The beginning of the end of the Maine hot housing market may not be in Augusta or Portland but in Washington, D.C.
Last week, the Federal Reserve raised the highest interest rate they had in 40 years in an effort to combat inflation. Chairman Jerome Powell said Wednesday that Americans should expect more travel.
Referring to the situation so far during the epidemic as the “extremist market,” Dava Davin, owner of Portside Real Estate Group based in Falmouth, one of the largest state-owned enterprises, said to there are indications that it is going to change due to the Fed’s. migration, rising inflation, declining stock markets and other factors.
“People’s purchasing power has changed, and it also means that they have paused for a moment,” Davin said. “That sense of urgency does not exist.”
Here are some of the key market topics that Davin touched on during an interview with Bangor Daily News.
A decline in offers
Davin says he sees homes continue to sell faster, but now they are moving at lower rates. Although the Portland home would have had 20 cents a few months ago, it has recently seen only two receivers. It was being sold for $ 60,000 at its desired price.
“We see signs of this slow change,” he said. To see also : What AAA predicts for July 4th Holiday Travel.
Houses are moving fast. The family unit of Washington Avenue in Portland that sold for $ 510,000 this week was listed Monday and sold Tuesday to a medical assistant at Maine Medical Center. Redfin reported 107 sales of single-family families from Monday to Thursday in Maine from Thursday afternoon. The median price was $ 345,000.
The most expensive house was a $ 2.52 million four-bedroom house on Sprucehead Island in Thomaston that sold 25 days after the listing. Very low price: three bedroom Guilford for $ 50,000 after being on the market for more than 250 days.
The ascent must descend. Like other markets, the real estate market has a natural progression to some extent. See the article : After COVID, South Korean youth investors exchanged professional shares. Many Maine people have already bought the houses they wanted to buy, Davin said. Some seem to go backwards.
“We have fewer customers,” Davin said. But it is still enough to have a strong market.
Why Maine is so desirable
There are many well-documented facts about why Maine has become so desirable, such as the transition to remote work since the beginning of the COVID-19 epidemic as well as the proliferation of rural population from at that time. To see also : Singapore imports more than 90% of its food. Here’s how it handles rising food inflation.
When asked why Americans would choose to live in any state of the country they would choose Maine, Davin noted that many want to be closer to the water. There is ample access to what Maine is either at sea or in lakes.
The Portland metro area has also begun to gain international recognition, he said. To say he came from there he did not get an answer at real estate conferences. Now the people tell him that they are planning a trip.
“Portland is cool, and everyone knows it,” Davin said.
He also spoke to people who wanted to come to Maine to escape the devastating effects of climate change in some areas, including California, where some schools had to cancel after-school games due to wind he is evil.
“If you’re in it every day, and you have the option to move, it becomes part of that,” Davin said.
Davin stressed that the market is still strong, with high demand and high prices despite the recent decline. Some drops come quickly, including just one week after the list is posted.
“It’s a sign that there’s a ceiling in what people will pay,” Davin said. “They don’t really care about prices anymore.”
The demand seen in the Maine real estate market is compounded by the strong foreign interest profits in Maine housing. That number had gone from 26 percent of buyers in 2020 to 33 percent in 2022, according to data collected by Portside on the homes he sold. That number was 37 percent in 2021.
Davin says Portside sold the Brunswick house twice in February for $ 605,000 and in May for $ 680,000 to overseas buyers. Twice, the customers did not move. It is currently on sale for $ 680,000. It is an exaggeration, but he expects some overseas customers not to stay in Maine for long.
“We will keep the big ones who believe in our district and want to stay,” Davin said.
Will US home prices drop in 2022?
That said, the cool real estate market has seen the potential for a sharp decline in home prices. At least at the regional level. Between April 2022 and April 2023, CoreLogic predicts U.S. domestic prices. are on the verge of rising again by 5.9%.
Will house prices fall in the USA 2022? Fannie Mae predicts that prices will rise in 2022 by 10.8%, but they also predict a major recovery by 2023, and prices will rise by 3.2%.
Will 2022 prices go down?
For the record, the latest PCE Price Index data shows that the annual inflation rate is 6.3% since April 2022. But in the second quarter Morningstar â € œU.S. An Economic Vision, â € researchers predict that 2022 will have the highest inflation rate, as measured by the PCE Price Index, at 5.2%, before falling.
Will there be more houses on the market in 2022?
Will Housing Market Prices Rise in 2022? As we have said, there is no possibility that domestic prices will fall soon – especially not by 2022. Some experts expect that domestic prices will grow at a faster rate (6%) than we have seen. soon. But some expect growth to continue at the same pace as last year (16%).
Will house prices go down in 2023 us?
To strengthen the equity of the real estate market, housing prices will need to fall – and that means more housing will need to be built by 2023. “Market cooling is needed to restore supply and demand balance, “Kefer said. “The rate of growth in housing prices over the past two years does not last long.”
Will the housing market crash in 2024?
It may take some time before existing furniture meets the requirement. Experts surveyed by Zillow predict that it will take two years before the monthly list returns to pre-epidemic trends. They estimate it will be 2024 or 2025 before the first customer share reaches 45% seen in 2019.
Will there be a housing bubble in 2022? Many economists believe that a real estate market crisis or collapse will not happen by 2021 or 2022. According to some industry experts, the most likely scenario is that real estate prices will begin to rise gradually in the coming months.
What will housing look like in 2024?
Zillow said 38% of respondents expected the list to return to an average of 1.5 million units or more by 2024, while 36% said supply would return to pre-epidemic levels by 2023, and 12% said it would be by 2025.
Will houses be cheaper in 2030?
According to RenoFi, the average price for a single-family home in the United States could reach $ 382,000 by 2030. Depending on where you live, this figure may seem like a drop in the bucket. compared to the price of home in your community.
Will house prices go down in 2023 USA?
Next year, CoreLogic predicts that home prices are set to decline to a 5% growth rate. The Mortgage Bankers Association says house prices are projected to rise by 4.8% over the next 12 months, with Fannie Mae predicting home prices to increase by 11.2% this year, and 4.2% by 2023.
Will house prices go down in florida 2022?
Overall, the Florida housing market is still very hot and is expected to remain the same throughout 2022. This is good if you are a seller because it means that home prices are going up and there is no has a lot of marketing competition – so you get the luxury of choosing from the best deals on your timeline.
Is real estate a good investment by 2022? The National Vendors Association predicts that the employment rate will be even stronger at 4.8% by 2022 (5.1% by 2021) and rent growth to 10% (7.8% by 2021). One of the key factors in the rise of the rental market is the Covid-based home-based approach.
Will house prices go up in 2022?
“We now expect a 9 percent drop in national housing prices beyond 2022 and a further collapse in early 2023.” The bank expects a 12 percent drop in house prices, but says that if it is adjusted, the market will see a 20 percent correction.
Will house prices drop in 2022?
Based on these data, Capital Economics predicts that housing prices will rise by 2022, before falling by 5% by 2023.
Why is Maine real estate so expensive?
The cost of building materials has increased. “We have a lot of wood in Maine, but the building materials can be transported across the country,” Cole recalls. “When you have a high demand for the world, that raises the bar.” Cole points to frequent property damage from natural disasters such as wildfires and floods.
Is Maine housing sales declining? Maine Listings says the number of March homes sold has dropped from 1,313 units last year to 1,031 this year, a decrease of about 21.5 percent. The average national sales price rose from $ 268,500 last year to $ 325,000 in March this year, an increase of 21 percent.
Are home prices dropping in Maine?
Domestic prices are high, but sales by 2022 are expected to fall by about 9 percent, largely due to the strong retail market, said Lawrence Yun, a leading economist at the National Traders Association. .
Why are homes in Maine so expensive?
Elections. Maine is also on the expensive side of taxes. The effective national and local tax rate is 11.81%, which is 9.33% higher than the national average. Employees spend as much as $ 6,792 a year to pay taxes, and $ 2,585 levies property taxes.
Will the housing market crash in Maine?
Lower prices, lower real estate and rising mortgage prices are expected to slow the Maine hot market and across the U.S., a national economist has warned. The Federal Reserve raised a half-year interest rate on Wednesday to reduce inflation.