Kennebunkport. e surveyor's mortgage inspections have been very strong, says Tracy Hughes, co-owner with husband, David Hughes. eir business will take a deed supplied by a bank and apply it to the property monuments to ensure everything is correct, including setbacks and town building codes. Complying with town codes and waterfront setbacks is an important aspect of the construction business, notes Hughes. New construction-related projects increased 168% for their business from 2013 to 2014, she says. e surveying firm stakes out where the footprint of a build- ing should be, which is critical for waterfront homes. "e construction industry isn't necessarily up that much, but builders are being a lot more cautious about what they're doing," she says. "You put a lot of money into building a house, and to then find out there is a huge mistake? It's just smart to have some- one have a look [at the setbacks]." Weaver predicts much of the future construction, at least in York County, will move inland as the FEMA flood zones begin to limit waterfront construction. Fi o na R o b i n s o n , a w r i t e r b a s e d i n Yo r k C o u n t y , c a n b e r e a c h e d a t e d i t o r i a l @ m a i n e b i z . b i z F uel prices have declined, but builders say that doesn't necessarily translate into lower prices for construction materials. Sky-high petroleum prices in past years also drove up the prices for asphalt shingles, tarp paper and any other material that was petroleum based, says Kennebunkport builder Terry Philbrick. While lower fuel prices and interest rates as of late may spark building among consumers, Philbrick doesn't expect those savings will be passed down the material supply chain. "I don't see material prices dropping with fuel. I think [fuel prices] will go back up and will be sky high. It will eventually, it's just a matter of when," he says. Despite the higher costs, consumers have been more willing to invest in new technology and materi- als that reduce their costs in the future, including Lower fuel prices not dropping the cost of building materials appliances, solar panels, composite woods, gas-fired HVAC systems and energy-efficient windows. "People are willing to spend more on some extras when they're doing a remodel or building a house, period," says Philbrick. Custom home builder Pat Rocheleau has been using composite woods like Azek, Trex and Versatex since 2007 on projects he has in the York area. His custom- ers enjoying the labor- and cost-savings down the road. "It looks just like wood, is tooled and installed like wood, but doesn't rot like wood," says Rocheleau. "The homeowner isn't constantly painting their house every five years. It costs a little more, but down the road it holds up well." Composite woods can cost approximately 30% more than traditional woods, adds Rocheleau, but the customer recoups the costs in maintenance savings in the future. 207-358-7900 | www.milkstreetcapital.biz | 84 Middle Street, Portland • Non-conforming real estate financing • Rehab/construction • Real estate bridge loans • Distressed real estate • Quick closings • Commercial acquisitions • Cash out refinance Milk Street Capital llc Providing solutions for diverse hiring needs for Maine companies Call us today! Direct Personnel / Project Staffing / Project Flagging 207-854-2422 directpersonnel.net 800-639-8802 mainestaff.com • Finance/ accounting professionals • Skilled laborers • Flaggers • Administrative experts • Health Care professionals • Engineers

• Cover