PORTLAND (NEWS CENTER Maine) -- Portland's real estate market is red hot and has been for some time. On the peninsula especially, demand is driving prices up. There are a few one bedroom condos for sale in the $300,000 range. People are willing to pay that for the walkability of the city, and it's amenities. Investors are also snatching up properties to take advantage of Portland's high rental prices, further lowering the supply. But we wondered, what you could get for that same amount of money if you are willing to commute. As you'd imagine, the farther out you go, often the more you get. But real estate is very local. As people are priced out of the city, certain suburbs have become hot markets themselves, while others offer more options and better prices.
NEWS CENTER Maine's Cindy Williams spent some time with Lucy Tucker of Keller Williams Realty Abode Group in Portland to get a sense of the current market, and where it may be headed.
In the video, Lucy shows us some examples of what's for sale in that price range on the Portland peninsula, off the peninsula, in Westbrook, and in Windham. We've also compiled a look at some the houses in other areas of the state in that same price range. Click here for that sampling.
We have heard for some time that it is a seller's market. That means there are a lot of buyers, but fewer sellers. That drives prices up. Properties that go up for sale often see multiple offers, are sold very quickly, and sometimes sell for more than the owner was asking. That has regularly been happening in Portland for some time. Other suburbs that have been seeing that same frenzy are South Portland, Westbrook, and Saco. But Tucker says they are now seeing signs that the market is becoming more balanced. Supply is beginning to increase. And buyers, spooked by rising interest rates, are ready to pounce. Tucker says for every 1% increase in the interest rates; buyers will be able to spend about $10,000 less on the house. Bottom line, Tucker says, it's a good time to buy and sell.
If you are buying, where might you get more bang for your buck and still commute to Portland? Some of the cities that have more properties on the market right now, and therefore offer more opportunity for buyers, are Windham, Standish, Scarborough, Gorham, Brunswick, and Falmouth.