REAL ESTATE: Good and getting better

KENNEBUNK – The consensus on the real estate market in the Kennebunks and Arundel: Things have improved, but there’s still a ways to go – and everyone has their eyes on Nov. 6.

“The election will have an impact – people are kind of hanging and waiting to see what happens there,” said Heidi Maynard of Pack Maynard and Associates Real Estate in Kennebunk.

But overall, she described the market as “coming back.”

“Things are getting better,” she said.

Indeed, it’s a bright spot that appears to be reflected in the numbers. According to the Maine Real Estate Information System Inc., sales of existing, single-family homes increased 8.48 percent, year-over-year, in September, while the median sale price rose 6.92 percent. And York County, specifically, increased its units sold in the third quarter (July to September) by 11.78 percent – from 501 to 560 – in 2012 over 2011, while the median sale price rose 8.57 percent – from $210,700 to $228,750 – during that same period.

“I have seen a big improvement,” said Gail Arnold, broker and owner of Kennebunk Beach Realty Inc.

Overall, local sales are up about 10 to 15 percent over last year, estimated John Downing of Downing Real Estate Agency in Kennebunk, noting that there are a lot more offers coming in.

Still, he was more tempered in his assessment.

“It doesn’t mean it’s a good market,” he said. “It has picked up a little bit. It’s much better than it was last year, (but) nowhere near where it was at the height of the market.”

He also has a bit of a “wait and see” attitude in regard to the election.

“It all depends on banking and banking regulations – it’s been tightening up so much that nobody dares to do anything,” he said. “This is a big election for people in banking and small businesses.”

Still, Maynard stressed that the area hasn’t been as hard hit as many others have been. Overall, there have been fewer foreclosures and short sales than there have been elsewhere.

“Even in the worst times, there was still a lot of real estate done here,” she said. One of the biggest advantages: Mortgage interest rates, which remain at record lows, hovering around 4 percent for many months now.

Arnold, who was licensed in 1980, noted that “rates are at a point that those of us who have been in the business a while thought we would never, ever see.”

Ultimately, the rates have allowed more buyers into the market – many of whom would have otherwise rented.

In some cases, Arnold said, “buying has gotten more affordable than renting.” Maynard agreed that today’s market is more diverse.

“The low interest rates have opened up the market to a lot of people,” she said. “We’re seeing lot of young buyers coming to the market. People realize we’re at the bottom, and that this is the time to buy.”

But also, many empty-nesters and older baby boomers are downsizing, she said. All told, Maynard described the market this year as “busy,” “very robust” -– and even “fantastic.”

“Inventory’s way down, it’s come down substantially,” she said.

Much of the action has been on the upper end (properties priced $800,000 and above) and the lower end, with the mid-range market (properties priced between $600,000 and $800,000) being the “most sluggish,” she said.

Arnold, meanwhile, noted that the most attractive properties have been those that are energy efficient and updated. Condos have also done extremely well; and for second-time buyers, waterfront homes or homes with water views have been particularly popular.

And looking ahead?

“All indications are that the recovery we are in will continue, so I believe 2013 will be even better” than 2011 and 2012,” Arnold said.

Maynard went one better.

“I think 2013’s going to be a fantastic year for everybody,” she said.

Source: http://www.keepmecurrent.com/the_village/news/real-estate-good-and-getting-better/article_66b9fba6-238b-11e2-ae3e-001a4bcf887a.html