Maine’s Housing Market Is Going Bananas With Out Of State Buyers
I feel like I've personally bought and sold houses during all phases of real estate markets over the last 15 years or so. When my wife and I lived in southern Maine, we started looking before the bubble burst back in 2007-ish, and was put off by the high prices. At the time, southern Maine was becoming trendy, but nothing like now.
When we finally bought a house when the market kinda crashed, we bought hastily because we were afraid the crash wouldn't last that long. In hindsight, we should've waited another year, then we would've been swimming in cheap houses. Of course instead, the crash continued and we got screwed beyond belief selling that place.
Coming to Bangor, the market was still iffy, so we got our next place for a great deal. When we sold it last year and moved, the market was perfect. We got way more than we paid for the place, and then scored a sweet deal on our current house. But what's going on right now is downright weird, bordering on scary.
Home sales in Maine right now are absolutely on fire. And not necessarily in a good way. Out of staters are coming in droves. Either fleeing the coronavirus, or looking for 'cheap' property, or whatever, but they're often paying waaaaaay over asking price. But that creates two problems for us local folks.
1) All this out of state money is jacking prices way up. As fast as a house goes up, there are multiple offers often going above asking price. then they're willing to forgo inspections and all sorts of other things, making it quicker and easier for the seller. 2) It's caused the inventory to just disappear.
Houses are lasting days, sometimes even only hours on the market. According to WGME - TV13, a few years ago, out of state folks accounted for about 10% of home sales in Maine. Right now, it's over 30%. The lack of inventory and high prices make it enticing to sell a home, but then nearly impossible to get into another.
Who knows where it'll head from here, but I wouldn't list your home without a plan. Last house we sold went so fast our heads were spinning, and things were easier then. On the other hand, if you do have a plan, this is your time. Make that paper!!! This won't last forever, but take the money, and.....stay.