Ogunquit, Maine Market Conditions

December was a very quiet month for the Southern Maine Real Estate sales. Most buyers were concentrating on holiday spending and not on home buying.

As of January 2nd, phones began ringing once again. Buyers are searching the internet and doing their homework before calling the realtor. Property reports from Realtor.com are looking very promising for the up and coming season. Buyers are searching, but still waiting to take the next step wondering if prices or interest rates will come down any more.

Some buyers are still waiting for property prices to drop in Southern Maine. It is my prediction that the properties that are still high in demand and few in inventory, such as investment properties and properties that are located near the beaches and/or tourist areas will not come down much more than five to ten percent of the asking price. Reports have shown that there has been a decrease in property prices about ten to fifteen percent for those properties that are located inland, which are less in demand and have a higher inventory.

Many buyers that were thinking of purchasing their second home last fall, but wanted to wait until spring to prevent from carrying the mortgage through winter months, have since decided to spend on home improvements instead of home buying. I am hearing this from many buyers because of the uncertainty of where the real estate market is going.

Although, some buyers are spending on home improvements instead of home buying, there are still many buyers that are looking for that second "Home Sweet Home" in Southern Maine to escape to. This leads me to believe that the real estate market for the spring of 2007 in Southern Maine still looks very promising.