From Northport to Stockton Springs condominiums have been selling at record high volume over the last 4 years. On average more than 20 units sell each year as this market attracts buyers across the country and the world with attractive prices and care free living here on the coast of Maine.
As with most markets, an increase in demand generally causes an increase in supply. The increase in supply is then followed by a reduction in price in order to compete with the increased supply. Specialized real estate markets are no exception. 2010 was the highest volume year in recent memory With 28 sales and an average price of $184,328. The next year, 2011, sale prices hit an all-time average low of just $126,433.
While the real estate market is very quick to respond to economic downturns pricing recoveries tend to happen slowly over several years due in part to the way that real estate professionals and lenders calculate the value of a property based on recent comparable sales. As a result prices for units sold so far this year have just now returned parity with the average price over the last 10 years. With only 22 units on the market we will likely see fewer sales this year and prices should continue to slowly rise.
So is it a buyer’s market or a seller’s market? If you were thinking about buying over that last several years and didn’t you missed the boat. Mortgage rates are up almost a full percent benefiting neither the buyer nor the seller but hurting both. If interest rates continue to climb it could force sellers to lower their prices to remain affordable to buyers. This year will be more balanced between buyer and seller than years past.
To respond to the author please call 207-619-1226 or email brian@CamdenHillsRealty.com
Brian Walker is a leading agent in Mid-Coast Maine representing than 2 million dollars in the market place annually with a focus on waterfront and water view properties.