Boston Financial times article regarding Munjoy Hill

ARTS & WEEKEND
House & Home

By Rebecca Knight

Portland, Maine, is one of those idyllic American cities. With a population of nearly 65,000, it’s not too big and not too small. It’s clean and safe and has plenty of culture: a symphony orchestra, an acclaimed art museum and more restaurants per capita than most cities in the US. And that’s not to mention the fact that it’s within 30 miles of some of the most beautiful beaches and forests on the east coast.
There’s no question that Portland has been “discovered”; it is often written up in glossy magazines as one of the best small cities in the US in which to live. But there is one pocket that homebuyers are only just starting to notice. Munjoy Hill, situated at the north-eastern end of Portland’s peninsula, is without a doubt, its most up-and-coming area.
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Almost exclusively residential, the neighbourhood overlooks the downtown and harbour to the south and the city’s Back Cove to the west, encircled by the Eastern Promenade, a series of grassy fields and public gardens that slopes down to picturesque Casco Bay.
Gordon Smith, a native San Franciscan, moved to Portland last year from Washington, DC. He chose to live in Munjoy Hill because he wanted to be in a place where “you had a sense of being close to the water”. “From my house, I hear the seagulls, I hear the foghorns and I have views of Back Cove and the city,” he says. “Being close to the water was really important to me.”
“Portland is getting a good deal of attention as a city that’s got a high quality of life,” says Kathryn Townsend of Townsend Real Estate. “And the Munjoy Hill neighbourhood, with its many parks and tennis courts, is good example of why that’s so. It’s for people who want a healthy lifestyle, like the outdoors, like to walk a lot and want to live in a place with a real sense of community.”
The area also offers easy access to The Old Port Exchange, a district known for its cobblestone streets, 19th-century brick buildings and fishing piers. Today, it is filled with trendy shops, vintage boutiques, restaurants and bars.
John Hatcher, an estate agent with Keller Williams Realty, says that Munjoy Hill is a “city neighbourhood with a distinctly small- town feel. It’s for those who want a less hectic urban lifestyle and that don’t want cookie-cutter suburbia. They want to be near the restaurants and shops in the Old Port but not at the expense of privacy and space.”
Munjoy Hill itself has also become decidedly hip. Funky, new restaurants such as The Front Room and The Blue Spoon have opened up, as well as new pubs such as Snug and gourmet coffee bars like North Star Café. “It’s got a good vibe, a cool culture,” says John Herrigel, an agent with Green Tree Realty. “It’s a neighbourhood for the younger crowd. It’s a great place to live in your late 20s and early 30s.”
This is a recent development. Even just a decade ago, Munjoy Hill was shabby and rough around the edges, according to Herrigel. “It used to be an area you wouldn’t want to walk around in at night,” he says.
But over the past few years local developers and savvy property buyers have snapped up the Victorian and Greek-revival-style properties and completed massive renovations inside and out. They’ve gutted the interiors, refinished wooden floors, added luxury finishes and installed new granite counters and stainless steel appliances. On the exterior, they’ve removed the scruffy aluminum and vinyl siding, and restored them to their original clapboard.
Smith, a lawyer, bought a three-storey, classic New England house earlier this year. A former carpenter, he is now in the process of renovating it. “I wanted a ‘project house’ in a sought-after neighbourhood where I could put in a lot of quality work and that that would be reflected in the resale price,” he explains.
If current trends continue, Smith will not be disappointed. While real-estate listing services do not break out data for particular neighbourhoods within Portland, the price trend for the city is moving upward. (And Munjoy Hill tends to be more expensive than Portland as a whole, according to local estate agents.)
For instance, a restored three-bedroom condominium on Morning Street, one block from the Eastern Promenade with water views from the back deck, was sold in September of 2001 for $168,000. It was sold again in August 2005 for $369,000, a 120 per cent increase, according to Hatcher, who worked on both sales.
Another modest, single-family home on Munjoy Hill sold in 2002 for $110,000 and was sold again in 2006 for $180,000, a 64 per cent increase, says Herrigal.
According to data from Multiple Listing Service and the Maine Real Estate Information System, for the month of July, the average price of a single-family home in the city of Portland was $255,588, while in 2005 single-family homes in the city went for $243,438. In 2004 that number was $229,900 and in 2003 it was $205,000.
Townsend says that the market has “stabilised” in recent months and that “things have calmed down since the buying frenzy” of 2005. “Two years ago buyers felt a lot of pressure to get in quick with offers otherwise they’d be left out in the cold,” she says. “But nowadays people don’t feel that pressure.”
It’s still possible to get a deal on Munjoy Hill but, according to Herrigal, “you’re paying a premium even if it’s a fixer-upper because that’s where the best resale value is”.
He says that the bargain properties are located on streets further away from the Eastern Promenade. “The houses right off the Prom are very nice and very expensive, and most of them have water views. The further away you get from the Prom the less nice the streets. Congress Street, Cumberland Street and Washington Street are probably the roughest areas and also where you’re likely to find a better price.”
“Bayside is another rough area on the fringe. But a new Whole Foods [upscale supermarket] just opened there so I think that within three to five years that area will be transformed. There’s good potential to add some sweat equity.”
Of course Munjoy Hill is not utopia. The long, dark, snowy New England weather is perhaps the biggest drawback for potential buyers. And property taxes are high. “The state of Maine has some of the highest real estate and income taxes in the country. And Portland – because it’s the biggest city – has the highest in the state,” says Hatcher.
Parking is another issue. “Most houses do not have off-street parking, which is a negative to the area,” says Townsend. “Also most houses are built on small city lots and have either tiny backyards or non-existent ones. But for those who want to live on the Eastern Prom, they just accept it.”
At this point, buyers in Munjoy Hill are mostly professional developers or locals seeking a primary residence but that is also starting to change. “We’re starting to see a trend of summer people from out of state coming in and buying here,” says Herrigel. Typically they already own a home in a warmer climate like California or Florida but they want to have a little place in Portland that they can spend May through to October in.”
The neighbourhood is particularly attractive to such home buyers because of its proximity to both the Old Portland beaches and the city’s cultural amenities, Hatcher adds. “They can fly into Portland Jetport, take a 10- or 15-minute cab ride to their place on Munjoy Hill and can enjoy all that Portland has to offer: arts, food, culture. But they are also close to the beaches and walking trails and parks if that’s what they have in mind.”
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Local agentsTownsend Real Estate, tel: +1 2078429200; http://www.townsendre.com/
Copyright The Financial Times Limited 2007

UPDATE: Portland Maines current market conditions

For those of you that continue to wonder and ask about our local real estate market we have provided some surprising answers and conflicting information in terms of what the national newspapers and press are reporting.

There is good historical data that the bottom line in the housing market is only about a year away. Recovering from the real estate recession is less predictive.
The percentage of foreclosures is sure to rise given the current mortgage crisis.
However, data proves that even if the annual range of foreclosures is 4% of households the local economy will not be significantly damaged.

Even though the purchasing power of borrowers has become more conservative it is the borrowers from prior years (2001-2006) who got caught in the mortgage industries over extensive credit lending and lenient terms, that will suffer the most.

According to the Maine Real Estate Information System, Inc. Realtor's in Maine sold 1,425 homes across the state during August 2007 - a 6.74% jump from last Augusts total of 1,335. The medium sales price for homes remained unchanged at $195,000.

On a national level home sales dropped 13% since last August.

Fortunately, Maine has been the exception to the rule in terms of the disturbance in the mortgage industry. We have many local lenders offering a variety of different terms to buyers. Our niche is our location and all that we have to offer that most of the county can't compete with. So if you ever heard of location, location, location... in the simplest terms we should consider ourselves extremely lucky to be positioned so well.

Please see MREIS'S report for August below.

Posted by Kathryn Townsend, owner/broker Townsend Real Estate

AUGUST STATISTICAL REPORT

AUGUST ONLY CHART

From August 1-31, 2006 and August 1-31, 2007



County # Units Sold # Units Sold % MSP MSP % Change

2006 2007 Change 2006 2007

STATEWIDE 1335 1425 6.74% $195,000 $195,000 0.00%

ROLLING QUARTER CHART

From June 1, 2006 - August 31, 2006 -and- From June 1, 2007 - August 31, 2007



County # Units Sold # Units Sold % MSP MSP % Change

2006 2007 Change 2006 2007

STATEWIDE 4112 3988 -3.02% $195,000 $197,714 1.39%

Androscoggin 317 276 -12.93% $165,000 $163,000 -1.21%

Aroostook 114 113 -0.88% $83,450 $86,000 3.06%

Cumberland 947 991 4.65% $250,000 $259,000 3.60%

Franklin 106 94 -11.32% $135,000 $141,000 4.44%

Hancock 184 156 -15.22% $195,000 $193,750 -0.64%

Kennebec 429 362 -15.62% $155,000 $152,000 -1.94%

Knox 139 178 28.06% $199,000 $208,500 4.77%

Lincoln 139 142 2.16% $243,500 $217,500 -10.68%

Oxford 196 169 -13.78% $150,000 $156,000 4.00%

Penobscot 460 478 3.91% $149,900 $146,600 -2.20%

Piscataquis 64 72 12.50% $97,000 $122,500 26.29%

Sagadahoc 146 120 -17.81% $207,090 $212,250 2.49%

Somerset 128 95 -25.78% $110,800 $123,000 11.01%

Waldo 118 105 -11.02% $162,000 $163,000 0.62%

Washington 13 12 -7.69% $110,000 $120,000 9.09%

York 612 625 2.12% $240,000 $240,000 0.00%

Source: Maine Real Estate Information System, Inc. Note: MREIS, a subsidiary of the Maine Association of REALTORS®, is a statewide Multiple Listing Service with over 5,800 licensees inputting active and sold property listing data. Statistics reflect properties reported as sold in the System within time periods indicated.

Change in October Show

During the month of October, we will be showing the photographic work of Sophie Sunrise Doughter. Sophie's show... Roadside Attractions is a journey through what many of us do not see... her work for this show is printed directly on stretched canvas which yields a beautiful and original piece of artwork. Please visit her website www.risephotography.com for more information...

"Sophie is a woman of few words. An observer. Her stories are best told through what her camera lens captures- moments you may have never known that happened, a glance you were too busy to catch, details you overlooked, an instant that may have passed you by otherwise. Not only does she depict the people, surroundings and emotions accurately, it's done in a style all her own. She considers each framed composition as a single work of art. No matter where she finds herself she is instinctually seeing the picture within her surroundings. Unobtrusive, she is aware of boundaries and naturally keeps herself hidden and you can trust she can do so without missing a thing. You almost forget she's there as she is a master at getting the unforced, candid shot.

As previously mentioned we will be featuring the works of Spindleworks at a later date.

Gallery 1 3 2

Townsend Real Estate spent over nine thousand hours restoring our two hundred year old building with the end result as our office space & an active art gallery with the capabilities of showing over twenty five pieces...

Gallery 1 3 2 has focused on local artists for the last two years & opens a new show on the first Friday of every month, in conjunction with Portland's First Friday Art Walk. We also feature members of the 'Jerks of Grass', Maine's best Bluegrass band. Gallery 1 3 2 is central to the Arts district, downtown and the Old Port... Join us for a fantastic evening of art, wine & cheese and the only live music at the First Friday Art Walk. We are also open to the public Monday-Friday 9-5 and on Saturdays until noon. We are continually looking for artists, so please contact us if you would like to discuss showing @ Gallery 132.

DIGG Business and Finance news

Spectacular turnout!

For those of you who don't know, Portland galleries and art museums sponser an art walk on the first Friday of each month. Townsend Real Estate's own Gallery 132 had a spectacular turnout this past Friday due to the winning combination of local artist Tita Townsend's abstact work, bluegrass music from members of the renowned band The Jerks of Grass, great food, company and of course the absolute perfect weather. Over 150 people visited our gallery to view the new collection. We hope you will come and visit us next month when we will be collaberating with the artists from Spindleworks Artist Studio's http://www.spindleworks.org/. Spindleworks is a nonprofit art center for adults with disabilities. Their mission is to, "Help children and adults with disabilities achieve full and inclusive lives in their chosen community." We will be featuring more information about Spindleworks in future blogs and at http://www.townsendre.com/ click Gallery 132 to view some examples of their work.

First Friday Art opening at Gallery 132

TEN WAYS TO HELP YOUR PARENTS DOWNSIZE THEIR LIVING ARRANGEMENTS

The Task of downsizing can be daunting. It most often can be an adult child’s largest challenge. Frequently, downsizing occurs as a result of a crisis in the life of your loved one. This leaves them feeling out of control and important decisions are often made too quickly by their family.

A home is often the most valuable asset a person has. Assessing the overall situation prior to a crisis can significantly reduce the stress of an impending move.

1. Identify appropriate housing and realize that there may be a long waiting list at many facilities. It is generally best if you can plan to market the home after your parent has relocated and the house is vacant.
Talk about showings and what happens when a house is shown.
Easier to show when vacant less clutter.
2. Arrange for professional services. A real estate agent can assist you in identifying a market value for the home and can give you advice on how to prepare the home for sale, even if it’s month’s prior to placing it on the market. He or she should also be able to give you local references for trash removal, estate specialists, cleaners, movers, lawn maintenance, etc.
Talk about how it is important to interview 3 agents. May be difficult to find someone who specializes but ask what kind of experience they have with elderly people. These sales tend to be more work because of the number of different people involved.
3. Help sort. Be sensitive to the fact that seniors tend to keep things they don’t need. Ask them if they don’t use an item if they would mind if you donated it or gave it to a grand child or sibling as a keepsake.
Don’t treat them like children!
4. Take pictures of the inside of their home. Keep in mind that the place they are moving will be much smaller and sometimes very few personal items can be taken. Try to photograph how the significant items in their home are situated so that you can place them in a similar way in their new residence.
Create a photo album for them to take with them full of family memories.
5. Start small. Take a day to talk with your parents about the move and what to expect. Give them small tasks to do and keep them involved.
15 minutes at a time. Be patient.
6. Pick a room to start that has less sentimental value such as a bathroom or a kitchen. This will set the tone for the rest of the moving experience.
7. Plan the move - When possible allow enough time so that your parents don’t feel rushed. Give them time to absorb the change. Visit the new facility a few times so that they become familiar with their new surroundings.
If a Realtor is involved at this point it may be stressful for a parent to hear a stranger talking about their home. Keep visits minimal talk to the agent about the situation.
8. Hire help - There are senior moving specialists who will assist in the entire moving process, including helping to organize, clean, coordinate the move and prepare the home for sale. Many times it is easier for parents to work with an outside party as they may feel conflicted or burdensome on their adult children who need to take time off from work or their family. Often family members are scattered throughout the country and the burden is placed on a single family member. This can cause dissension within the entire family, making the task of downsizing even more stressful.
Talk about staging vacant properties.
9. Speak with an attorney to get advice regarding placing the home in a trust, getting a power of attorney and other essential issues regarding the legalities of your parents estate and transfer of title.
Get a recommendation for Real Estate agent not advice!
10. Start early, take this advice and downsize when you no longer need the space anymore. Avoid future conflict and plan ahead in your 50’s and 60’s. Don’t hold onto your childrens items if possible.

author:Kathryn Townsend