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V O L . X X I I I N O. X V J U LY 1 0 , 2 0 1 7 18 S O U T H E R N M A I N E F O C U S "In the foreseeable future, I don't see anything that's going to make it change," he says. "Interest rates are creeping up a touch, but it's not enough to turn anyone off . It's still hovering at 4% or just above. at's darn good." Some sellers are having a hard time moving up, says Brunette. "[In the past] the normal progres- sion was, I might have sold someone their fi rst home, they fi xed it up, the family grew, they changed jobs and then they're looking for something bigger and better six or seven years later. So they put their house on the market, and when their house went under contract, there was a big inven- tory and they could immediately fi nd a home," Brunette says. " e problem we have now is that, when people put their house on the market, there's not a lot of inventory out there and there's nothing to move to," he says. "It's causing some heartache." Low inventory e struggle to nail down an exist- ing home is driving new construction, Realtors and developers agree. "I have two couples I've been working with," says Brunette. "For about three weeks they were looking in the Wells area for something in the mid-$300,000s to lower $400,000s. Both couples had a hard time fi nding anything and both are interested now in having a home built." "Right now, we can't build fast enough," says Bob Georgitis, vice presi- dent and project manager for Kasprzak Builders in North Waterboro. e fi rm, which builds 32 to 36 mid-income condo units per year, in the mid-$300,000 to mid-$400,000 range, currently has enough construction work for nearly a year, he says. A 56-unit condominium complex in Wells, Heron Landing at Riverbend Woods, was most recently completed. "Most people buying our condo- miniums are retirees or are getting ready to retire," says Georgitis. "About 50% are from out-of-state and the others are people pretty much from southern Maine — they're downsiz- ing and up-scaling from their big houses into condominiums, looking to get away from maintenance issues like shoveling snow and mowing the grass. at's what condo buying is all about." " ree years ago, I didn't know where my next job was coming from. Now it's a feast," agrees Biddeford developer Doug Sanford, adding, "Every excavator and construction guy I know is very busy." Sanford is the owner/developer of the 1 million-square-foot Pepperell Mill in Biddeford, now home to 120 businesses and 100 market-rate rental apartments in the moderate to high- income range. Occupancy is 100%. He plans to develop another 80 units once fi nancing is secured. "[Tenants] might want to be in Portland, but Portland's too expen- sive, so they're looking at Saco and Biddeford," Sanford says. Labor shortage Predictably, contractors say a shortage of workers is tempering growth. "It's across all the trades — plumbers, carpenters, framers," says Georgitis. "We build year-round, and there are not many guys who want to be outside when it's 10 above, banging nails. But to provide these products, you've got to build year-round." Georgitis off ers an example of the shortage. On a recent June day, at the company's three job sites, 40 to 50 people are employed by Kasprzak's sub-contractors, working on condos in various stages of construction, from digging holes for the foundation, to framing, sheetrocking, wiring and plumbing. All together, he estimates the crews could use 10 more people. " e building's framing crew man- power is short-staff ed by 25% to 30% and other trades by 10% to 20%," he says. Sanford says the shortage results in an extended construction timeframe. "For the 80 residential units, we could use a lot more workers," he says. "Instead of telling tenants, 'I can get you in, in six months,' I'd be able to tell them two months." Paul Schumacher, executive direc- tor of the Southern Maine Planning and Development Commission, said before the recession he had two to three people reviewing projects. "After the crash, we had hardly anyone doing that," Schumacher says. "But in the last couple of years, it's picked up dramatically. We get a lot more requests from a lot more towns for assistance as far as review- ing development proposals. And it's wide-ranging: It's not just the coastal towns. Within the last six to nine months in towns like South Berwick, Waterboro, Hollis and Parsonsfi eld, we were helping planning boards with six to seven subdivisions totaling about 150 lots." On the plus side, the boom is creat- ing jobs and housing in a diverse range to attract more people to the region. " e downside is that there is a fear that additional development means more children, increased school costs, loss of open space and in a general sense, loss of quality of life," he says. But, he adds, "If development occurs in a 'smart' way, all of this can be managed and balanced. at would be the best of all outcomes." L S , M a i n e b i z s t a f f writer, can be reached at @ . a n d @ M R E I » C O N T I N U E D F RO M P R E V I O U S PA G E Maine York County $0 $50K $100K $150K $200K $250K $300K 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 Maine York County 0 5,000 10,000 15,000 20,000 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 S O U R C E : Maine Association of Realtors MEDIAN SALES PRICE NUMBER OF SALES

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