Cash Buyers

It has been about four years since the collapse of the local and national housing market. Many of the southern and western states where speculation was rampant, have suffered terribly and it may still be several years before normal activity returns. Measured on a percentage basis, Maine and New Hampshire’s participation in the housing bubble was not as great as in other states. However, there were plenty of people who purchased homes who probably should not have and subsequently, have lost their properties. And the economic uncertainty led people to concentrate on maintaining their current homes, rather than investing in new ones.

The mix of foreclosures, the slow housing market and the poor economy has led to reduced prices. I have been waiting for the ‘market’ to realize that there are real bargains available. Sellers, if they are not underwater, should understand that they can take far less on their current home and more than make up for it when they purchase their next one. Banks, with a large backlog of foreclosed homes on their books, are beginning to show greater flexibility on short sales.

So, I am not suggesting that I know where the bottom of the housing market might be. But it appears from my observations that there is a sense that if we have not yet hit bottom, it can’t be much lower. An article in yesterday’s Wall Street Journal confirms that bargain hunting is going on now in many other cities. The story, Cash Buyers Lift Housing, can be read by clicking on the link.

Since most trends come to Maine a little slower than other places, I wouldn’t be surprised if such Bargain Hunting picks up around here this spring and summer. If you are looking to see what bargains might be available in western Maine, feel free to visit Kezar Realty.com to search all available properties.

About kezarlife

I am a year-round resident of Lovell, owner of Kezar Realty (KezarRealty.com) and enjoy the variety of experiences that living in western Maine offers. Numerous lakes, ponds and mountains provide the opportunity to enjoy the outdoors every day. Married to Rondi we have two children. Ben is a Sergeant in the US Marines and with his wife Cassandra, son Jackson and daughter Reagan, live in Virginia. Ben's most recent deployment was to Afghanistan. Anna is a graduate of Fryeburg Academy, has studied in Beijing, China as well as Taiwan and now attends Hunter College in NYC where she is enrolled in their Chinese Flagship Program. I am active in many local organizations including the Charlotte Hobbs Memorial Library, Lovell Historical Society, Old Home Days, Lovell 5k Run, the Gasping Gobbler, the Tour de Lovell and the Brick Church for the Performing Arts. I also serve as President-elect of the Western Maine Board of Realtors. Please visit www.KezarRealty.com for up-to-date real estate listings and information on western Maine! Stan Tupaj
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2 Responses to Cash Buyers

  1. Jim Rowe says:

    Good WSJ article. I agree, there are signs the market is slowly starting to turn.
    Last year, one of my son’s friends sold his house in Portland and moved to Ft Lauderdale. Bought a nice house there for under $100,000.
    I spent a week in Ft Lauderdale late last winter and checked out the housing market. It was scary to see so many houses available. Pace in Lauderdale too fast for me, but would consider Ft Myers, where we have good friends.

    • kezarlife says:

      I have been telling a number of sellers that even if they accept less for their current home, the buying power that they will have when looking for their next house will more than make up for their “loss”. But some sellers cling to a value that was appropriate several years ago or they need a certain amount of money to pay off the mortgage.

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