May Home Sales

In a press release to the Maine media today, the Maine Association of Realtors reports a 12.39% decrease in home sales comparing May 2008 to May 2007. The median sales price for those homes was down 5.7% to $182,000. The median sales price indicates that half the homes were sold for more and half sold for less. However, during the rolling quarter sales period, which includes the months of March, April and May combined, 5 of Maine's 16 counties experienced an increase in the median sales price. Nationally, single-family home sales were 14.5% lower than in May 2007.

Your Own Private Island...

The following are excerpts from an article published in Time magazine recently, written by Kristina Dell:

"New technology makes living on an island more feasible, but...

"Do you have what it takes to own an island?

"Sure, it sounds great. But here are some things to consider before signing the deed:

"Do you have a pioneering personality?

"Most island owners are entrepreneurial spirits. "We see all types from all age groups and backgrounds except for one thing: all are very strong individualists," says island real estate agent Farhad Vladi.

"Can you afford it?

"Homeowners insurance is tough to get, and very few lenders will give financing for island properties. In addition, construction costs can run 30% to 60% more than on the mainland since you're hauling everything from doorknobs to sewer systems.

"Are you handy?

"You can't just call the plumber when the toilet backs up or the sysytem breaks and leaves you without electricity or running water. Mechanical and carpentry skills help.

"Are you heathy and hardy?

"You're a boat ride away from a hospital or doctor. You should be in good enough shape to climb in and out of boats and haul things.

"Do you need people around?

"If you get lonely easily, island living isn't for you -- unless you surround yourself with family and friends. (then you'd better enjoy their company.) "A lot of things that bother other people about islands, I enjoy," says Chris Krolow, who owns an island in Canada. "I like being stranded."

"There are an estimated 700 habitable islands in the U.S., most located off the coasts of New York, Maine, New Jersey, and Connecticut; in the Great Lakes region; along the shores of Florida and the Carolinas; and in the Pacific Northwest. The fact that only 150 are for sale at any given time adds to the allure of owning one..."

"Your Piece of Maine" Contest

As part of a social media campaign kicked off this week by the Maine Association of Realtors, a $20,000 Grand Prize is being offered to the public for creating the best You Tube video showing why they love, or want to own a piece of Maine.

There will be 10 prizes in all, including a $5000 second pize and eight $1000 third prizes. Contest details can be found at http://yourpieceofmaine.com.

This is one part of a multi-media effort to encourage first time home buyers and other Mainers to invest in their own piece of Maine. The contest is limited to Maine residents, anyone out of state who owns property in Maine, or Maine kids attending out of state colleges.

It's encouraging to see this industry organization taking action to stimulate our slowing economy...

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.