Portland Maine Real Estate Report 1st Quarter 2016
Spring is typically the busiest time of year in any real estate market but to say we are busy in Portland ME would be an understatement. The market has been improving over the past two years and now, along with much of the country, we are seeing activity that reminds us of how things were prior to 2007. The one challenge that appears to be universal is a lack of inventory. Tight inventory levels + a large buyer pool = multiple offers and inflated prices. Some areas are seeing up to 15 offers on one property! I recently wrote a post on “How To Win A Bidding War” that talks about putting your best foot forward right from the start in a market like this. You typically only get one chance to shine, within your bounds of course.
Let’s talk numbers and see how well the Portland market has performed during the past first quarter. There was a total of 190 single family homes sales from Jan 1 – April 15th, 2016 with an average list price of $279,724 and sold price of $273,227. The sales/list price ratio was an impressive 98.36% which is 1% higher than the first quarter of 2015. The biggest change from this time last year is the average days on market of 58 from 71. We saw 56 of the 190 sales this past quarter go into contract in 7 days or less, many on the first day. This is great news for sellers and hopefully, more will have faith in the market and list their home for sale.
The Absorption Rate for Portland and South Portland (the rate at which homes sell in a specified period of time) is currently 2.4, up slightly from the fourth quarter of 2015.
We determine this rate by dividing the amount sold properties within a specified period of time, in this case, 190 by 3 (months in the quarter) and get 63.3 homes sold per month. Lastly, divide the number of competing properties on the market of 155 by 63.3 and the rate is 2.4. Based on the data this is how long it might take to sell through the inventory at the current pace.
If you would like to discuss market statistics or the absorption rate for your area, please feel free to contact me directly on 207.805.6007 or MyMaineAgent@gmail.com