Fresh lobsters and more than 40,000 acres of wild blueberries are two of Pine Tree State’s best-known exports. However, in recent years, turning to Augusta, Maine, realtors for a successful real estate investment has also grown to be a fantastic prospect for investors. The average home purchases price in Maine has increased significantly in recent years, reaching five-year highs for single-family and multi-family properties. This price increase is due to several factors. The demand for real estate in the state has skyrocketed due to its above-average population increase over the past ten years and its built infrastructure.
Maine has only 1.34 million residents, making it a small state, but its population has increased by around 2% since 2010. Statewide growth is outpacing the average for the country. Less than 1% of the increase occurred throughout the same decade. Due to the state’s smaller general population than other northeastern states, many major construction firms avoid developing residential areas because they can’t scale their operations there.
Independent developers can succeed in new construction projects in more attractive areas, nevertheless, if they supply the supplies and workforce. Maine’s regional real estate is especially advantageous for long-term investors looking for rental homes.
Real estate agents are the finest sources of information about where in Maine to invest in real estate. To assist you with your real estate transaction and to act as your advocate, locate knowledgeable realtors in Maine.
Portland
Due to the same factors that have driven expansion throughout Maine, the Portland metro region has experienced phenomenal growth in the real estate sector. Home values have risen due to the restricted supply and explosive demographic growth. With a population of 65,645, Portland is the biggest city in Maine. The median household income in Portland is $71,913, which is significantly higher than the state’s median household income and suggests that the area has more purchasing power than the rest of Maine. Real estate investors should know these figures since average house sales and the local economy’s health significantly influences rental prices.
Portland’s median house sale price will fall marginally from January 2021 to $432,500 by January 2022. This is a market adjustment based on the city’s exceptional real estate growth in 2020–2021 when the median home purchases price stayed close to $500,000.
The region’s current median house sales price is far higher than in 2020 before the purchasing frenzy started. Maine is likewise feeling the same correction that the rest of the country is. Investors can, however, be sure that projects will continue to be steady and highly regarded.
In Portland, Maine, residences frequently sell for more than what was originally listed, with more than half of the properties up for sale doing so. In contrast, only 2% of recently sold properties in Portland had asking prices below the actual selling price. Investors can take advantage of a robust market and discover chances for lucrative real estate deals with the help of external funding. The fastest-selling properties sell for about 9% more than the asking price and do it in only 6 days, according to the average number of days it takes to sell a home. Basements, tall ceilings, and breathtaking views are features of the most expensive homes.
Building contractors have an advantage over other real estate investors because they can modify their plans to suit the market. You may enhance the sales potential of your property and provide the maximum possible return by financing your project with a new construction loan and including these desired facilities in the building. One of the state’s best rental markets is Portland, which real estate investors should consider when buying rental homes.
56% of locals rent their residences. As a result, renting out the properties you’re interested in is simple. This area now has one of the highest average rentals ($1,577), slightly higher than the state average. Portland real estate is renowned for its accessibility to major tourist destinations, affordability, and safety.
Lewiston
Lewiston is a far more affordable entry point for new real estate investors and those with less money to invest in a project. The median house sale price in Lewiston is an important factor to take into account for fixed-income investors and renters searching for their next project. Lewiston is Maine’s second-largest city, with a population of just 36,501 and a median income that is lower than Portland’s. This has a positive financial impact on investors.
A strong and continuous increase, typical of many Maine real estate markets, was seen in the region’s median home purchases prices, which rose 27% year over year to $235,000. Lewiston saw a 40% rise in home purchases in January, with 35 residences selling. Also noteworthy is that residences only remain on the market for an average of five days, two fewer days than the previous year. This kind of sales frequency is advantageous for investors trying to flip a house, complete projects fast, and pay off their loans to optimize returns.
Furthermore, 68% of home purchases above the asking price, highlighting the sellers’ financial stability in the current market. Renters can afford the average monthly rental cost of $900, thanks to an increase of 16% from the previous year. The fact that 77% of Lewiston residents rent rather than own their homes makes this issue much more important for rental investors. Lewiston is among the top locations in Maine for rental property investments due to the high value of investment homes.
Bangor
The third-largest city in Maine and an excellent prospect for real estate investors is Bangor, which is somewhat smaller than Lewiston. The town of 32,403 people is comparable to Lewiston in that it is less expensive and has a similar growth trajectory. For developers wanting to finance brand-new construction projects, it is one of the most robust major real estate markets. Average sales prices are increasing due to sustained demand, and it’s simpler to obtain affordable land than in the first two cities on the list.
The median sales price of a home has increased by 32% to $217,000 since last year. The stability and rapid expansion of Bangor’s real estate market were highlighted by the 38 residences sold in January, a 23% rise from the previous year. With an average of 21 days on the market, about 48% of home purchases for more than the asking price.
Bangor’s low entrance barrier and brisk real estate market provide obvious advantages to investors wishing to flip a house because they allow them to invest a small amount of money and swiftly exit after the task is finished. Knowing what Bangor house purchases want is crucial for builders and contractors planning their upcoming projects. Homes with an outside patio, fenced yards, and a large basement sell more quickly and for significantly more money on average. An advantage over other real estate investors that new house builders have is the ability to build to market demand.
In Bangor, the average monthly rent increased by 15% to $788. Whereas less than half of the population rents rather than owns a home, Lewiston and Portland offer more reliable rental investment prospects. However, investors adopt the BRRRR (Buy, Rehab, Rent, Refinance, Repeat) approach to diversify their portfolios of rental investments. In Bangor, look for affordable real estate if you want to make money investing.
Saco
With a population of 20,849, Saco, a tiny yet contemporary city in Maine, has had a population growth of 13% over the last ten years. This population increase is significantly higher than the national average. It demonstrates why real estate investors are drawn to the Saco area. Due to the city’s proximity to Saco Bay and the Saco River, possible waterfront and beachfront properties immediately increase the value of the landlocked real estate market.
The city’s median house sales prices are comparable to those in Portland since they have recently experienced a minor fall due to a market correction. Currently, Saco’s median house sale price is $362,500, which is significantly less than it was a year ago but will reach a five-year high in 2020. In 31 days, on average, home purchases, and 63% of those sales are above the asking price. The fact that the sellers control the investment opportunities makes this statistic crucial for investors trying to flip real estate.
Homes purchases in high demand can sell in an average of 5 days for 10% more than the posted price. The most popular features of homes in this neighborhood right now include views, fireplaces, and high ceilings. Builders should consider including these features in new building projects because the most sought-after homes sell quickly and for a lot more than the asking price. This can boost the projects’ value by 10% or more.
Saco has the highest statewide median rent ($1,726). However, it’s crucial to remember that only 34% of inhabitants are renters. Beach houses for short-term rentals are a great option for investors searching for a great rental property, even though rents are still lower than in other locations. Real Estate Investors Should Consider Using Short-Term Loans To Finance Their Saco Real Estate Buying Strategy Because These Short-Term Rentals Are In The Best Locations, Are Financially Beneficial And Can Increase Your Return On Investment.
Beach at Old Orchard
A hidden gem for Maine real estate investors is the small coastal hamlet of Old Orchard Beach. Even though it has the fewest residents (8,862), the city has expanded by 3% during the last ten years. Investors have options based on beginning money and chosen real estate entrance strategy in this close-knit neighborhood, which offers more expensive beachfront properties or more reasonably priced homes in the interior. The area’s median home purchases price increased by 27% to $372,500Â from the previous year.
In such a small community, the average time a house is on the market is only 31 days, which is exceptionally short. In the metropolis, desirable residences can sell for about 7% more than the asking price in just 5 days after going on the market. This provides the real estate investment advantages required to advance projects swiftly and move on to the next project as soon as possible.
According to listings and final sale prices, the most desirable real estate in the area are home purchases near the golf course. Although a developer can’t bring the neighborhood golf club to other sites, it will assist you in comprehending the kinds of buyers that intend to live in Old Orchard Beach and tailor your project to their needs. You may plan and maximize your final sale price by thoroughly understanding the different types of homebuyers in the area where you are investing.
The average tenant in Old Orchard Beach pays $990 per month, which is less than the national average. But in coastal cities, the short-term rental market is increasing. The normal starting pricing might make them valuable for investors searching for a top rental property. Like in Saco, oceanfront real estate can be a great investment for long-term rental units, but it can also be quite lucrative for vacation rentals. Old Orchard Beach is a wonderful place for investors wishing to increase or diversify their investment portfolio using short-term loans.
Maine’s real estate market is among the best in the nation for stability. A market correction, not a market crash, is to blame for certain price decreases from a year ago, as seen by average prices significantly higher than what Maine believed was feasible five years ago. Despite these brief lulls, much of the state is still seeing rapid development surges that have yet to abate in the past five years, making it the best place for real estate investors.
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