Real Estate Spotlight - December 2022

Real Estate SPOTLIGHT

an unmatched blend of local expertise, world-class waterfront homes, ranging from stunning coastal and beach to enjoy the best of what Maine has to offer. Damariscotta, Camden, and Northeast Harbor on Mount our expert agents.

Edited by: Chris Fortunato Andy Lynch Joanna Pineau

DISCOVER THE VALUE OF YOUR HOME

Our state-of-the-art online residential property valuation service lets you find the estimated current value of your home simply by filling in your address on the banner of our LegacySIR.com homepage. This value is used in all aspects of the valuation process for lenders, GSEs, mortgage brokers, mortgage servicers, investment bankers, and mortgage investors as well as anyone who requires fast, reliable, and cost-effective residential property valuations.

For a more detailed Market Analysis, please contact your Legacy Properties Sotheby’s International Realty sales associate.

Nothing Compares.

Don’t Always Believe the Headlines

The famous writer and satirist, Mark Twain, once responded to a rumor published in the press that he had succumbed to a serious illness with the famous quip, “Rumors of my death are greatly exaggerated.” The real estate market has faced similar reports over the last few months. There is hardly a day that goes by in which one or many periodicals (local, regional, and national) predict the imminent demise of the residential real estate market. Of course, there are selective examples in which certain cities in certain states are struggling while others are moving along with little sign of collapse.

I am pleased to say that Maine real estate is not exhibiting signs of collapse and continues to have a strong underpinning characterized by a deep buyer pool, stabilizing prices at all-time highs, limited inventory, and a growing number of people from all over the world adding Maine to their list of places to visit and possibly relocate. Maine is a small real estate market, and it does not take too many Maine lifestyle converts to keep the supply and demand dynamics at a healthy level. As you will see in the accompanying chart, median list prices in Maine enjoyed a significant increase early in the year and have remained stable or have slightly improved through November.

Historically, rapidly rising interest rates have slowed the pace of buyer demand, but Maine continues to benefit from a steady stream of buyers. Mortgage rates have risen from lows of 2.75% to recent highs at or above 7.25%. At the moment, conventional mortgage rates are hovering around 6.50%, with jumbo loans available at or below 6%. We are hearing a sigh of relief from buyers and sellers alike as rates move into a more approachable range for many. There were many would-be sellers who did not enter the market during the pandemic for multiple reasons, including an inability to find a place to move and/or an unwillingness to allow strangers into their home for personal safety reasons. We then quickly transitioned from the foregoing to a sudden and dramatic change in mortgage rates, which has discouraged sellers from giving up the low rate on their existing mortgage. As a result, we do not see a scenario in which Maine will experience a large inflow of new listing inventory. This coming year, we will have our usual seasonal slowdown, which generally lasts until the early spring, followed by a steadily increasing number of homes for sale.

The pandemic moving frenzy undoubtedly had a major impact on our market conditions. We witnessed many who were part of a 20-plusyear-long widespread movement towards urbanization start to unwind in a matter of months. I do not have the data to say that such a change was unprecedented, but I can say it was beyond anything I could have anticipated. It has been a very tough time for buyers to secure the home of their dreams when competing with anywhere from five to thirty-five other buyers for the same home on the same day. The unhealthy froth that has engulfed our markets for the past two years has clearly subsided. As a result, we are in a much more manageable and healthy housing environment. You will see that the ratio of sold price to list price has moved from an unsustainable 104% back to a more normal 96%. As a result, we are hearing that buyers have a bit more time and have been able to return to more normal terms and conditions as part of a purchase and sale agreement. Buyers who, last year, would have elected to forego inspections and financing contingencies have more options and opportunities in the current market.

In summary, the general conditions of the Maine market are quite healthy, with a moderate supply and demand imbalance. That said, the current weakness in new listing inventory due to cyclical and seasonal pressures will make it nearly impossible for the technical aspects to deteriorate too much from current conditions. It is our opinion that 2023 will be a very good year for our Maine markets. Opportunities will exist for sellers to achieve solid, near-record-high prices while enabling more buyers to get into their dream homes with less competition and on mutually agreeable terms.

We appreciate your support throughout the market turbulence. You, our friends, customers, and clients, have been there for us, just as we have been there for you as we navigate these uncharted real estate waters.

I wish you a joyous holiday season and a prosperous new year!

Chris

President/Owner

Legacy Properties Sotheby’s International Realty

Source: Maine Real Estate Information Systems, Inc. (d/b/a Maine Listings).

With access to more than 3,500 miles of Atlantic oceanfront, 6,000 lakes and ponds, and mountains with world-class skiing, Legacy Properties Sotheby’s International Realty is uniquely positioned to help you find your dream home in Maine. Simply put, we have the premier portfolio of Maine real estate and waterfront properties for sale.

SELLING THE MAINE LIFESTYLE

Founder

Chris Lynch

Talks “Selling the Maine Lifestyle” on Chalmers Podcast

Chris Lynch, the Legacy Properties Sotheby’s International Realty Founder and President, is featured on the latest episode of “The Community Cast,” a podcast by Chalmers Insurance focusing on in-depth explorations of local leaders and business owners who are giving back to their communities.

In the newest episode “Selling the Maine Lifestyle with Chris Lynch,” host Dottie Chalmers Cutter, the fourth-generation owner of Chalmers Insurance Group, discusses the history of Legacy Properties Sotheby’s International Realty from its founding back in 2006 with

just six agents, to the present day as the third largest real estate company in Maine with more than eighty agents and six offices across the state.

Lynch, originally from Massachusetts, was introduced to Maine as a student majoring in Economics at Bates College. After nearly two decades working on Wall Street, he decided to relocate his family to the coastal community of Cape Elizabeth, Maine, falling in love with the wide range of outdoor recreation and infrastructure to raise his four children.

He recognizes Maine as a global lifestyle destination, and touts the ease of accessibility to amenities like golf courses, beaches, and ski resorts, and the coveted local foods like blueberries and lobsters.

Listen to the episode on the Chalmers website, Apple Podcasts, and Audible.

Chalmers Insurance has locations in Maine and New Hampshire and is a fourth-generation, family-owned, independent insurance agency with a history that stretches back 165 years.

LEGACY COLLECTION

Our exclusive, multi-page property books are distributed with Maine Home + Design, Down East, and in select areas, The Wall Street Journal and The Boston Globe. As many as 84 pages are

To receive a copy, either in print or electronically, please email collection@legacysir.com.

3 D VIRTUAL TOURS

Welcome to the always-open house. Our immersive Matterport 3D Virtual Tours transport you into the finest selection of Maine Luxury Properties and let you explore like never before. Use Dollhouse view to see a whole property at once, switch to floorplan view for a traditional top-down perspective, or walk through like you’re there in person. Our Matterport 3D Virtual Tours are unlike any other real estate virtual tours. They are the most realistic, cutting edge, and comprehensive way to experience a property online. Click on any of the thumbnail images below to experience the Maine Lifestyle from the comfort of your own home.

The Sotheby’s International Realty network is comprised of nearly 26,000 affiliated independent sales associates located in over 1,000 offices in 81 countries and territories worldwide. Our listings are marketed on the sothebysrealty.com global website and on local affiliate websites across the world in the markets from which our buyers are coming. This global exposure not only affords our listing clients the widest possible distribution to the highest number of qualified buyers, but it allows all of our clients access to the most experienced and accomplished real estate experts in whichever town, city, or country they may have needs.

REAL ESTATE EXPERTS IN EVERY MARKET GLOBAL REACH THINKING ABOUT A MOVE?

Let us help you find the right agent through our global network at Sotheby’s International Realty. For more information call 207.780.8900 or email info@legacysir.com

RENTALS

Maximize Your Home’s Income

There is incredible demand from guests seeking to vacation in Maine and we are looking for outstanding new properties to add to our portfolio of the finest luxury rental homes in all of Maine. We provide a full-service rental experience, including professional photography, cutting edge Matterport 3D Virtual Tours, unmatched global luxury branding, marketing and distribution, and dedicated support.

Contact us today for an analysis of your home and to discuss how we can help maximize your rental income.

Visit us at luxurymainerentals.com to view our exceptional luxury rental homes or contact Scott E. Dobos, Director of Rental Operations, at rentals@legacysir.com or 207-370-5479 for more information.

FEATURED RENTAL

This newly renovated oceanfront home has five bedrooms and three and one half bathrooms and includes an outdoor shower for an excellent post-beach day! Relax by the fire pit in the cool evenings with the ocean breeze. There are many amenities throughout the home for your comfort and convenience.

This home sits mere steps away from one of the more popular beaches in the area and Maine, Mother’s Beach, which is located next to the KBIA - a commonly attended Summer camp for youths in the area. Middle Beach and Gooch’s Beach are located within walking distance as well.

Private chef and concierge services may be available, inquire for more details.

207 Beach Avenue, Kennebunk | $16,100 per week 5-BEDROOM | 3.5-BATHROOM |

FEATURED RENTAL

This extensively renovated and furnished waterfront home in South Freeport is ready to welcome its first guests. It is perched overlooking Casco Bay and provides direct water access for boating, swimming, and fishing. Convenient location by South Freeport Village, the Harraseeket Yacht Club, Harraseeket Lunch and Lobster Company, and more! The floorplan can easily accommodate eight guests with ample room to spread out in the living room or media room, with most rooms overlooking the water.

Off-season and summer rentals are both available. Rent before the holidays in 2022 or first thing in the new year until the summer season starts. $7,000 per month during the winter and spring and $10,000 per week in the summer.

Private chef services and concierge services may be available.

THANK YOU FOR YOUR TRUST AND SUPPORT.

for all homes sold over $5,000,000 in Maine

for all homes sold over $2,000,000 in Maine

for all homes sold over $1,000,000 in Maine for all waterfront sales in Maine

for all homes sold over $600,000 in Maine

Legacy Properties Sotheby’s International Realty attributes its success to offering its clients a very strong package of marketing services including: professional photography, Matterport 3D Virtual Tours, glossy print advertising, global property distribution through its exclusive network of agents, and luxury branding through its affiliation with Sotheby’s International Realty.

*Based on information from the Maine Real Estate Information System, Inc. (d/b/a Maine Listings) for the period 01/01/2021 through 12/31/2021

SOCIAL MEDIA

Over 60,000 social media followers interested in Maine real estate.

At Legacy Properties Sotheby’s International Realty, we use social media to connect your home to our vast community of real estate intenders and influencers from across the globe. Social Media, like real estate, is about connecting people and cultivating relationships, which makes it the ideal tool for marketing your home.

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PORTLAND OFFICE

2 City Center Portland, Maine 04101 207.780.8900

KENNEBUNK OFFICE 150 Port Road Kennebunk, Maine 04043 207.967.0934

BRUNSWICK OFFICE

141 Maine Street Brunswick, Maine 04011 207.729.2820

DAMARISCOTTA OFFICE

170 Main Street Damariscotta, Maine 04543 207.563.2775

CAMDEN OFFICE

46 Bay View Street Camden, Maine 04843 207.230.1003

NORTHEAST HARBOR OFFICE

6 Neighborhood Road Northeast Harbor, Maine 04662 207.780.8900