Jim_b, Home Buyer in Old Orchard Beach, ME

I'm considering a second home in Old Orchard Beach. Is this a good time to buy? Will prices continue to stay down with a weak economy and high?

Asked by Jim_b, Old Orchard Beach, ME Sun Feb 7, 2010

unemployment? Or will the coming summer months drive prices up? Is there still upside in this region or have prices peaked?

Is Old Orchard Beach a good area to consider for a second home for a young family? Are home values expected to appreciate in the long term?

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Answers

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Statistics for Old Orchard Beach from the MLS as of 2/14/2012
single family home priced between $100,000 to $500,000
2/14/2011- 8/14/2011 30 sales with median price of $167,700 & 115 days on the market
8/14/2011-2/14/2012 27 sales with a median price of $202,000 & 112 days on the market

Can't tell you what the future will bring; however interests rates are at their lowest in years
Sellers have reduced their prices often less than market value.


There are
0 votes Thank Flag Link Tue Feb 14, 2012
Hi Jim,

I'm sure you may think I am biased, being a Real Estate professional and all, but I wanted to try and answer your question as best I can. I may be in the business, but I am also a skeptic. I,myself lost 30k on my home when I had to sell 2 years ago, which at the time was my whole life savings. Without being an economist (and I'm not even sure they know) what I can tell you is;

-Prices have stabilized in the area, and listings are moving much more quickly in the past few months than anyone has seen in a while - especially in the >250,000 range.
-I live in OOB. I am astonished by the influx of people from other states moving here, as the area offers an exceptional value for people as compared to other New England States.
-The greater Portland are is progressive, which is not the case in many other New England cities, small or large. many companies here (IDEXX for example, Wright Express, TD Bank) are hiring, offering bonuses, raises, etc- and relocating people from out of area. This can only be good for short and long term home values.

I wish I had a crystal ball to determine if the homes purchased this year would appreciate within a few years. Without one though, I can only hypothesize that this area is a wonderful place to invest, based on the observations I have been able to make. Enough so, that between the credit, recent months activity and general economic knowledge, I will surely put my own money on it, and hope for the best.

Good luck with your endeavors. if you ever want to look at properties please give me a call at 207-423-9796, or email michellesellsme@gmail.com

Best,
Michelle
0 votes Thank Flag Link Wed Feb 17, 2010
We have the $8k bribe now. It will go away on 4-30-2010. Expect many buyers to stop looking once it goes away.

This is going to be a Unique real estate year for sales. heavy until may 1. Then a big sucking sound as many buyers retreat.

OOB has often been mentioned in the past as a good place to be up here in Bangor. If it is a good place to buy as an investment, you will have to decide that for yourself.

Interest rates will go up when the federal reserve stops buying mortgage backed securities in March. It is expected to be 1/2 to 1% by many. Some say it could be much much higher.

For a 1 year house price forecast look below.
http://www.housingpredictor.com/maine.html

If you are looking at this as a second house you will need to rent it out. Look below. It is designed more for someone who wants to buy a house yet it also will help you to see if you will make or lose money. The only thing is you have to add more. Money for 1-2 months a year being vacant and more for repairs come to mind.
http://www.trulia.com/blog/dan_chase/2010/01/does_it_make_mo…
0 votes Thank Flag Link Sun Feb 7, 2010
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