Condo Media - May 2021 - 38

The Region

MAINE

Condominium
Real Estate News
Impact of COVID-19 on Lifestyle and Sales
[by Jack Carr, P.E., RS, LEED-AP]

National trends - from fashion to
condo housing - have historically
flowed from left to right. Trends
start on the West Coast and flow east
through the metropolitan areas of the
rest of the country before heading
north and ending in Maine. This year,
however, things are a little different in
the real estate market.
The hot real estate markets, in order
of degree of heat, are changing. Now, the
focus is on Austin, Phoenix, Nashville,
Tampa, and Denver. The force behind
this trend is the Millennials. Thirtyeight percent of new buyers right now
are Millennials buying their first home.
This year, Maine is creating its own

trend, resulting from COVID-19 and
quality of life issues, which see condos
being purchased for vacation homes, as
investments, and as part of a search for
a new lifestyle.
BOOMER AND MILLENNIAL SHIFT
Boomers have become empty nesters who do not want to deal with the
four-bedroom suburban house. They
are migrating to the new breed of
condominiums in urban areas such as
Portland. Maine has never been known
as a luxury condo market, but in 2020, a
high-rise unit on the Eastern Prom sold
for $4.9 million. As with any market, the
current condo market in Maine has its

Following nine straight years of positive growth
in both price and volume, 2020 was another
record-breaking Maine real estate year.
38

CONDOMEDIA May 2021

pluses and minuses. While the cost of
new condos is increasing, the amenities
and quality of the new condo developments are going upscale, proving the
adage, you get what you pay for.
Meanwhile, like ships passing in
the night, Millennials are heading in
an opposite market direction, moving
from the congested urban areas to
provide their growing families some
elbow room. The pandemic has taught
them the advantage of space and the
avoidance of daily job traveling with
employers becoming more comfortable
with telecommuting. These progressive
employers see business improvement
when the focus is on productivity and
not hours behind an office desk. Things
may never be the same.
RECORD-BREAKING YEAR
Following nine straight years of
positive growth in both price and volume, 2020 was another record-breaking
Maine real estate year. The year ended
on a high, with December unit sale
volume up 31.5 percent compared to
last December and the national average
volume increase of 22.8 percent for the
same month. Accompanying this volume growth, the median sales price also
increased by 15.4 percent, according to a
recent Portland Press article.
Real estate experts have noted
a strong trend of out-of-state buyers
driving the market. Over 35 percent
of Maine home buyers in 2020
were from other states, primarily
Massachusetts, New Hampshire,
and New York, as compared to past
year averages of 10 percent. Community living has increased and now
encompasses more than 35 percent
of the market. Another interesting
statistic for condo and HOA unit
owners is that while the 2020 average
sale price of a single-family home in
Maine rose 17.8 percent compared
to 2019, the average sale price for a
condo or HOA unit rose 22.9 percent.
Further, sales volume for condo
or HOA units was up 97.6 percent
compared to the single-family homes
increase of 35.1 percent.
Condo Media - May 2021

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