The Legacy Collection - Fall 2022

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What’s Next for Maine Real Estate?

We are once again so pleased and proud to share our most recent Legacy Collection with our colleagues and friends. We feel very fortunate to have shared in the collective real estate success experienced by many buyers and sellers in our beautiful state in recent years. This success has been predicated on a constant review of local, regional, and national real estate market trends, the overall economic climate, and legal and monetary policy changes. Our review now indicates that the Maine real estate market has experienced a sudden and dramatic shift in recent months, signifying the early stages of a reversal in the robust conditions that have been in place since May 2020. In fact, the Maine real estate market has been strengthening annually since 2010 and there are several elements feeding this moderation in both tone and trend. The most significant among the many influential factors are:

• Rapidly rising mortgage rates to near 7%, which reduce buying power

• High inflationary pressures on food, consumer staples, and energy, which are now competing with dollars that might have gone toward a down payment or monthly mortgage payment

• Record-high prices of homes for sale that preceded the rise in interest rates and were largely driven by demand and record-low borrowing costs

• Reduction of personal wealth from stock market declines that has negatively impacted liquidity and consumer confidence

• Buyer fatigue from searching for homes in low-inventory markets over extended periods of time

It is interesting to note that any one of the above factors has negatively impacted the markets in the past, but it is still unclear how the confluence of challenges will affect the property markets nationwide and in Maine specifically.

As many of you know, I am a “glass half full” person. I could argue that a dose of inflation is historically beneficial to hard assets such as real estate and it seems reasonable to think that homeowners may take the opportunity to sell real estate to shore up personal balance sheets. This increased supply would be welcomed by what continues to be a deep buyer pool for Maine real estate, and fatigued buyers would now have a greater opportunity in terms of increased time and available inventory to make a more slowpaced decision on their next purchase.

Our typical market metrics are showing some early signs of a slowdown. Inventory is growing, the number of days on market is increasing, and the selling price to list price ratio is moving back toward more normal ranges. Homes that were selling at nearly 104% of the list price just a few months ago are now averaging 99% of the list price. However, I want to emphasize that all of the above metrics are still quite strong by historical standards.

As long as the Federal Reserve is committed to raising interest rates to slow the economy and inflation, the real estate market will struggle to hold its current values. The Maine real estate market lags behind much of the rest of the country, but we are braced for a deepening of the negative trends coming from the larger cities and states. Unlike many other states which are experiencing net outmigration, Maine has become one of the most desirable states for many people, so it is hard to imagine that we will see a wholesale reduction in demand. With inventory remaining relatively tight and a continued influx of new and returning buyers, Maine will be among the strongest states in retaining its current prices and value proposition.

We have enjoyed a strong and uninterrupted market since 2011 in Maine, but there is little doubt that there will be a pause and, more likely, a further weakening across all market segments. That weakness will be moderated by locally strong demand and limited inventory into 2023 as there continue to be excellent buying and selling opportunities throughout the state. Should you be considering a repositioning of your real estate in Maine or New Hampshire, have any questions, or need assistance, please do not hesitate to reach out to me or one of our highly qualified agents. We are here to help!

Warm regards, Chris

KENNEBUNK

KENNEBUNKPORT

YORK VILLAGE

41 LINDSAY ROAD

Location, location, location! In the heart of York Village (and abutting the Mill Pond), yet off the main road, this charming home even has a large, level yard that’s perfect for gardening or recreating, plus an oversized 2-car garage. Walk to everything, including the hospital. 3 finished rooms on 3rd floor await your updates.

$850,000 | Virtual Tour: lpsir.com/41lindsay GINNY WHITNEY | 207.451.3093 | ginny@ginnywhitney.com

BIDDEFORD

692 SOUTH STREET

Ten acres of rolling fields and farm land. Create a small farm, live off the land. Own cattle, horses or both. Beautiful vistas from the top of the knoll. Possible subdivision. Create your country dream home. The existing farm house built in the 1870’s will need renovation or possible removal.

$420,000 | Video: lpsir.com/692south CHRIS STONE | 207.590.3425 | cstone@legacysir.com

YARMOUTH

POWNAL

MERRILL ROAD

SAINT

76 SEASMOKE ROAD

EASTWAY DRIVE

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NORTH HAVEN

SHORE ROAD

BRISTOL

ISLESBORO

ISLESBORO

00 MEADOW POND ROAD

Create a private estate or family compound on this exceptional and private waterfront property with ~1500 feet of water frontage and ~36 acres of which ~24 acres are with conservation easement. Gentle sloping land, bold cliffs, sand, pebble and rock beaches. Dock, mooring possible. Perc tested. Driveway and underground electric infrastructure in place.

$975,000

MICHAEL LYNCH | 207.558.3131 | mlynch@legacysir.com

ORLAND

81 GILPIN ROAD

146 acres of rolling land, rich with harvestable timber, granite deposit, open meadows, farm pond, wood roads throughout. Much of the land is elevated, presenting opportunities for beautiful views and subdivision. A custom-built 3-bedroom home is situated nicely off the road offering privacy and a pretty landscape.

$825,000

HEIDI STEELE | 207.542.4316 | hsteele@legacysir.com

ISLESBORO

M11L32 JETTY ROAD

This parcel of land is set on Jetty Road in the Dark Harbor neighborhood and is comprised of 3.1+/- acres and 322+/- feet of tidal waterfront on Ames Cove. Gravel beach and stunning rock formations along the shore. This property is just steps to the club and a short walk to the village.

$625,000

MICHAEL LYNCH | 207.558.3131 | mlynch@legacysir.com

ISLESBORO

M23L2P HERMITS POINT ROAD

Premier 12.45-acre parcel with 235 feet of waterfront in the Hermit Point Road community. This private parcel is nestled in the woods and has a cleared, sunny, elevated building area. Crescent shaped beach in a cove with clear water. Tennis court. Protective covenants.

$450,000

MICHAEL LYNCH | 207.558.3131 | mlynch@legacysir.com

BOOTHBAY

236 OCEAN POINT ROAD

Historic Victorian-style home in the heart of East Boothbay Village. Thoughtfully renovated while preserving the original architectural details. Outdoor living is maximized with an updated wrap-a-round deck and gazebo. Minutes walking to the East Boothbay General Store or East Boothbay Post Office in the charming maritime village of East Boothbay.

$698,000

STEPHANIE BRANCH | 207.751.4093 | sbranch@legacysir.com

HOPE

22 ALFORD LAKE ROAD

Great opportunity to be the first owner of a brand newly-built 3-bedroom, 2 full-bathroom Ranch-style home on a well-landscaped lot in Hope. One-level living with a wonderful open-concept floor plan. Hickory kitchen with granite countertops, large center island, all new stainless steel appliances, and gas range. Terrific custombuilt post and beam gazebo.

$439,000

BRIAN WICKENDEN | 207.975.9650 | bwickenden@legacysir.com

GLOBAL REACH

REAL ESTATE EXPERTS IN EVERY MARKET .

The Sotheby’s International Realty network currently has 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.

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.

MOUNT DESERT ISLAND & BEYOND

SEAL HARBOR

MOUNT DESERT

DEER ISLE

10 HERITAGE LANE

Nestled on the shore of protected Northwest Harbor the cottage features a dock, and waterfront deck overlooking the water. A living room with a wall of water view windows, primary bedroom suite, kitchen/dining area with fireplace, half-bath, and laundry room. The second level features two bedrooms, a half-bath and billiard room with water views. A detached garage.

$799,000

JANET MOORE | 207.266.0441 | jmoore@legacysir.com LAURA PELLERANO | 207.266.2941 | lpellerano@legacysir.com

THANK YOU FOR YOUR TRUST AND SUPPORT.

WE ARE #1

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 1/1/21 to 12/31/21 © 2021 Maine Listings.

INLAND TREASURES

FREEMAN TOWNSHIP

AGENTS BY OFFICE

PORTLAND

Greater Portland and Cumberland County 2 City Center Portland, Maine 04101 207.780.9800

KENNEBUNK Southern Maine and York County 150 Port Road Kennebunk, Maine 04043 207.967.0934

BRUNSWICK

Midcoast, Cumberland, Lincoln, and Sagadahoc Counties 141 Maine Street Brunswick, Maine 04011 207.729.2820

DAMARISCOTTA

Midcoast, Lincoln and Sagadahoc Counties 170 Main Street Damariscotta, Maine 04543 207.563.2775

CAMDEN Midcoast and Islands, Knox and Waldo Counties 46 Bay View Street Camden, Maine 04843 207.230.1003

NORTHEAST HARBOR Hancock and Washington Counties 6 Neighborhood Road Northeast Harbor, Maine 04662 207.780.8900

SERVING COASTAL MAINE AND THE NEW HAMPSHIRE SEACOAST