Friends, happy summer!
Hope you are well and enjoying these lovely days. Shoot me a reply with what’s new with you and your family, what you’re excited about, and adventures you’ve been on this summer. I’ve met so many wonderful people over the years and enjoy keeping in touch! Here’s what’s new with me, my family, and the market.
Family
Amy, Maddie, and I are having a great summer. It’s nice to be back to this new normal and a return to sending time with family and friends. From Amy’s triathlon competitions and a daddy-daughter trip to the White Mountains, to time at our lake house and summer events in the city, the summer has been special.
The Current Real Estate Market
Every day I’m asked about the impact of the Federal Reserve’s recent rate increases. I start with a few caveats.
- All real estate is local and market strength varies depending on type of property and location.
- We are clearly in a start of flux and uncertainty. Predictions are hard to make in a rapidly changing market.
- The best advice will come from an accomplished and very active agent who specializes in your location or property type.
Nevertheless, here are my thoughts. It might come as a surprise, but the overall real estate market is nearly as active and competitive as it has ever been, and the Fed’s actions have had little effect as of now. In June, when rates were adjusted for the first time, there certainly was a pause.
Buyers
Many buyers put their search on hold after the first interest rate increase. Those that didn’t felt emboldened to offer below asking prices and require inspections; neither of which were usual during the seller’s market of the past two years. Some were able to purchase at lower prices, but many missed out as buyer activity quickly increased. Why the return and continued tight market? While we can’t assume for all buyers, we can share the reasons given by our current buyer clients.
- This is the first of several rate hikes, and we should buy now before they go higher.
- We still want or need a new home regardless of higher rates.
- We have a sizable down payment to help offset the effects of higher rates.
It’s NOT a buyer’s market in Portland - YET. Driven by still historically low rates, fear of higher rates to come, in-migration from pricier markets, continued work from home, and very low inventory, we anticipate more of the same for a while. One bright spot; prices are stabilizing. So, while the market remains tight, buyers may not need to bid way over asking to secure a property.
Sellers
There is a tremendous amount of market uncertainty. While playing the role of fortune teller is a fool’s errand, there are several factors to consider if you are planning to sell.
- The market is clearly in a state of flux.
- We have not seen major price drops yet.
- It’s still a great time to sell.
- Evidence suggests we have reached the peak. Prices have stabilized and might begin to drop.
- It’s important to start at a realistic listing price.
Over the last several weeks sellers have said to me, “I missed the market or let’s pull the house off and wait”. I tell them that the market is still very active, and buyers are still looking, offering, and putting homes under contract at near record setting prices. I also share that given widespread economic and geo-political uncertainty, unless they can wait to sell for three or more years, now is the time to list. And if their home is on the market already, they should consider a meaningful price drop.
Sellers should keep in mind that home values throughout the state are nearly twice that of pre-pandemic levels. While prices have stabilized and could drop 10-20% from the peak, many will still sell for nearly twice what they could have two years ago. This is a win and waiting for more could take a long, long time.
Giving Back
Our signature charity event, the Portland Kids Duathlon is in its fifth year! This year we raised over $13,250 for the Foundation for Portland Public Schools, making a total of $48,000 over five years. Thank you, athletes, families, volunteers, sponsors, and spectators, for another successful event.
This is one of the most meaningful things I’m lucky to be a part of each year. My favorite part is being the emcee and turning the mic over to our youth. I can assure you that wisdom, clarity, courage, and kindness come in small packages. I leave each race inspired, humbled, and believing in the power of community.
2022 Race Highlights
If there is one thing we can agree on in these strained and strange times, it’s that adults need to tap into the magic of youth. Anyone that’s spent time with kids witness their wonder and innocence. Childhood, the time before the dark corners of the world come into clearer focus. Do you remember those times? When I’m around these kids, I do.
They inspire me to do more, give more, be more, be better, be kinder, be nicer, set a better example, and leave the world a better place. Special recognition for the person that brought this idea into being and makes a massively complicated race come off like clockwork. Amy Landry you’re amazing!
Save the date for July 23, 2023. More info and videos at the race Facebook page and details at www.portlandkidsduathlon.com.
Property Tax Relief
Did you know about the Property Tax Stabilization Program for Senior Citizens? This program freezes a senior's real estate taxes going forward based on the base year tied to the application.
To qualify is pretty simple.
- Be 65 or older
- Be a permanent resident
- Have owned your home for 10 or more years as your permanent residence
- Provide proof of residency
- There is no income or asset limits to participate
Contact The Maine Revenue Services Property Tax Division at 207-624-5600 or visit their website.
Solaris
With the climate crisis in such painful and plain view, I’m so proud of the team behind the forward-thinking condos of my latest development, Solaris. We call them eco-lux because you get all the green without sacrificing fit, finish, and the amenities. ONLY 1 Unit Left. Special recognition to the team at Great Falls Construction and lead project manager Aaron Bourassa. I can’t say enough good things about their work and communication.
The Mark
In the coming weeks you will hear more about an exciting new condo development in Southern Maine. Located on the coveted and prestigious Cumberland Foreside and just 15 minutes from downtown Portland, these units are just what buyers want and have had a hard time finding. These condos represent a remarkable value and we expect to sell out in record time. Visit themarkcumberland.com for more info and share with those you know looking to right-size, downsize, or for the perfect summer home.
Invest Local / Invest Using Your IRAs
Many of you know that I have been in the development world for as long as I’ve been in real estate sales. I have put together many investment groups over the years with great success. These are typically 3-7 people coming together to invest between $100-$500K each in a local development project. Some move funds from savings while others take advantage of self-directed IRA’s. This novel approach allows you to move money within your retirement portfolio, from Wall Street to Main Street.
We have heard from our investors that they LOVE to see their money at work in their community rather than numbers on a monthly statement. I have some VERY EXCITING opportunities coming up, so if you want more information, reach out directly at 207-939-0185 or tomlandry@benchmarkmaine.com.
Your Mother's Keeper - A True Real Estate Story
A true story about making sure your family, friends, and neighbors make better decisions when it comes to one of the most important decisions in life, the purchase and sale of real estate.
(1PM - a text from a friend)
“Tom, I just referred a friend who’s widowed, older mom wants to sell the farm for a pittance (maybe to a neighbor). My friend and her husband are concerned about her lack of savvy about the current real estate market and desire to handle it herself. I said you need Tom Landry of Benchmark to show up, talk about his life growing up on the farm, his wonderful Mom he loved to pieces, and the value of these properties...”
(7PM - that night - a call with the daughter of the seller)
“Tom, I realize this is very, very last minute but my mother is scheduled to meet with her neighbor tomorrow and we’re worried that she is going to commit to a sale or sign documents. Could you meet with us tomorrow morning first thing?”
(7AM – the next morning - a meeting with the daughter and seller)
We discussed the seller’s goals, the neighbor’s interest, the market value of the property and formed a game plan for me (not the seller) to meet with the neighbor. Out of this meeting I received this text from the daughter:
"Yes, it was wonderful to meet you and I feel my mother is in good hands now. Thank you. She is notifying the neighbor."
(9am – 2 days later - a meeting with the potential buyer)
We met, toured the house, and I shared the asking price and the seller felt more comfortable having me help. Ultimately the buyer chose not to purchase.
Lastly, keep in touch.
If we're not already connected on social media, let's be sure to do that. I'm most active on Instagram and Facebook. You can follow Benchmark on both platforms as well. I also have a video blog at homewithtomlandry.com where I talk about all things real estate.
All the best!
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