Source – dailymail.co.uk
‘Get me any house in Maine!’ Out-of-state buyers from New York City, Boston and DC are flooding the Maine property market causing home values to surge 17% and supply to hit a ‘historic low’
PUBLISHED: 12:41 EDT, 15 October 2020
- Maine’s real estate market boomed this summer thanks to an influx of out-of-state buyers from New York City, Boston and Washington DC
- Maine Association of Realtors President Tom Cole said June and July were ‘gangbusters’ with nearly six percent more out-of-state buyers than last year
- In August, out-of-state sales went up nearly 10 percent
- Home value surged 17.39 percent in August alone and homes were snapped up in just 11 days with waived contingencies
- Experts say surge in interest is due to pandemic and work from home flexibility
In the spring Maine saw a startling decline in sales at the start of the pandemic, but by summer time a wave of buyers came in from out of state looking to ride out the COVID-19 crisis.
The value of single-family existing homes jumped 17.39 percent in August this year compared to 2019 and homes reached a median sales price of 270,000, as per Maine Listings.
Maine Association of Realtors President Tom Cole said June saw business pick up and July was ‘gangbusters’ with nearly six percent more out-of-state buyers than last year.
In August, out-of-state sales went up nearly 10 percent.+10
Maine has seen a stunning real estate boom as New Yorkers flee the big city for quieter pastures amid the pandemic. Maine Association of Realtors President Tom Cole said June and July were ‘gangbusters’ with nearly six percent more out-of-state buyers than last year. In August, out-of-state sales went up nearly 10 percent
The value of single-family existing homes jumped 17.39 percent in August this year compared to 2019 and homes reached a median sales price of 270,000, as per Maine Listings
In August 2020 707 single family homes were purchased by out-of-state buyers – a big jump from the 482 homes purchased in August 2019.
‘The August statistics show strong demand for residential real estate in Maine,’ Cole said.
‘We are experiencing a historically low supply of homes for sale, 40 percent below a year ago,’ he added.
Cole said demand is fuelled by all-time low mortgage interest rates and out-of-state buyers ‘seeking Maine’s quality of life and safety’.
‘It’s the most crazy market I’ve seen. There’s a very high demand, with people willing to pay high prices, but the lack of inventory made prices even higher,’ Nancy Hughes of Camden Coast Real Estate said to the New York Post.
New York native Jordan Cohen, 40, said he fled the Big Apple when the pandemic hit and the streets of the once-bustling city settled into an eerie silence.
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In Portland, Maine majority of out-of-staters searching online to purchase homes came from Boston, Massachusetts; Rochester, New York; and New York City +10
This map showed where user search data in the third quarter for Maine homes came from, with prospective buyers hailing from New York City, Boston, Washington DC and states as far as California and Washington
‘It was when things looked precarious and we didn’t know if we’d get out,’ Cohen said to the Post.
‘I always dreamed of living in Maine but it wasn’t possible because of work,’ he added.
Opportunity knocked when Jordan lost his tech job and he and his wife Elisabeth made the move to ‘ride out’ the coronavirus crisis at first renting a home in the coastal town of Camden, home to some 1,617 people.
After a while the couple purchased a historic home from 1925 on Chestnut Street in Camden for $725,000, where they now work from home.
For the couple Maine has a special place in their hearts. It’s where Jordan attended sleepaway camp as a child and enjoyed family vacations. It’s also where he proposed to Elisabeth at Acadia National Park.
‘Life here is awesome. I hike every morning. I’ve lost 30 pounds. It’s much more relaxed, but still productive,’ Cohen said.+10
Sold! This 7.05acre home in Cape Elizabeth featured five bedrooms and six bathrooms and recently sold for $1.385million+10
One of the apartments in this stunning adjoining Portland, Maine property sold for 340,000 on September 30+10
A taste of the calmer life: This three bedroom, two bathroom home on Chestnut Street in Camden, Maine is on the market for $625,000. One couple fled NYC to purchase a historic home built in 1925 on this same historic street for $725,000+10
Leaving the big city for space and nature: This tranquil three bedroom, two bathroom home in Westbrook, Maine is on the market for $349,900+10
Redfin recently sold this property in Portland, Maine. It went under contract in less than a week for full-price, selling at $295,000
Better Homes & Gardens, The Masiello Group brokerage said they’ve seen a stunning demand for homes due to the pandemic.
‘People have called and said “Get me any house in Maine,”‘ Gwyneth Freeman of the group said.
James Lott of vacation rental firm Camden Accommodations said they say a major spike in New Yorkers booking homes in Maine.
‘Probably 70 percent of my guests this summer were New Yorkers. Usually it’s sporadic, but New York was definitely in Maine this summer,’ Lott said.
One bidding war saw a ‘picturesque three-bedroom’ in Brunswick attract 12 offers.
The home, listed at $274,900, was sold within four days to a Nashville couple who paid well over the asking price offering $305,000.
Rich G, a 37-year-old lawyer who moved from New Jersey to Aroostook County in Maine said properties would be off the market in a a matter of hours.
‘We’d see something we liked and look back a day later and it would be under contract,’ he said.
The couple ended up buying a three-bedroom ranch in Caribou near the Canadian border for $159,000.
‘We made an offer within a day or two because we really liked the house. We acted quickly because we knew what was happening in the market,’ Rich said.
Freeman of Better Homes & Gardens says the pandemic and working remotely has led people to seek greener pastures.
‘Without the pandemic, people might not have thought outside the box. But now they realize they don’t have to go into the office and can work anywhere,’ the realty agency said. +10
Homes were being swept off the market in a matter of 11 days – six days faster than this time last year, according to Redfin Portland, Maine data+10
Redfin Real estate agency said that the real estate market in the metropolitan area of Portland, Maine has seen prices rise 18 percent in August compared to this time last year and supply was down 63 percent last month
Redfin Real estate agency said that the real estate market in the metropolitan area of Portland, Maine has seen prices rise 18 percent in August compared to this time last year and supply was down 63 percent last month.
‘The market is competitive with demand far outpacing supply,’ Redfin shared with DailyMail.com.
Search activity for Maine real estate also primarily came from people in other states with 54 percent from Boston, six percent from Rochester, New York and Washington DC and five percent from New York City.
In a bid to make purchasing fast about 10 percent of Redfin customers waived either a financing or inspection contingency in August and the average home sold for $350,000.
Homes were being swept off the market in a matter of 11 days – six days faster than this time last year, according to Redfin Portland data.
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