2023
ANNUAL REPORT Portside Real Estate Group + Portside Foundation
THE MAINE HOUSING MARKET REMAINS COMPETITIVE Residential real estate was a hot topic in 2023! Despite the surge in mortgage rates, home prices continued to rise across Maine. This caused many potential home buyers to slow their searches compared to previous years as their budgets had to be adjusted due to increased interest rates aimed at curbing inflation. At the peak, the national average 30-year mortgage rate hit a 23-year high with rates nearing 8%, and the median home price in Maine peaked in June at $385,000. Fortunately, interest rates moderated in the fourth quarter. Amidst intense competition in the housing market, persistent demand outpaced limited supply. Would-be buyers with the stomach to stay in the market gobbled up the limited inventory in the hottest markets. Some potential buyers paused their home searches, grappling with affordability challenges posed by elevated home prices and high interest rates. Homes priced at market value attracted swift sales, some with multiple offers, whereas those homes initially overpriced lingered on the market, often requiring price reductions to secure offers. Ultimately, a single-family home in Maine sold at a hair over 100% of the final list price. At Portside, we are pleased and grateful that despite a declining year in real estate with the Maine market down 11% in volume, Portside’s volume actually increased over 2022. Our dedicated team of full-time, best-in-class agents not only surpassed the market but also marked our 11th year in business with our highest-ever sales volume! As Portside agents, we are proud to have made a positive impact on our community through our 1% Back to Maine initiative. We were able to give back over $220,000 to Mainers in need through our 1% grants, our event series, pop-by gifts, and other sponsorships to support local nonprofits. Notably, we allocated $62,000 to the Lewiston Auburn Recovery Fund and NAMI in the aftermath of the tragic mass shooting. 2024 will be another strong year for real estate prices as supply will struggle to keep up with the demand of locals and out-of-state buyers. We are anticipating a slight uptick in transactions as buyers adjust their lifestyles to the current mortgage rates, and life changes cause homeowners to list their homes. At Portside, our gratitude extends to the numerous opportunities that unfolded in the past year. With anticipation and enthusiasm, we eagerly embrace the future, ready to continue making a positive impact on our community and navigate the evolving real estate landscape in 2024.
Dava Davin Founder of Portside Real Estate Group dava@portsidereg.com
2 | INTRODUCTION
TABLE OF CONTENTS
MAINE MARKET UPDATE
4
STATE OF THE HOUSING LANDSCAPE
8
RELOCATION TRENDS
9
ECONOMIC OUTLOOK
10
2024 FORECAST
11
YEAR IN REVIEW
12
PORTSIDE FOUNDATION
14
1% BACK TO MAINE®
15
OUR BENEFICIARIES
16
OUR YEAR
18
OUR REACH
19
INTRODUCTION |
3
MAINE MARKET UPDATE 2023 SINGLE FAMILY HOMES
$360,000
Median Prices 7.3% INCREASE
$335,000
The median home price in Maine reached a record-breaking high! Still rising but not at the double digit rate of the last 3 years. 2022
2023
14,000
21% SLOWDOWN The number of single family homes sold in 2023 was 21% less than 2022.
9 DAY S
2022
4 | INTRODUCTION
INCREASE
Units Sold
16,960
2022
7.3%
DECREASE
2023
1 0 DAY S
21%
Days On Market 1 DAY INCREASE
2023
The market still moved swiftly, taking just 10 days to sell a home with a list to sale price ratio of 100.4—most sellers getting full asking price or more!
1 DAY
INCREASE
MEDIAN HOME PRICES OVER THE LAST FIVE YEARS $360,000 $350,000
$335,000 $299,000
$300,000 $255,025 $250,000 $225,000 $200,000 2019
2020
2021
2022
2023
The median price of a home skyrocketed by 60% in the last 5 years. That is a lot of equity for Mainers! With a substantial portion of homeowners benefiting from interest rates below 4%, there is a prevailing trend of homeowners opting to stay put, thus contributing to the retention of tight inventory levels and sustaining elevated home prices.
100.4%
$360k
List to sale price ratio statewide in 2023, down from 100% in 2022
Median single family home statewide in 2023, up 7.3% over 2022
10
^60%
Median days on market to sell a home statewide in 2023
Increase in the median home price since 2019
MAINe MARkeT UpDATe |
5
MEDIAN HOME PRICES IN MAINE
HOTTEST AREA Price were on the rise in all regions with Androscoggin and Oxford leading the pack at 14.7%.
$319,000
14.7%
Androscoggin, Oxford
$196,800
7.8%
Franklin, Piscataquis, Somerset, Aroostook
$275,000
10%
Hancock, Penobscot, Washington
$343,000 10.6% Kennebec, Knox, Lincoln, Waldo
$500,000
5.9%
Cumberland, York, Sagadahoc
SLOWEST PRICE GROWTH The most expensive areas Cumberland, York and Sagadahoc had the slowest overall growth. We are seeing a trend of first-time home buyers moving from this area to find more affordable homes north and west. 6 | MAINe MARkeT UpDATe
7.2 BILLION
MARKET UPDATE
Total volume of condo and single-family homes sold. T H E M A R KE T S H R A N K B Y 1 0 %
16 THOUSAND
Units of single-family homes and condo sales. D OW N 3 , 0 0 0 U N I T S D E S P I T E AN UPTICK IN CONDO SALES C O M PA R E D T O 2 0 2 2
7.3 PERCENT
Change increase in median price. CONDO PRICES WERE UP 12%
In 2023, home prices demonstrated sustained growth, albeit at a slower pace compared to the preceding years. The number of units sold declined from the previous year, marking the lowest annual units sold in a decade; the last time sales were at this level was in 2014. Despite the decrease in the number of transactions, the record-high home prices contributed to a robust residential market, generating a total sold volume of $7.2 billion for the year.
THE MEDIAN HOME PRICE IN SOUTHERN MAINE IS
$500,000
WHAT DID THAT GET YOU IN 2023?
PORTLAND
SOUTH BERWICK
BRUNSWICK
151 Colonial Road
15 Park Street
17 Middle Bay Road
Lot size: 0.16 Acres Home Size: 928 sqft Beds: 2 Baths: 1
Lot size: 0.31 Acres Home Size: 1,437 sqft Beds: 3 Baths: 1
Lot size: 1.2 Acres Home Size: 2,232 sqft Beds: 2 Baths: 3
List Price: $395,000 Sold Price: $500,000
List Price: $439,000 Sold Price: $505,000
List Price: $399,000 Sold Price: $502,000
SOLD FOR 27% OVER ASKING
SOLD FOR 15% OVER ASKING
SOLD FOR 26% OVER ASKING Maine Market Update |
7
STATE 2024 ECONOMIC OF THE OUTLOOK HOUSING LANDSCAPE
RYAN FECTEAU Senior Officer of Policy & Planning Avesta Housing
2024 is going to be a landmark year for housing in Maine. I have no way of knowing how many housing units will be permitted for construction or certified for occupancy. But I know 2024 is going to be a landmark year, because of L.D. 2003, a new law that changes the housing landscape. I championed L.D. 2003 in 2022 as Speaker of the Maine House of Representatives. The law has five primary effects. First, it prohibits exclusive single-family zoning by allowing up to two-units on any vacant residential lot and up to four-units on any vacant residential lot in so-called growth areas. Secondly, it allows for up to two additional units on any residential lot with existing single-family home. Thirdly, it requires minimum lot sizes for units between two and four not incrementally exceed what applies to the first unit. In other words, if a town requires one acre for the first unit, they must require no more than two acres for the second. Fourthly, the law allows accessory dwelling units (ADUs) by right on any lot with an existing single-family home. Finally, it creates a density bonus for any development designating at least 50 percent of the units as affordable. Most larger communities were required to comply with the new law by January 01, 2024 and other towns will need to comply by July 01, 2024. As towns work towards compliance, I have observed robust and unprecedented community dialogue about housing and how to positively impact its production. In fact, some communities are going beyond the law’s basic requirements, such as Portland which now allows up to four units and up to two ADUs on any mainland residential lot. Housing is one of the most pressing issues facing Maine. We need bold change to create more housing opportunities for Maine families. L.D. 2003 is bold. And the work undertaken by Maine’s cities and towns is the landmark change we need at this pivotal moment.
8 | State of the Housing Landscape
KATIE SHOREY Director of Engagement Live and Work In Maine
2023 RELOCATION TRENDS
The Live and Work in Maine (LWM) website saw an increase in visitors this year (22%)—with 56% of users being from out-of-state and 44% of users located in Maine. The majority of the website users, as well as the job board users, are ages 25-44. The top two topics of interest by website users are employment and real estate. Anecdotally, we have seen a younger wave of people move to Maine (which is in line with the Maine State Economist's findings) and the majority of attendees at our Welcome Home community events are new-toMaine residents (within the last 2-3 years). LWM's marketing campaigns, out of home advertising, opt-in newsletters, and social media outreach are driving individuals to the website and job board, which continues to be the best way to recruit talent and share resources with Mainers and future Mainers.
MAINE POPULATION CHANGE LIVE AND WORK IN MAINE: BY THE NUMBERS
7.3K
1.6M
job applications submitted
overall jobs views
4.1K
job seekers added
WEBSITE VISITOR DEMOGRAPHICS
IN-STATE USERS
44%
56%
OUT-OF-STATE USERS
Relocation Trends |
9
2024 MAINE ECONOMIC OUTLOOK
AMANDA RECTOR Maine State Economist Department Of Administrative + Financial Services
The U.S. and Maine economies ended 2023 on a solid footing and are starting 2024 with an expectation of declining inflation and interest rates paired with a slower pace of employment growth that avoids recession. However, global geopolitical upheaval remains a risk to the forecast. For Maine, one of the big questions is whether migration into the state will continue. The pandemic created conditions that resulted in a large influx of people moving to Maine. In 2021, Maine had the fifth highest net migration rate in the country and netted nearly 19,000 new residents through migration. In 2023, migration patterns around the U.S. returned to more normal prepandemic patterns, but Maine still had the ninth highest net migration rate and was 21st for population growth rate in 2023 (0.5%) and 14th cumulatively since 2020 (2.4%). Maine set a record high for total nonfarm employment in October 2023, reaching just over 650,000, but growth is expected to slow with the tight labor market as a limiting factor. Maine’s labor force has declined in recent years due in large part to retirements among people age 55 and older. Maine has a large share of Baby Boomers (born 1946-1964) in its population and as this generation ages and retires from the labor force, more and more new workers are needed to maintain the labor force. Migration into the state is a key factor in labor force growth, but housing availability and affordability is a constraint on migration. Affordability may be helped by declining inflation and interest rates. Inflation peaked in the summer of 2022, coinciding with a peak in crude oil prices, and has eased since then. Inflation is expected to continue slowing through 2024; the Federal Open Market Committee projected Personal Consumption Expenditure (PCE) inflation to fall from 2.8% in 2023 to 2.4% in 2024 at their December 2023 meeting. At that same meeting, interest rates were held steady at 5.25-5.5%, with projections showing two to three 25 basis point cuts in 2024. This will help ease debt service burdens on consumers and continue steering the economy towards the elusive “soft landing.”
MAINE POPULATION CHANGE
30,000
Net Pop. Change
Net Pop. Change
Net Pop. Change
+14,270
+10,551
+6,384
2021
2022
2023
15,000 0 -15,000
Domestic Migration
International Migration
Births
Deaths
TOTAL NONFARM EMPLOYMENT 656.1K 637.1K
638.7K
617.9K
598.9K 2007
10 | Maine Economic Outlook
2012
2019 2023
2027
PORTSIDE'S 2024 FORECAST INTEREST RATES
AFFORDABLE HOUSING
Expect continued moderation, facilitating more transactions compared to 2023.
Recognizing the national issue, new zoning laws in Maine aim to address this concern, but the tangible benefits may not be fully realized until beyond 2024.
HOME PRICES
INVENTORY
Anticipate a 3-5% increase in home prices.
Expect the continued low inventory to maintain high prices, but a more balanced market is on the horizon.
OUT-OF-STATE AND SECOND HOME DEMAND
SEASONALITY
Foresee this segment contributing to 30% of the market.
GROWTH AREAS The northern and western regions of southern coastal Maine will continue to grow, potentially leading to affordability challenges for buyers.
The real estate market is predicted to experience a robust spring, gaining momentum after a potentially slower first quarter.
OVERALL TRANSACTION INCREASE Foresee more transactions as interest rates settle in, and life changes prompt people to move. The anticipation is not for a dramatic shift but rather a better year in 2024 compared to 2023.
2024 FOReCAST |
11
YEAR IN REVIEW 12 | 2024 Forecast
Year In Review |
13
THE PORTSIDE FOUNDATION We believe that if we care about our neighbors, the difference we make collectively will be sustainable and life changing for our fellow Mainers. The portside Foundation 501(c)(3) is dedicated to improving the health and well-being of Maine’s communities by supporting humanitarian, environmental and health-andyouth assistance programs. The Foundation organizes and hosts multiple fundraising events and awareness campaigns on behalf of local nonprofits throughout the year. These thoughtful events generate income through corporate sponsorships, ticket sales, auctions and direct donations. The proceeds from these events are used to support local nonprofits working to improve the lives of those in our communities. Since the Foundation’s inception, we have raised enough capital to donate over $820,000 through our Portside Gives Back events, 1% Back to Maine and donation drives for cancer causes, affordable housing, youth wellness and wildlife conservation programs in Maine.
PORTSIDE FOUNDATION IN 2023 Autumn Equinox at Maine Audubon
»
»
Raising over $22,000 for Maine Audubon + their DEI initiatives
»
»
Hops for Habitat at Home PopBy gifts benefiting Habitat for Humanity of Greater Portland, York County and Seven Rivers
»
Spring for a Cure PopBy gifts benefiting Maine Cancer Foundation
»
Blood Drive Yarmouth Clam Festival Maine Marathon
» »
» 14 | pORTSIDe FOUNDATION
»
1% Back to Maine Panel
»
Pride Parade
» »
Portsiders paying it forward in Maine + New Hampshire
»
» »
»
Coffee’s On Us
»
» »
»
»
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Pop-Up Holiday Drive Benefitting Maine Children’s Home Volunteer Day at White Pine
1% Back to Maine focuses on supporting the next generation of Mainers, Maine’s youth, by helping to give them the greatest chance at creating a more wonderful world. Selling homes in the community affords us the privilege of giving back to the communities that we live and work in. On a quarterly basis the Portside Foundation and participating Portside agents give 1% of top line revenue to local nonprofits supporting systemic Maine problems.
SYSTEMIC ISSUES IN MAINE
$220,000 RAISED 15 GRANTS FUNDED
$545,000 raised since 2021 57 grants funded since 2021
2023
MEDICAL + MENTAL HEALTHCARE EDUCATION FOOD INSECURITY GENERATIONAL POVERTY + AFFORDABLE HOUSING
OUR CONTRIBUTIONS AT WORK Lewiston-Auburn Area Response Fund Taking swift action, our 1% Back to Maine Committee held an emergency meeting to address how we can assist. Partnering with the Maine Community Foundation, we allocated off-cycle grants ($62,000) to provide immediate resources to aid in the rebuilding and healing process for those affected by this tragedy:
$50,000
$12,000
Lewiston-Auburn Area Response Fund Broader Recovery Effort
National Association of Mental Health—Maine (NAMI - Maine)
Through every sale, the hard work and generosity of our portside agents has enabled these emergency funds to provide relief to those in distress.
1% BACk TO MAINe |
15
2023 GRANT BENEFICIARIES
CUMBERLAND COUNTY greater portland Family promise I $10,000
Lewiston Auburn Area Response Fund I $ 50,000
This grant will be used to help prevent family homelessness through GPFP’s financial assistance programs and housing stabilization programs that work with local landlords.
This grant was created by MCF to address current emerging needs associated with this tragedy on 10/25/23. With MCF as the conduit, 100% or the funds will be allocated to the people impacted and the organizations that will help guide L/A through the process of healing.
Rippleeffect | $10,000 This grant will help fund the Rippleffect Outdoor Community Center, a Portlandbased site for youth development experiential and wilderness education.
Our place I $10,000 This grant will provide consistent mentorship, food and resources, advocacy services, and novel experiences for middle school youth and families in East Bayside, Portland.
Tedford Housing I $7,500 This grant will help Tedford Housing’s case management services offered to all emergency housing, supportive housing and homeless prevention/outreach clients. Primary service areas are Cumberland, Sagadahoc, and Lincoln counties.
Yellow Tulip project I $10,000 Funding of this project will help extend an innovative black and white photo exhibit and art-based programming to Portland schools and other community spaces. This initiative is aimed to showcase the stories of young men and non-binary folks who are impacted by mental health struggles.
kennedy park Football Club I $10,000 To engage new and returning players in skill development sessions, community building opportunities, help them plan for their future, and navigate education and financial aid.
Big Brothers/Big Sisters of Southern Maine I $7,000 This grant will continue to create one to one mentor relationships between students/youth and student/adults.
YORK COUNTY ecology School I $10,000 This grant will work to build a resilient local community in York County through sustainable food production and consumption, experiential education, workforce development opportunities, and strategic partnership development.
Youth Full I $7,500 These funds will help YFM manages school food pantries currently in three school districts and two pre-schools, for a total of 20 schools in 10 different towns and soon to add three HeadStart preschools. to address food insecurity in York County for students, children, and their families through food distributions, pantries, and community distributions in York County.
White pine programs I $11,000 This grant will help with programming to inspire the next generation of environmentalists through experiential, accessible, nature-bound programs that help build personal growth, empathy and community.
LINCOLN COUNTY Midcoast Hunger prevention program | $10,000 This grant helps fund programs throughout mid coast Maine ensuring there’s an easy way for everyone in the community to access food close to home.
Hearty Roots | $4,500 The grant funding will help to improve mental wellness by shifting kids away from indoors, screen bound activities toward nimble sustainable outdoor programming on Maine’s Preserves and to hire an adventure therapist and purchase a program vehicle.
STATEWIDE NAMI Maine I $ 12,000 This grant will help develop a stronger mental health system that provides care, support and service that Mainers require.
Count Me In | $6,000 Funding for this grant helps to expand programming to provide direct support to students who are experiencing severe, chronic absenteeism.
16 | BeNeFICIARIeS
PAST BENEFICIARIES
TO LEARN MORE VISIT 1% BACK TO MAINE'S WEBSITE BeNeFICIARIeS |
17
PORTSIDE'S 2023 $220,000+ GIVEN BACK TO YEAR IN REVIEW OUR COMMUNITIES $870 MILLION
#1
1500+ UNITS
IN SALES
INDIE BROKERAGE
#1 IN UNITS SOLD
#2 OVERALL
PER AGENT
BROKERAGE
#1 LIST PRICE TO SOLD PRICE
of the top 10 Maine brokerages
for volume out of 570 brokerages
of the top 10 Maine brokerages
SOLD
INVeSTMeNT pROpeRTY LeADeRS
#2 IN MAINE for multi-family sales volume
MIDCOAST gROWTH
#1 IN
SAGADAHOC COUNTY CONDO eXpeRTS
#2 IN MAINE for condo sales volume
#1 in CUMBeRLAND COUNTY #1 in pORTLAND
18 | OUR YeAR
and fastest growing with 62% growth
#3 IN MAINE
for luxury sales of properties over $1M
#2 IN MAINE
for buyer represented sales
OUR REACH
PORTSIDE’S CORE MARKET COUNTIES SERVED IN 2023 PORTSIDE MOUNTAINSIDE
»1
59 Pleasant Street, Brunswick
»2
765 US Route One, Yarmouth
»3
417 US Route One, Falmouth
»4
59 Baxter Boulevard, Portland
»5
4 Scott Dyer Road, Cape Elizabeth
»6
149 Port Road, Kennebunk
»7
155 Fleet Street, Portsmouth
SeRVINg CASCO BAY ISLANDS Including Peaks Island!
out-of-state buyers
MADE UP 30% OF TOTAL SALES OUT OF STATE BUYERS Portside Real Estate Group agents use their extensive area knowledge and market-specific experience, backed by global reach, through our connection with Leading Real estate Companies of the World. Our offices are strategically located along the Maine coast, providing convenience for our customers and critical exposure to buyers. If your search brings you outside of Maine, Portside’s affiliation with Luxury Portfolio International provides you with global access to properties near and far, whether you’re searching for your primary residence, second home or investment property.
OUR ReACH |
19
2023
www.portsidereg.com