This was a very promising year for real
estate. It was a year of growth as the number of houses sold this year compared
to last year is almost eight percent higher. The median sale price for homes in
Maine also rose 5 to 7 percent, and in Cumberland County for June, July, and
August the median price was up almost 10 percent over the same period in 2015. New
construction also took off this year and is showing no signs of slowing down
over the winter.
Buyer's confidence in the real estate
market's continued growth coming out of 2015 played a big part in the overall
success that the market had throughout the year. Low interest rates and
slightly lighter restrictions from lenders also played a large role. Buyer's
had more purchasing power, especially with programs like the Maine State
Housing First Time Homebuyer Program with interest rates at 2.9 percent at
times.
Right now inventory is low for single
family homes and the pool of buyers out there is still growing. If you pulled
your house off the market because you think not many buyers want to purchase
property in the winter, one could argue you are mistaken. People who are not
serious about buying stop looking, but the buyers who are serious and need to
purchase a home are out there no matter how deep the snow gets. So you may want
to reconsider if you were one of the many who took your house off the market.
2017 looks to be another promising year
of market growth and rise in pricing. We certainly have not gained back what we
lost in 2007 and 2008, but we have gained some and will continue to do so over
the upcoming years. A slight rise in interest rate will affect some buyer's
purchasing power, but it won't slow the rise in home values very much. The
demand is there and lenders will likely expand the debt to income ratio
slightly with buyers who have exceptionally good credit.
Thinking of buying a home but not sure
if you should wait till spring to start looking? Now is the time to get in the
game as prices will continue to rise throughout the next few years. There is
less competition from other buyers right now, so you hopefully won't get into a
bidding war. Also, sellers who have their homes on the market are serious about
selling their homes and are generally open to reasonable negotiations. This
means that if you make a reasonable offer you will likely have a deal.
Need another reason to buy now and not
later, how about the likelihood of another interest rate hike. Many strategists
feel that it is inevitable that another rate increase by the Federal Reserve is
going to happen, and more than likely to happen sooner than later. The tax
benefits of home ownership are another reason to get in the game now. Most all
home improvements are tax deductible and the interest is also a great
deduction. One more great reason to buy is that it is probably still cheaper
than renting since rental rates have also climbed over the last few years.
Either way, buying or selling, I highly
recommend you contact a local real estate professional that has experience and
knowledge. Interview several Realtors, find one that you feel comfortable with
and that listens to your needs and desires. They are going to be working both
for you and with you, and looking out for your best interests. Having a
professional with knowledge, experience, and creative negotiating skills will
make the whole process smoother and get you to your goals quicker.
Five Star Realty wishes you all a Happy
and Safe New Year! ~ Article by Matthew Trudel, Owner Five Star Realty, Windham
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