It's been a wild ride in Maine's real estate market and by all accounts, 2022 is on track to continue keeping us on our toes. The reoccurring message of this year's MEREDA's 2022 Forecast Conference was clear: MAINE NEEDS HOUSING of all kinds. Each speaker touched upon this issue, including annual conference presenter Brit Vitalius who stated, "We already didn’t have enough housing before the pandemic. There’s not enough rentals. There’s not enough homes." Ryan Fecteau, speaker of the Maine House of Representatives, who delivered the keynote address at the MEREDA, focused on the need for affordable housing in Maine, "There's a crunch, and we need to solve it..."
These messages had an impact on our Team. Reflecting on the presentations, here are a few of their takeaways:
BRIT VITALIUS, MEREDA PRESENTER:
Whether Brit is moderating an Eggs & Issues business forum, sharing exciting development projects on Places & Spaces, or addressing hundreds at Maine's most anticipated real estate conference of the year, Brit will always deliver an articulate, thoughtful, and easy-to-digest-with a-touch-of-humor presentation packed with smart analysis. We look forward to sharing his full presentation when the video is available but until then, here is a brief follow up:"I've always wanted to headline at the Civic Center! Seriously, it was just so nice to be back together with our real estate community and an honor to be one of the presenters. As we come up on year two of this pandemic, it was interesting to see the data and the anecdotes in the different sectors."
- Hospitality and retail are rebounding more than anticipated
- Office real estate is surprisingly steady and healthy
Residential and multi-families values have jumped by double digits in just one year.
All in all, Maine real estate has weathered this storm better than I would have thought at the onset of the COVID rollercoaster." Check out the slides from Brit's presentation HERE.
NOVA TOWER, BROKER:
INSPIRED: Not only did Speaker Ryan Fecteau reiterate the need for more housing, he addressed racism and classism in zoning laws and how these laws are historically designed to protect privileged neighborhoods. He emphatically called upon attendees to contact our representatives and voice our concerns, share our industry knowledge, and to step up and be leaders in our communities. This resonated with me.DATA-DRIVEN: The data is astonishing! The trends Dava Davins presented confirmed what our industry has seen in the single-family and condo market over the last year. Specifically, listings over 1mm dropped their average days on the market (DOM) to 10 compared to pre-Covid when listings over 1mm averaged 63-74 days DOM. This data represents such a dramatic change to the local market and impacts how I navigate the buying and selling process with my clients.
IMPACTFUL: The numbers within the multi-market Brit shared were unexpected and so valuable to know. The Westbrook multi-market alone went up by 43% last year. This probably had us all thinking the same thing, "Why did I not buy a Westbrook multi in 2020?!" I was able to share this information with a multi-client who was unsure about buying in that area. Now that he is better informed, he is definitely shifting his focus.
VALIDATING: The information learned at MEREDA strengthens and validates my understanding of the economy and what I am experiencing in my work. Presenter James Marple, TD Bank Senior Economist, always brings clarity to the topic of our region's overall economic health. His clear insight informs conversations I have with clients who express concerns over an unsure economy and how a sudden economic downturn may affect the real estate market. The Clients are grateful when I can pass on information that better informs their decision-making process.
CHRIS DAVIS, BROKER:
Always eager for new learning opportunities, Chris left the conference energized, inspired, and excited for Maine. On his way home, he jumped on his social media channels to share his immediate takeaways with his followers:
GRATEFUL: There are so many smart people working in development, real estate, and public policy. A special shout-out to Paula Mahony and her team for their incredible execution of a successful hybrid conference and to Brit Vitalius, as always, for his incredibly clear insight.
SKYROCKET MARKETS: The Lewiston-Auburn rental market skyrocketed in the past year, and, in that same region, median home sale prices rose 35%. Another game-changer -the local cannabis market: this industry is exploding, "they can buy whatever they want."
AWARENESS: We need more housing. Everyone deserves a safe home. This is an issue we need to keep working on and it is going to require public and private funding, partnerships, ingenuity, and creativity.
KAYLA DUGAS, BROKER
CLEAR & CONCISE: Speaker Fecteau left a strong impression on the audience. His message of "we need more housing" was something we knew but to hear about his clear and thoughtful proposals to address the problem gave me tangible ways to make a difference through my work.
EXPERT ANALYSIS: As always, Dava and Brit delivered solid insight based on statistics. Dava shared the median sale price of single-family homes in Maine was $415k and 35% of buyers were out-of-state. According to Brit's data, out of 167 multi-units sold in Portland, only 21 were under $500k. These stats reinforced what I am seeing in this market and I am already having these conversations with my clients but adding data validates my experience.
Thank you again to our Team for sharing their thoughts. We hope this year's conference left you inspired, energized, and better positioned for the year ahead. You can read MaineBiz's full recap HERE.
See you at #MEREDA2023!
