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July 24, 2009

Home sales up, prices still down

By Mainebiz News Staff

Home sales in Maine are on the rise, but average home sales prices are still down compared with last year.

In June, 1,133 homes were sold, a nearly 14% increase from the 996 homes sold in June 2008, according to a press release from the Maine Real Estate Information System Inc. It's also an increase over the 877 homes sold in May. The median sale price in June was $170,000, a 9.5% decrease from last June's average sale price of $188,000.

Nationally, existing home sales rose only 0.2%, and the median sales price dropped 15% to $181,600 from the same month last year, according to the release.

Reader comments

From Bob Strong (Wed 7/29/2009 1:35 PM)

In response to Kenneth Smith's comments: As reported in the article, the data is uninfluenced by seasonal fluctuations. The comparisons of data are for specific periods of time in consecutive years. If the data were presented as a comparison between the first quarter and the second quarter, that would infact be meaningless information. The Maine Real Estate Information System presents it's press releases as rolling quarters and compares the quarters of the current year with the prior year. That is the most representative comparison that can be made.  

From Kenneth G. Smith II (Fri 7/24/2009 2:23 PM)

Are we surprised? Or just so affixed to our computer screens, blackberries and cell phone that we forget real estate is Seasonal!

If home sales did not increase we would be floored, desperate and start to panic again. Analysts refer to the time in 2006 when 7.2 million housing units sold, but historically the number was around 5.5 million units. We should be relieved that the market is following historical selling patterns.

Sales should be up in July, August and September; but what are we going to do when activity falls off for the seasonal 4th and 1st Quarter period? The median sale price should be reversing itself and values should continue to stabilize. But again, this is all within historical patterns for real estate.

Are we that desperate for a news reporter or an economist working for the National Association of Realtors take on the market?

There are fundamental issues that remain in the market that still have not been addressed by the government or major financial institutions. There are alternatives that can restore stability to the markets that are not being addressed.

Do not be surprised in August to see Sales Activity grow 2.5% to 3%, August 2.0 to 2.5% and September barely over 1%. That is real estate and that is what we need to report.

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