SOUTH PORTLAND, Maine– Potential purchasers using much more than the asking cost for homes in South Portland are still losing as the southern Maine city has become one of the most competitive markets in the nation for purchasing a house.
South Portland was the only east coast city to break the leading 10 list otherwise controlled by areas in Washington state and California, according to rankings launched Monday by Seattle-based real estate brokerage Redfin.
Out-of-state buyers looking for a safe area to live and those desiring features and close proximity to Portland are increasing sales and rates in South Portland. Others have actually chosen to relocate to more backwoods of the state like Rangeley and Greenville.
“I have a handful of buyers who have been making offers in South Portland for 6 or seven months and are going $20,000 to$40,000 over the asking cost,”realtor Jeff Walker of Bean Group Property in South Portland, stated. “And they’re losing to cash buyers who appear to be coming from out-of-state.” One couple who had actually been looking at larger homes in their present South Portland community have nearly given up trying, he stated.
Almost 56 percent of homes in South Portland are selling above sticker price, Redfin stated. The typical list prices at which half the homes cost more and half for less was $350,000, up practically 8 percent from Jan. 1 to Dec. 8 of this year compared to 2019. Stock is tight, with more than 55 percent fewer active listings this year compared to last year. Homes on the marketplace see numerous offers and get snapped up in an average of 7 days, less than half the time for an offer last year.
The hot market comes at a time when buyers, sellers and property representatives are observing pandemic security precautions, consisting of wearing face coverings and restricting the variety of people seeing a home at one time.
Still, people are gathering to the location from more expensive cities due to the fact that it’s one of the last economical coastal locations in the country, Megan McShane, a Portland-area agent with Redfin, stated.
“It’s hotter than ever this year with remote workers moving in from locations like Boston and Los Angeles,” she said.
When she transferred to the Portland area 2 years back, McShane stated among the very first homes she put under contract was in South Portland. It had actually been sitting on the market for a few weeks and she had to lower the price to offer it.
” That would never occur now,”she stated.”Whatever is getting scooped up with multiple deals, waived contingencies and waived appraisals.”
The majority of the buyers are from Massachusetts, New York, Connecticut and New Jersey, Walker stated, and tend to be looking only in South Portland for amenities like proximity to Willard Beach. In the past, buyers have actually asked to be within a 30-mile radius of Portland or a 20-minute drive from their work. And some had actually wanted to South Portland as a cheaper alternative to Portland, but prices are high in both cities now.
“It’s one of those towns that has simple access to the interstate and Portland,” Lisa MacDonald, associate broker at Better Residences and Gardens, said. “It has basically everything that you need in your area if you do not wish to enter into Portland.”
Homes are close together in many of the neighborhoods, she stated, providing the feel of a neighborhood where it is safe to walk. The Knightville neighborhood has small stores and older houses and Mill Creek has a skating pond and summer shows. Crescent Beach and Higgins Beach neighbor.
A lot of her purchasers are young couples or young professionals relocating to the area. Customers have moved in from California, Florida, Illinois, Massachusetts, Pennsylvania, Tennessee and Texas.
“Considering that COVID-19 the marketplace has gotten very tight,” MacDonald said. “It’s a difficult market for purchasers.” Some houses are offering sight hidden, with some buyers even waiving house evaluations and appraisals.
Regional people looking to move to a various home in South Portland also are discovering it hard. Some sellers can’t really manage to put their houses on the market, MacDonald stated.
“They can’t afford to offer because they can’t afford to buy another house,” she said.
In spite of the hot market, home sales in Maine and across the nation decreased in November compared to October, despite the fact that they were higher than in November 2019, according to state and nationwide data. Pending house sales were down for the third straight month in November, the National Association of Realtors on Wednesday stated, decreasing 3.3 percent from October to November in the northeast,
The Maine Association of Realtors last week reported that existing house sales, at 1,965, were up 31 percent over last November, but below the 2,341 systems sold in October. The median sales price was $270,000 in November, up 20 percent over the previous year however down somewhat from $280,000 in October.
Both MacDonald and Walker associated the October to November declines to typical seasonal softness.
They also said they have actually not yet seen foreclosures related to task losses during the pandemic. Property owners are not dealing with the exact same conditions as the Great Economic crisis from 2007 to 2009, Walker stated, when many homeowners borrowed more than their houses deserved. By contrast, present house rates have actually increased over this year.
Today’s hot market is expected to continue in South Portland through 2021, according to Walker, as out-of-state purchasers remain interested, demand remains high and loan rate of interest stay low.