October 16, 2024
Business

Winter home sales jump 18 percent from a year ago Mild weather, low interest rates cited

PORTLAND – Home sales in Maine jumped 18 percent this winter thanks to mild weather, low interest rates and the willingness of lenders, brokers said.

Real estate agents sold 2,256 homes from December through February, up from 1,914 during the same period last year, according to the Maine Real Estate Information System.

February sales alone soared 41 percent.

“I think the signs have become clearer that the economy is starting to recover,” said Jim Fitzgerald, president of the multiple listing service and an agent with Coldwell Banker Harnden Beecher in Kennebunkport. “But I think the biggest factor is that interest rates are staying down. And there’s plenty of money out there. Nobody’s saying no to anybody.”

Sales for the three-month period were up over last year in every county except Washington and Knox. Only six homes were sold in Washington County during the time frame, compared to seven last year. Seventy-nine homes were reported sold in Knox compared to 83 a year ago.

Aroostook County registered the largest percentage change in sales with a 77 percent increase, but that figure is deceptive since only 23 homes were sold, compared to 13 a year ago.

The median sale price for an existing, single-family home statewide increased 5.6 percent to $125,000 from $118,375 a year earlier. The average price for the 211 homes sold in Penobscot County in December, January and February increased from $78,250 last year to $87,000.

“Buyers from all economic levels are in the market looking for homes,” said Will Rogers of Realty Executives in Bangor. “We are experiencing a sellers’ market, with several multiple-offer situations this past month. Steady interest rates are keeping buyers in the market, and the banks are still refinancing loans at a good rate. The market for the upcoming spring looks fantastic.”

Brokers said multifamily homes, condominiums and single-family homes under $200,000 also are stars in the housing market now.

Luxury homes selling for more than $400,000 represent the market’s soft spot. Prices for those homes have flattened out.

Last year, “maybe people were too busy shoveling and dealing with winter and weren’t as apt to get out and look for a house,” said Brian Fulton, a buyer’s agent for The Hatcher Group/Coldwell Banker Harnden Beecher in Portland.

Scott Kerr, a broker with Re/Max By the Bay in Portland, thinks the downturn in the stock market also may have helped boost sales as people look for other types of investments.

“It wasn’t just about owning Microsoft,” he said. “It was about making money. Right now, would you put much money in the stock market?”


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