Maine 2nd Safest

Maine was ranked as the second safest state in the nation in the annual State Crime Survey published by CQ Press, a division of Congressional Quarterly. This is the 15th consecutive year that Maine has been reported in the top 3 safest states. New Hampshire ranked first and Nevada last

Maine's February Sales Down, But Ahead Nationally.

Maine Association of Realtors reports that Maine continues to be ahead of national sales figures in February 2008, although median sales price and number of units sold decreased again: sales slowed by 20% from a year ago during the month of February and prices dipped a slight 2%. A total of 555 single-family, existing homes sold in the month of February, compared to 698 homes sold a year ago. The median sales price for February was $190,000, a decrease of 2.04% from February 2007's MSP of $193,950. According the National Association of Realtors, nationwide sales of existing single-family homes fell 22.9% in February, and the median national sales price decreased 8.7% to $193,900.

Cool Stuff: Sail a "Windjammer" Along the Coast of Maine

I am partial to ocean sailing, especially on classic wooden boats -- plus there is no question that Maine has one of the most spectacular coastlines to be found anywhere. What can be frustrating to many landlubbers is that very little of it can be seen by automobile. Between roads and highways that seldom hug the shoreline and the scarcity of public lands and public access to the ocean, a person is hard-pressed to even get a glimpse of it...

So, maybe fortunately, the best way to view this spectacular rockbound coast is by sailing along it. Many of the "tall" ships and coastal sloops from the golden age of sailing in the 1800's and early 1900's have been restored and are available for day trips and vacation voyages.

We like to take visitors for an afternoon sail out of Camden harbor on the schooners Olad or Appledore or Surprise -- a very inexpensive way to give "awayers" a great experience and a peek at Maine's scenic beauty from the sea. A few Friendship Sloops (the original lobstering boats) also provide exciting day trips.

For a never-to-be-forgotten vacation, sign up for a several day cruise on one of the magnificent schooners listed below. You can help crew, enjoy bountiful meals which will include a lobster feast, anchor in protected coves, explore coastal villages or uninhabited islands -- and all at reasonable prices.

For information about these vessels and their sailing packages, check out the following websites:


Schooner Rachel B. Jackson (Bar Harbor) www.downeastsail.com
Schooner Margaret Todd (Bar Harbor) www.downeastwindjammer.com
Schooner Lewis R. French (Camden) www.schoonerfrench.com
Schooner Mary Day (Camden) www.schoonermaryday.com
Schooner Bagheera (Portland) www.portlandschooner.com
Schooner Jenny Norman (Rockland) www.sailmainebugeye.com
Schooner Heritage (Rockland) www.schoonerheritage.com
Schooner American Eagle (Rockland) www.schooneramericaneagle.com
Schooner Isaac H. Evans (Rockland) www.midcoast.com/~evans/
Schooner J & E Riggin (Rockland) www.mainewindjammer.comS
chooner Nathaniel Bowditch (Rockland) www.windjammervacation.com
Schooner Stephen Taber (Rockland) www.stephentaber.com
Schooner Victory Chimes (Rockland) www.victorychimes.com
Schooner Timberwind (Rockport) www.schoonertimberwind.com
Schooner Olad (Camden) www.maineschooners.com
Schooner Grace Bailey (Camden) www.mainewindjammercruises.com
Schooner Mercantile (Camden) www.mainewindjammercruises.com
Schooner Mistress (Camden) www.mainewindjammercruises.com
Schooner Appledore (Camden) www.appledore2.com
Schooner Angelique (Camden) www.sailangelique.com
Schooner Surprise (Camden) www.camdenmainesailing.com
Schooner Annie McGee (Southwest Harbor) www.anniemcgee.com
Schooner Sylvania W. Beal (Eastport) www.eastportwindjammers.com
Schooner Kathryn B. (Rockland) www.midcoast.com/~kathrynb/
Friendship Sloop Integrity (Harpswell) www.mainelobstering.com
Friendship Sloop Alice E (Bar Harbor) www.downeastfriendshipsloop.com
Friendship Sloop Helen Brooks (Bar Harbor) www.downeastfriendshipsloop.com
Friendship Sloop Amity (Belfast) www.friendshipsloopamity.com
Friendship Sloop Sarah Mead (Muscongus Harbor) www.sailmuscongus.com


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Home Resales & Prices Decline

The backlog of unsold homes continued to pile up in January, a sign that home prices will continue to drop as would-be buyers hold out for better deals.

Sales of previously owned homes fell for the sixth consecutive month, dropping 0.4 percent, to an annual rate of 4.89 million, the National Association of Realtors said on Monday. While the decline was less than forecast, the sales pace is the slowest since the survey began nearly a decade ago. The median home price dipped to $201,100, down 4.6 percent from a year ago.

At the current sales rate, it would take 10.3 months to sell off the current inventory of unsold homes. “That’s enormous,” said Joshua Shapiro, an economist at the research firm MFR. “That’s double the normal amount and well above where we were a year ago.”

In a research note, Mr. Shapiro noted that inventories may actually be higher “if all those wishing to sell their home actually had the house on the market instead of pulling it off in the face of weak demand and eroding prices.”

And economists see little relief in the months ahead, as a combination of tighter lending standards, the softening job market, and elevated inventories keep buyers on the sidelines.

“Home sales have not hit bottom yet,” Mr. Shapiro said. “Prices haven’t declined enough to stimulate enough demand for sales to turn up.”

Weak demand is likely to put more pressure on home owners to lower their asking price, extending one of the worst slumps in the history of the housing industry. The median price of an American single-family home fell in 2007 for the first time in at least four decades, and sales of those homes dipped 13 percent last year, the biggest annual decline in a quarter-century.

Sales of single-family homes actually ticked up in January, but the rise was offset by a plunge in sales of condominiums and apartments. Median prices fell in both categories.

Still, there were a few positive points in the report. Economists had predicted a steeper drop-off in sales, and purchasing figures were revised up for the last five months. The December sales estimate was raised to a 4.91 million annual rate.

...as reported in the New York Times today, February 25, 2008.

Replacement of Trees Cut in Shoreland Areas

In Late 2007, a new law went into effect that is intended to address a growing concern that developers, property owners, or others have illegally removed trees in shoreland zoned areas, in some cases paid a nominal fine without being required to mitigate the violation by replanting trees. In many cases the the violater has created a view that results in an increased property value far higher than the monetary penalty assessed. The law aims to discourage others from having the attitude they can purchase a clearing to the water, and ultimately help retain the scenic character of Maine's shoreline. For guidelines on clearing vegetation, go paragraph #15 of the "Common Questions" section of our website http://www.waterfrontpropertiesofmaine.com/ -- or for more specific information on this new law, go to http://www.maine.gov/dep/blwq/docstand/sz/is-restoration.htm...

Maine Home Prices Continue to Defy National Slump

The following are excerpts from an article published in the Portland Press Herald on January 17, 2008, written by Tux Turkel:

"Nationally, home sales are falling and so are prices.

"It's a one-two punch that has staggered the U.S. housing market. Hardly a day passes without a gloomy headline about real estate on the ropes.

"But that's not been happening in Maine, where the sale price of most homes has been rising.

"The trend highlights a disconnect in Maine: over the past year, the number of homes sold has declined by double digits nearly every month. Despite that, median prices continue to edge up, or remain flat.

"Several factors have been supporting prices in Maine, including the fact that that this market isn't prone to the speculative building and boom-and-bust economic growth of some other states.

"Other major markets, plagued by price speculation, overbuilding and high job losses, helped drag down average home values nationwide. They are also areas most likely to generate national headlines.

"Even regionally, Maine is doing better than those New England locations - such as Boston - that are most likely to make the national news.

"Another reason Maine is holding up is because the statewide economy is in better shape than that of some other states. Maine's unemployment rate is 4.8%, on par with the national average and much healthier than in hard-hit locales. That translates into fewer homeowners who are desparate to sell because of job losses or credit problems.

Other factors:

"Prices didn't soar as high here during the boom, so they don't have as far to drop.

"Maine saw comparatively little overbuilding and speculative buying, so there isn't a glut of unsold homes going at bargain prices.

"The area hasn't been as hard hit by foreclosures.

Charles Colgan, a former state economist who chairs Maine's economic forecasting committee, said he expects Maine to follow the nation into a recession. But Colgan, who regularly studies federal data and other home price indexes, said the national decline appears to be bottoming out. Unless the country enters a deep recession, Maine home values may not have much further to slide.

"We may have escaped the worst of it", he said...""

As Always, Real Estate is Local.

I saw on the news a few days ago that real estate values in California have dropped by 28% this past year. Having moved to Maine from California about 7 years ago, I quickly calculated that this means someone who owns a $400,000 home there (which doesn't buy much in most of California) now owns a home worth $288,000 !

I compare this to Maine, where median home values went UP slightly in both July and August, and dropped DOWN in value slightly in September (overall, a 1.04% decrease over the previous year). The national median sales price had a decrease of 4.9% for September alone.

Further, Knox County, where I am located in mid-coast Maine, had a sales increase of units sold from July 1 to September 30 of 21.71% and an increase of median sales price of 8.33%, compared to statewide figures of -1.49% units sold and +1.56% increase of medain prices.

All of which just goes to support the proposition that real estate is indeed very local in nature, despite the doomsday blitz by the national media....