A Look Back: 10 years ago, numbers in conflict
A decade ago, amid the Great Recession, the “Capital Update” feature in Mainebiz, written by Mal Leary, put forth what seemed like conflicting accounts of the real estate market. On one hand, the number of foreclosures jumped to 260 for the second quarter, up from 186 a year earlier. At the same time, new mortgages skyrocketed to 3,583 from 2,222 the year before. Why the conflicting economic indicators?
Leary called on the dean of the Maine Business School, John Mahon, to explain. First, he said, foreclosures might have been worse except that many mortgages are held by local banks and credit unions, which tend to be more patient in working out payment terms. Second, Mahon speculated that the spike in mortgages was from investors looking for “bargain basement” deals. “Part of it is people selling their homes because they can no longer afford them,” Mahon said.
Fun fact: In May 2009, the first IMAX theater opened in Maine, the Cinemagic & IMAX Theater in Saco. The timing was critical. In an ad in a subsequent Mainebiz, PM Construction Co. said keeping to the timeline was “paramount” on this project, pressed by the premiere of the new “Star Trek,” which was released May 8 of that year.
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