Real Estate: Preparing for the hottest winter market ever recorded

By Nicole Foster, Broker/ REALTOR

The Maine Association of REALTORS Nov. 19, 2020 press release reported a statewide jump in sales of 26.88 percent from October 2019 to October 2020 and the median sale price climbed 24.5 percent during that time.

All indications are this could be one of the strongest winter markets on record here in Maine, even with the pandemic continuing to surge. There is a possibility for an increase in foreclosures in 2021 with the end of any pandemic related forbearance programs and moratoriums; however, the inventory is so short that these properties will likely be absorbed quickly, having little negative impact on property values.

Homeowners are predicted to continue gain housing wealth through equity at the same pace. What do these forecasts mean for buyers and sellers? Whether you are considering purchasing an investment property, selling your current home or planning to purchase your first property be sure to work with an experienced REALTOR.

Buyers

It is going to take much more than patience and persistence to get the home you want in the current
market conditions. Listen to your buyer agent’s advice and allow their leverage to help you be successful by building a team of professionals and to develop a solid offering strategy. Be sure to let your buyer agent know of any For Sale By Owner properties that you would like to see as well. Between October 2019 and October 2020, the number of buyers coming from out of the state grew at least 11 percent and that number is expected to climb, so buyers will now be competing in a larger pool than in previous years.

Sellers

Right now, many sellers are really feeling caught between the media hype, which is absolutely true and mind boggling to witness, and their current assessed value (which is not market value).  Is the sky the limit with pricing these days? Is it true what you’ve heard about homes essentially “selling themselves”? Even in the hottest market ever we are still seeing price reductions and properties not appraising for the agreed purchase price every single day. An experienced REALTOR will help you to take the necessary steps to position your property where it needs to be to reach your selling objectives in the timeframe you want. It is absolutely a unique time for sellers who have gained a significant amount of negotiating power if used properly and we are seeing fewer seller concessions than we are used to.

Everyone has been closely watching mortgage interest rates, as their record low pricing is one of the key ingredients for what we are currently experiencing. Housing affordability could become a greater issue when rates do increase, but many are expecting rates to remain low into 2021.

Nicole Foster is a real estate broker with Locations Real Estate Group in Falmouth and a Windham parent and resident who has been helping buyers and sellers since 2006. <