July Market Update

We are currently in a relatively slow summer market. We thought things were ramping up but we are finding that the market is a bit stuck. There are definitely buyers still buying but not as many. Homes are getting anywhere from zero - 2 offers unless it is the type that the market waits for… like a single level condo on Munjoy Hill, or a special single family in Deering Center. And, if sellers overprice, the buyers are speaking back by not buying it. In Portland, the “sold price per square foot” decreased in the last month and so did the amount that sellers are getting over asking price (although they are still getting over asking by 102.6%). The days until a house is under contract is still 5-6 days so the market is moving fast as agents are reluctant to put offer deadlines on their properties with fewer buyers buying.

However, we are also starting to see some good signs that rates may ease a bit in the near term (with a good Consumer Price Index report out today, July 11th).

New National Association of Realtor rules will start in August... How these rules impact you:

1. We have to have a signed buyer’s agreement BEFORE seeing any properties. This is mandatory and there are penalties for not doing it. So no more window shopping :). The purpose of this is so that all parties are clear on compensation before any homes are seen. We will walk each buying party through how it works.
2. The language we use around commission is changing. “Buyer’s agent commission” will no longer be offered by sellers. It will now be a “contribution” towards the buyer’s closing costs which may or may not include commission. Essentially, the seller can choose to offer money to the buyer to help defer the commission costs from having a buyer’s agent.
3. Generally, sellers are understanding that in order to attract the buyer’s they want (knowledgeable and reasonable ones!), they need to offer a contribution towards buyers that can go towards having representation. The alternative is basically just a FSBO - which a certain percentage of people will always lean towards.
4. Right now, in the areas in which we work, we aren’t seeing many changes. Sellers are generally offering around 2.5% and at least 2%. However, I do think things will shift in the more rural parts of Maine so let’s talk if those are your areas!