One area that had rising real estate prices in 2008 was Bangor Maine where the median price of a single family home actually rose by 7%.
A little history puts things in perspective.
Who can remember back to 1988? It was a good year. October 16th saw the highest weekly gain in the Dow Jones Industrial Average of 517 points and a year end close of 8416. The Federal Reserve Interest Rate was 8.25% and peace finally came to Northern Ireland. The US announced its first budget surplus in 30 years and Bill Clinton survived Impeachment.
In 1998 a gallon of gas averaged $1.03 a gallon, and the Median Single Family Home Price in the Greater Bangor Area was $69,450.00!
A lot has happen in ten years! During that time local realtors have sold 9,514 Single Family homes in the Greater Bangor Area and the CPI (Consumer Price Index) has grown about 50%.
Today, adjusted for inflation, gasoline is about the same price it was in 1998, the Dow Jones Industrial Average is off compared to its 1998 level – a lot, and the Median Single Family Home Price has RISEN by over 62% to $149,650!
Year end 2008 home price numbers for the Area that are even more compelling show that over the past 12 months, in what has been, nationally, a very serious housing slump, the Median Price for a Bangor Area home has RISEN BY 7%! Local home ownership has been a great investment over the decade showing a COMPOUND ANNUAL RATE OF RETURN OF over 6.2%!
We think that as the economy turns local real estate prices will continue to rise and urge those thinking about home ownership to get sound financial advice, meet with their lender to find out how much house they can afford, and find a REALTOR to represent them as a Buyer Agent.
Most first time home buyers in 2008 purchased homes in the $100,000 to$150,000 price range.
In Bangor and Brewer and surrounding towns (Glenburn, Hampden, Hermon, Holden, Old Town, Orono, Orrington and Veazie) 251 homes sold in this affordable price range.
In 2007 the average sale price of these homes was $126,500 and over the past year rose to $127,350.
This is a clear indication that, in the affordable price range, home values remain very stable, in spite of declines of home prices elsewhere. It is also an indication of the strength of the Bangor area market economy and should give home buyers confidence in real estate as a solid investment.
If you are considering buying real estate, take advantage of low interest rates and reasonable prices early in the year while demand is relatively low and position yourselves, with financing in place, to find the home of your dreams! Contact an agent today.