Maine Real Estate News

The Portland Chamber is looking for feedback regarding proposed changes of the Planning and Development Department and the permitting process. Major components of the revisions include:

Revisions to Section 14-526(a) of the City Code, Site Plan Standards.

Modifications to the development review process and procedures of Article V of the City Code.

Revisions to the City of Portland Technical and Design Standards and Guidelines.

Implementation of new development review tracking software.

This is a large and complicated undertaking and the Chamber has hired land use attorney Bill Plouffe to keep abreast of all changes and draft commentary as necessary.

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The sale of the former Jordan’s Meats property has just been completed. After nearly two years on the market, the new owners - Mark Woglom and Greg Kirsch – announced that they plan to build on the site “sooner rather than later”.

The new owners formed the company Old Port Hospitality LLC to make the purchase. They also own the Opeechee Construction company located in Belmont, NH. Although the terms of the transaction were not disclosed, it is believed the final price was significantly below the listed amount of $4.75 million.

Opeechee Construction has experience in Maine, including such projects as the AAA regional headquarters in Portland, Hampton Inns in Augusta, Bath and Ellsworth, the Comfort Suites in Biddeford, the Comfort Inn & Suites and Homewood Suites in Scarborough, and the Holiday Inn Express in Freeport.

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In a report released by The Washington Examiner, Maine is a national leader in the amount of permanently protected lands.

Currently there are 1.3 million acres of reserved lands as state and national parks or through easements on private land, which guarantee public access for recreation.

In addition, the public has access to some of the 2 million acres owned by private conservation organizations or preserved through easements, bringing the total to 3.3 millions acres.

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According to the most recent sales figures published by MREIS, single-family home sales in Maine sales increased 48.6% in November, compared to November 2008.

Additionally, the median sales price of $164,000 represented a decrease of 4.8% for the same period state wide.

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The National Association of Realtors (NAR) has recently released the results of its annual Profile of Home Buyers and Sellers. Below are some interesting statistics from the 2009 report.

The data is derived from over 9,000 surveys returned by buyers and sellers during the period between July 2008 and June 2009. This particular list focuses on home buyers.

Home Buying Statistics:

- 47% of all buyers were first time buyers.

- The median age of all buyers was 39.

- 83% of all first time buyers are under the age 44.

- 62% of all buyers are under age 44.

- 63% of all buyers had no children under the age of 18 residing at home.

- Buyers in the Northeast moved an average of 10 miles from where they currently lived.

- 90% of all buyers used the internet to search.

- 84% of buyers reported the photos to be the most useful information.

- The #1 action taken after viewing a home online was to drive by.

- 36% found the home they purchased online.

- Less than 3% found the home they purchased in a print ad.

- 77% of buyers purchased their home with an agent.

- 85% of sellers sold their home with an agent.

- 39% of the mortgages were FHA loans.

- 87% of buyers viewed real estate as a good investment.

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Across the nation the home market continues to improve and for the fourth consecutive month foreclosure filings declined.

Filings were down 1% in August, 4% in September, 3% in October and 8% in November. Total filings were 306,627 in November according to RealtyTrac, an online marketer of foreclosed properties.

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Thinking about replacing your old refrigerator or washing machine and helping the environment (and the economy) at the same time, you might be interested to know that Maine has received a $1.1 million federal grant that will provide rebates for energy efficient appliances.

In an announcement by First District Congresswoman Chellie Pingree, rebates of up to $75 will be available when qualifying appliances such as air conditioners, dehumidifiers, refrigerators, freezers, etc are purchased.

Old appliances do not need to be traded in. Consumers simply need to complete and mail in rebate forms with a receipt.

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Owners of the Maine Mall in South Portland, General Growth Properties, have been successful in restructuring their debt, pending Bankruptcy Court approval December 15th. In a new plan announced Wednesday $9.7 billion of debt has been renegotiated that should allow 92 of its properties emerge from bankruptcy protection by the end of the year.

According to Greg Cross, an attorney representing the largest block of secured General Growth creditors, lenders extended the length of their loans in exchange for full repayment, plus interest and bankruptcy costs.

General Growth Properties is the nation’s second largest mall operator in the country. During the last several years the company expanded aggressively and took on debt totaling $27 million. As cash became scare and short-term loans became due, the company was unable to finance its obligations and in April filed for bankruptcy.

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After nearly two years on the market, the former Jordan Meats plant, located in downtown Portland, is reportedly under contract. It was listed at $4.7 million.

Its current owner, the Procaccianti Group of Cranston, RI had planned to build a Westin Hotel and 97 luxury condos on the site, but scrapped that idea when the market took a downturn shortly after they had purchased the property. They had also considered other alternatives, but apparently none made financial sense.

Condo prices between $500,000 and $1,000,000 were envisioned, but it became apparent that Portland’s market for these types of high-end units was (and is) rather limited.

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On November 6, 2009, President Obama signed a bill to extend the tax credit for first-time homebuyers through June 30, 2010. The bill also expands the credit to others who are not buying a home for the first time.

Details:

The $8,000 first-time homebuyer tax credit, which was slated to expire Nov. 30, 2009, will be extended for contracts signed before May 1, 2010 that close before July 1, 2010. First-time buyers, who are in the process of closing now, no longer have to worry about qualifying for the $8,000 tax credit if they do end up closing after the Nov. 30 deadline.

The new legislation also increases the income limit for couples with income up to $225,000, a nearly $55,000 increase above the current level.

Buyers who already own a home are also now eligible for a tax credit and the purchase of a home. The $6,500 maximum credit will be available to existing homeowners who have lived in their current residence for five of the prior eight years.

The legislation does set forth several provision including, limiting eligibility for existing homeowners to homes worth $800,000 or less, as well as making both credits available only for primary residences, not second homes or investment properties. The legislation will take effect November 7, 2009 and is not retroactive.

A comparison of side-by-side comparison of the new credit is available at Tax Credit Extension.pdf

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