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In Portland, there are some new buyers outside the state. But Bangor is seeing a larger share.
Long history of Maine with temporary properties Many buyers are more likely to use the new property as a seasonal residence. Listing another address may simply mean retaining ownership of the previous home, but the majority of people from remote markets want to stay here in Maine homes. It is affecting the outlook for purchases.
In Bangor, five (26%) of the 19 homes sold for more than $ 250,000 were purchased in May by people with post-sale addresses outside Maine. That percentage was actually higher than in Portland, with 9 (15%) of 61 such properties sold having out-of-state addresses.
This figure is not only the ongoing desire of people outside Maine to move to the state or build villas there, but also the powerful role that such purchases play in driving demand and prices. is showing.
According to Catherine Townsend, a real estate agent at Cape Elizabeth-based Townsend Real Estate, many homes purchased are currently the first buyers considering relocation. She said most out-of-state residents who buy a home in Maine worked with those who bought a summer home, but seem ready to stay here full-time. rice field.
Cape Elizabeth, one of the wealthiest communities in Maine and one of the places where housing was located tightLast month, I saw four of the 13 properties sold to residents with out-of-state addresses.
Because the median household income in Maine is below the national average, most buyers have far more wealth and resources for the average person, such as the ability to win bid wars and prepay in cash. I’m from a state that has.
For example, the median household income in Maine was $ 59,500 as of the 2020 American Community Survey, with 26% of households earning more than $ 100,000 annually. Massachusetts, home to the overwhelmingly largest out-of-state buyer in the community surveyed, has a median household income of $ 84,400, with 43% of households earning more than $ 100,000 annually. increase.
In the southern region of Maine, where the affordable housing crisis is most severe, the difference is not that great, but the average resident of Massachusetts is more than the average person in both Cumberland and York counties. Is also wealthy.
However, out-of-state buyers came from various other states. Others who listed their addresses in Colorado bought real estate in Bangor ($ 410,000 home), Biddeford ($ 355,000), and Portland ($ 450,000) in May. Other addresses sold this year in the community surveyed included all New England states except California, Hawaii, Missouri, Nevada, Texas, Virginia, Washington, and Vermont.
Addresses Listed for Buyers Who Purchased $ 251,000 3 bedroom properties Located on Pearl Street in Bangor was the Florida Keys community in Tavernier.
The connections between these buyers and Maine vary greatly, from none to those who grew up there before moving to other parts of the United States.
Records show that out-of-state buyers aren’t just looking at properties in the Portland Metro area. One of two residential properties Sold for over $ 250,000 Last month’s Presque Isle was purchased by two people who stated their address was in Abingdon, Virginia.
Still, in some regions, the percentage of sales to existing residents of Maine is higher than in other regions. All five residential properties in Poland worth more than $ 250,000 were purchased last month by people who listed their addresses in Maine.
In Kennebunkport, a summer villa that has long been popular with wealthy residents, out-of-state residents purchased five of six residential properties worth more than $ 250,000 in May. .. This is a slight increase from the number in May 2019, almost a year before the COVID-19 pandemic radically changed the housing market in Maine.
The number of out-of-state purchases in Bideford has actually dropped this year compared to before the pandemic. It accounted for 41% (9 of 22) of sales in May 2019, but was 20% (4 of 20) in May 2022. ..
Townsend, where Maine and Non-Maine were similarly desirable places to relocate or buy villas, said the Cape Elizabeth real estate market seems to be finally slowing down.
“It’s definitely chilling. It’s probably because of the rise in interest rates, which has reduced the number of buyers,” he said. “This is usually the busiest time of the year.”