In Southern Maine, More Than the Weather is Cooling Down

The Boston Globe reports that the housing market in Southern Maine - an area just 75-100 miles from Boston with quaint New England villages and vacation spots - is showing signs of cooling off after years of red-hot sales. The region’s major real estate brokers are reporting that for sale listings are increasing and that sales are declining. As houses stay on the market longer, owners have been forced to lower their asking prices - a practice rarely seen in the booming sellers’ market of recent years.

While Maine’s median sales price in September was $194,600 - a figure nearly 10 percent higher than a year ago and twice the median statewide price ($97,000) of six years ago - the Portland Board of Realtors reports that business is off track for the first time in years. Many Maine real estate experts believe that with more supply than demand (due in part to the rise in mortgage rates nationwide) the market is gradually shifting to one more friendly to buyers.

What does this mean for a potential buyer? If you’re looking to buy, it’s still a good investment in the long run. The years of 10-15 percent increases may be over, but appreciation will still be slow and steady, experts believe. But be sure you recognize this market trend when you go house hunting, however, as you don’t want to be stuck with a house worth less than you paid for it. You have more leverage than you think at this stage - so take advantage. For further advice, see Florida Home Loan’s guide to making an offer on a house.