Positive Trend in 2016 Seen for Maine Real Estate
The Portland Press Herald reported on the surging real estate market in the state of Maine and its future condition for 2016. The Maine Real Estate and Development Association (MEREDA) index went up 4 percent at the end of the summer, in contrast to the figures recorded by the end of 2014.
The index covered residential as well as commercial real estate markets, with nine measures monitored for each sector. Prior to the release of the report on the state of its property market, construction activity was also monitored and made part of the indices. Overall, these indices were considered a satisfactory measure of the broad scope of Maine's real estate market.
Established in 2006, the index climbed up 100 points during Q3 last 2015, narrowly missing the baseline. This marked a downturn from 120 points, which was recorded late 2007, as well as in Q2 for 2014.
Commercial real estate was seen as the most volatile of all components measured by the index, but was considerably strong as of 2015, coming off all-time highs for 2014.
Michael O' Reilly, MEREDA President, said, "Commercial real estate activity continues to be a strong driver for the positive index trends, but, for the first time, residential activity was a big contributor as well. Given the relatively small scale of the Maine real estate market, larger commercial transactions are still having a big effect on the index," as stated in the same report.
On the other hand, residential real estate went up 9 percent while construction activity stayed flat over the past two years.
In a previous blog post from the Maine Home Connection, property demand had stayed strong for 2015, although multi-family sales went down slightly that year, with only 149 units sold. With a median selling price of $249,900, this reflected a 5 percent increase as well as four consecutive years of high median sales prices.