A Tale of Two Hamiltons

The velocity of sales in this market is often challenging to predict, in terms of both pace and price.  A perfect example of this can be seen in a set of nearly matching homes set less than 50 feet apart and sold within 5 months of each other.  The first Hamilton, 42 Hamilton in South Portland, came on the market in September of 2020 as a new construction home priced at $519,000, and went under contract immediately.  It likely then fell subject to the construction delays and supply shortages that plagued builders during the pandemic, as well as the challenges of a Maine winter.  Finally, 42 Hamilton was finished in the summer of 2021 and closed on August 31 for $526,500.

Its slightly smaller twin, 34 Hamilton, was being built next door at the same time.  It first came on the market in June of 2021 for $629,900, reflecting both the increase in sales prices and costs of building.  In July, the price was reduced to $599,900, but it failed to go under contract and was withdrawn in September, right after its twin was finished and sold.

In December, typically a slow month for real estate in Maine, 34 Hamilton, nearly finished and with some nice interior upgrades, came on the market at a further reduced price of $575,000.  However, this time the buyers lined up and there was a fierce multiple offer competition and it sold for $676,000 - yes, you read that right, $101,000 OVER its list price.

Before the pandemic, the past trendlines of prices and closed sales was a more reliable guide.  The past actually did inform the present and the future.   After all, appraisers use recent, similar, and closed sales to establish values for lenders.  However, buyers can operate on different terms.  Buyers moving here from some areas of the country, see homes in Maine as both bargains and upgrades.  Buyers from within the state, if they have recently sold homes, find themselves with amazing amounts of equity to apply to new purchases.  Add in low interest rates and an incredibly low inventory and you have a perfect storm favoring sellers and creating stress for buyers.

Whichever side of the transaction you find yourself on– having a professional on your side has never mattered more.