According to a February report issued by the National Association of Realtors, soft market conditions are forecast to continue for existing homes sales for the next several months, with improvement anticipated in the second half of the year, provided that loan limits are increased.
Existing-home sales are projected at an annual rate of approximately 4.9 million in the first half of this year, rising notably to 5.8 million in the second half. Projections for 2009 are a rate of 5.60 million unit sales. The aggregate existing-home price is expected to decline nationally 1.2 percent in 2008 to a median of $216,300, and then rise 3.2% to $223,200 in 2009.
As reported in previous Maine Real Estate News posts, home sales in Maine have not experienced the dramatic decline as other parts of the county. Comparing 2007 full-year sales statistics to 2006, Cumberland County sales declined 7.6% and York County declined 9.3%.
Most Maine realtors are confident in the market, especially since most current sellers have adjusted list prices to reflect market conditions and buyers have a better understanding of what to expect in the negotiating process. Although there is still considerable competition among homes on the market, as evidenced by nearly 29 weeks of inventory available in Cumberland County, good homes, well priced, are selling.
Nationally, new-home sales are expected to decline 17.7% to 637,000 in 2008 before rising 7.6% to 685,000 in 2009. According to Lawrence Yun, NAR’s chief economist, “Builders will further lower new home construction throughout this year and into 2009 to bring inventory under control.” Housing starts, including multifamily units, are estimated to fall 20.1% to 1.08 million this year, and decline another 1.3% to 1.07 million in 2009. This is also true in Maine, as builders have been reluctant to undertake spec homes with some many existing homes on the market.
Posted by: Michael Sosnowski
Categories:
Maine Real Estate