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Portland is seeing a number of new out-of-state consumers. However Bangor is seeing a much bigger share.
Maine’s lengthy historical past with short-term properties makes it possible many consumers will use their new properties as seasonal residences. Although itemizing one other handle might merely imply retaining possession of a earlier residence, the market’s massive share of individuals from away is affecting house-buying prospects for Mainers who need to keep right here.
In Bangor, 5 out of 19 residential properties (26 %) that offered for $250,000 or extra have been purchased by individuals who listed their after-sale mailing handle outdoors of Maine in Might. That proportion was truly larger than in Portland, the place 9 out of 61 (15 %) of such properties that offered had an out-of-state handle listed.
The numbers showcase not simply the continued need for individuals outdoors of Maine to relocate to the state or get second properties there, but in addition the sturdy function such purchases play in driving demand after which costs.
Many buying properties now are first-time consumers trying to relocate, stated actual property agent Kathryn Townsend of Cape Elizabeth-based Townsend Actual Property. She stated most out-of-state residents who purchase Maine properties appeared to be ready to remain right here full-time, although she had labored with some who have been buying summer time properties.
Cape Elizabeth, one in every of Maine’s wealthiest communities and among the many locations the place housing has been tight, noticed 4 out of 13 of properties offered to residents with out-of-state addresses final month.
With Maine having a median family revenue under the nationwide common, most consumers are coming from states the place the everyday individual has way more wealth and assets, together with the power to win a bidding battle or pay upfront in money.
For instance, Maine’s median family revenue was $59,500 as of the 2020 American Neighborhood Survey, with 26 % of households making greater than $100,000 a yr. Massachusetts, which was residence to the biggest chunk by far of out-of-state consumers for the communities examined, has a median family revenue of $84,400, with 43 % of households making greater than $100,000 a yr.
Although that distinction is much less large within the components of southern Maine the place the housing affordability disaster is the worst, the common Massachusetts resident continues to be richer than the common individual in each Cumberland and York counties.
However out-of-state consumers got here from a wide range of different states. Separate individuals who listed their handle in Colorado purchased properties in Bangor (a $410,000 residence), Biddeford ($355,000) and Portland ($450,000) in Might. Different addresses listed on gross sales this yr within the communities examined included California, Hawaii, Missouri, Nevada, Texas, Virginia and Washington, together with each New England state besides Vermont.
The handle listed for consumers who purchased a $251,000 three-bedroom property on Pearl Road in Bangor was within the Florida Keys group of Tavernier.
The connection these consumers need to Maine varies considerably, starting from none to having grown up there earlier than transferring elsewhere within the U.S.
The information showcase that out-of-state consumers aren’t trying solely on the properties within the Portland Metro space. One of many two residential properties that offered for $250,000 or extra in Presque Isle final month was purchased by two individuals who listed their handle as being in Abingdon, Virginia.
Nonetheless, some areas are seeing a better proportion of gross sales to current Maine residents than others. All 5 of the residential properties valued at $250,000 or larger in Poland have been purchased by those that listed a Maine handle final month.
Kennebunkport, lengthy a preferred summer time residence vacation spot for rich residents, noticed 5 out of six residential properties value $250,000 or extra purchased by out-of-state residents in Might. That’s a slight improve from the quantity in Might 2019, nearly a yr earlier than the COVID-19 pandemic would essentially change Maine’s housing market.
The variety of out-of-state purchases in Biddeford truly went down this yr in contrast with pre-pandemic: they made up 41 % (9 of twenty-two) of gross sales in Might 2019, however 20 % (4 out of 20) in Might 2022.
Lengthy a spot that has been fascinating for Mainers and non-Mainers alike to relocate or purchase a trip residence, Townsend stated Cape Elizabeth’s actual property market lastly appeared to be slowing down.
“It’s undoubtedly cooling off. Much less consumers, most definitely as a result of rate of interest hike,” she stated. “That is usually our busiest time of yr.”