The American Folk Festival is a large-scale, three-day event. Held each year at the end of August in downtown Bangor, Maine, the Festival presents the music and dance from the many cultures that make up America today.  Here are few photos I took at this year's event. 

Penobscot County was up 33.51% in units sold and the median sold price was down 3.31% to an average of $119,000.  Waldo County was also up 48.84% in units sold with  a median sold price of $147,500.  For more information on other counties please visit the Maine Realtor's press release.

The National Association of Realtors today reports a nationwide home sales increase of 21.4 percent since October 2008. The national median existing sales price of $173,100 reflects a dip of 6.8 percent. In the regional Northeast, sales rose 27.7 percent. The regional median sales price declined 2.6 percent to $235,400.

This is encouraging news for the Real Estate Market in Maine.  Also, with the extended and enhanced Homebuyer tax credit we anticipate this trend to continue.  For more information regarding the October 2009 Housing report click here.

If you would like more information regarding the Homebuyer tax credit or if you are considering purchasing or selling a home, please send an email or call me @ 207-942-6310 x215.

Congress has passed new legislation that:

·     Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.

·     Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.

Here is more information about how the Extended Home Buyer Tax Credit can help prospective home buyers become part of the American dream. If you have specific questions or need additional information, please contact a tax professional or the Internal Revenue Service at 800-829-1040.

Who Qualifies for the Extended Credit?

·     First-time home buyers who purchase homes between November 7, 2009 and April 30, 2010.

·     Current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.

This tax credit is great news for First-time Home buyers as well current home owners that want to "trade-up" or "down-size".  For more information,please feel free to contact me as I would love to assist you with the purchase and/or sale.

The profile also noted that the region  “has four distinct seasons, and outdoor enthusiasts can enjoy snowmobiling and cross-country skiing in the winter and switch to golfing, fishing and hiking when the weather turns. Acadia National Park and Baxter State Park are about 90 minutes away, but there are 30 parks in Bangor. The City Forest comprises 650 acres with 5 miles of biking and cross-country trails."

The Greater Bangor also has many amenities that retirees are drawn to. These include two major hospitals, a public bus system, a number of assisted living and senior housing facilities and several Colleges & Universities.

The magazine looked at about 2,000 communities before coming up with its list of the top 25 places to retire. Selection factors included tax rates, recreational opportunities, medical care, arts and culture, housing costs, income and age ranges, job growth, fastest and slowest commutes, weather, air cleanliness and statistics regarding rich singles. The magazine’s listings for retirement living can be found on its Web site at http://money.cnn.com.

Contact me if you're considering retiring in the Greater Bangor area or if you would like more information about the region.

Recently  I completed an intensive three-day conference on personal marketing and the future of real estate. “Gateway,” presented by real estate marketing experts Hobbs/Herder Advertising, is a leading national training program offered to top real estate professionals nationwide.

About  500 of  the Northeast's real estate elite were in attendance at the seminar, held August 12-14  in Boston, MA  Leading the conference was Greg Herder, founders of Hobbs/Herder Advertising.  Since 1986, Hobbs/Herder has trained thousands of agents and brokers across North America on powerful lead-generating marketing and business systems. At this gathering of the brightest minds in real estate, three other colleagues from Realty of Maine and I learned groundbreaking marketing techniques and concepts that can be used to our advantage in today’s complex market.  The Hobbs/Herder philosophy is based on marketing the agent on a personal level through print and Internet media. 

I saw “Gateway” as the next step in gaining a foothold in the competitive local real estate market.  By marketing the person instead of the house, I gain an instant advantage in the mind of the consumer.  I aim to become a local resource, not just another sales person.

For more on “The Gateway” or Hobbs/Herder Advertising’s other programs, visit www.HobbsHerder.com.

Schoodic Point (Acadia National Park)

Schoodic Peninsula and Acadia National Park consists of the towns of Winter Harbor, Gouldsboro, Sullivan, Sorrrento and Franklin.  This area is beautiful with its crashing surf,   rocky coastline and panoramic views of the Atlantic ocean. Enjoy hiking the trails in Acadia, sea kayaking and sailing in Frenchman’s Bay, biking, bird watching, golf and cross country skiing.

Portland Head Light

Fort Williams is located in Cape Elizabeth and its home to the oldest lighthouse in Maine and the most photographed, Portland Head Light.  Enjoy the playing fields, tennis courts, beach, or simply walking around the park. Special events like the Family Fun Day, the Labor Day Art Show, the People's Beach to Beacon 10K Road Race and performances by the Portland Symphony Orchestra happen yearly.

Cadillac Mountain (Acadia National Park)

At 1530 ft, Cadillac Mountain rises above the town of Bar Harbor and it offers amazing views of the Porcupine Islands and Frenchman Bay. Explore the summit of this granite mountain along a .3-mile trail, which includes exhibits about natural and human history.  Some of the trail is accessible to wheelchair users.  To get to Cadillac Mountain you'll climb a winding, narrow, 3.5-mile road. The road is closed from December 1 through April 14 and whenever weather conditions require.  A great spot to watch the sun set!

Monhegan Island

Monhegan is a small, rocky Island ten miles from the nearest mainland and about a square mile in area. It is accessible only by boat and there are no cars or paved roads on the Island.   For more than 100 years, Monhegan has been a summer haven for artists and other visitors who appreciate its isolation, the beauty of its wilderness areas, its quiet relaxed atmosphere, and its unhurried pace.   We took the Monhegan Boat Line from Port Clyde and stayed at the Island Inn and The Mohegan House.  There are spectacular views from the walking trails and it is truly an amazing getaway!

This promotion  of up to $5,500 combined with the $8,000 First-time homebuyer tax credit and the home energy-efficiency improvements that may qualify for additional federal tax credits worth up to $1,500, add financial incentives of up to $15,000 and a once in a lifetime opportunity.

To get more information about the program click the "Gift of Green" logo below or contact me to see if you qualify.

The American Recovery and Reinvestment Act of 2009 authorizes a tax credit of up to $8,000 or 10% of the home's value, whichever is less - on their 2008 or 2009 taxes for qualified first-time home buyers purchasing a primary residence on or after January 1, 2009 and before December 1, 2009. This is too good to miss - it's a $8,000 tax CREDIT (not deduction but a credit).

To qualify for the credit, the purchase must be made between Jan. 1, 2009 and Nov. 30, 2009. Buyers may not have owned a home for the past three years to qualify as a "first time" buyer. They must also live in the house for at least three years, or they will be obligated to pay back the credit.

Additionally, there are income restrictions: To qualify, buyers must make less than $75,000 for singles or $150,000 for couples. Higher-income buyers may receive a partial credit.

Applying for the credit is easy - just claim it on your return on the First-time homebuyer form*. Taxpayers who have already completed their returns can file amended returns for 2008 to claim the credit. 

For more information about this new tax credit click here.  If you're planning to purchase or sell a home or have any questions about current market conditions, please fell free to contact me by email denise@denisemreed.com or by phone 207-356-3906. 

 *Please seek advice from your tax professional to make certain you qualify for this tax credit.

~Gary Keller, introduction to "Shift"

I'm currently reading Gary Keller's new book titled "Shift" -How top Real Estate Agents tackle tough times.  When I read this paragraph I thought he was referring to the current market, not what was happening 30 years ago.  Real Estate Markets do shift and the challenging market we're currently experiencing has happened before and will happen again. 

I like to think of myself as an optimist and there are some positives to this market.  If you're a buyer  there's a large inventory of affordable homes,  interest rates are at historic lows, and there are tax incentives for first time hombuyers. If you're selling and purchasing a home, you  may not make as much of a profit on your property, but you will make it up on the buying end.

 As the saying goes, "this too shall pass".  The shift in this market will start moving on an upward trend, we just don't have that crystal ball to know when.  The experts are saying through the summer of 2009.  According to the National Association of Realtor's sales are expected to edge up 6% in 2009 as well an increase in national average prices from last year.   Interest rates aren't expected to drop next year unless a federal interest-rate buydown occurs, which is what the NAR is pushing for.  Even though the market has it's challenges, I look forward to helping buyers and sellers achieve their real estate goals in 2009. 

 Please give me a call if you have questions about the current market conditions or if you're planning to buy or sell this upcoming year.  

If the truth be told, I really am not a fan of snow, but it certainly does get me in the Christmas spirit.  It forces us to stay home and be safe and sound with our Families instead of dealing with the crowds at the mall.  It's mother nature's way of saying slow down and enjoy this special time of year and reflect on your successes, challenges, and hopes and dreams for the new year.  Yes, I'm dreaming of a White Christmas just like the ones I used to know....May your days be merry and bright and may all your Christmas' be white.  I wish you a Merry Christmas and Happy, Healthy and Prosperous New Year!

Interest rates are falling! -Great news for Homebuyers and homeowners considering refinancing.

The Reason for the lower rates is the 30-year Treasury bond yields fell to record lows for a third consecutive day after the Federal Reserve said it plans to make weekly purchases of the debt of mortgage issuers to drive borrowings costs lower.

Here’s an example of current rates:

PRODUCT		RATE	POINTS	APR	CHANGE
FHA 30 Year Fixed		5.50%	0.00	5.85%		0.000%
FHA 15 Year Fixed		5.38%	0.00	5.85%		0.000%
VA 30 Year Fixed		5.50%	0.00	5.85%		0.000%
VA 15 Year Fixed		5.44%	0.00	5.85%		0.000%
30 Year Fixed		5.38%	0.00	5.41%		0.000%
20 Year Fixed		5.31%	0.00	5.58%		0.000%
15 Year Fixed		5.21%	0.00	5.41%		0.000%
3/1 ARM		5.75%	0.00	0.00%		0.000%
5/1 ARM		5.70%	0.00	5.65%		0.000%
10/1 ARM		6.63%	0.00	0.00%		0.000%

This could be the boost we need to stimulate the current housing market.  This is a great opportunity to buy with low prices, a great selection of homes, and lower rates.  If I can be of assistance in your home search and/or with the prequalification process, please contact me.

If you have not owned a home in three years, you qualify as a first time home buyer. If you buy a home after April 9, 2008 and before July 1, 2009, you qualify for this credit. Call your friends who just bought a home since April 9th and tell them they may take $7,500 off their tax bill if they qualify. It has to be your principal residence, so rentals do not count.

The tax credit is 10% of the cost of the home, up to a maximum of $7,500. This is not an additional deduction that lowers the amount of income to be taxed, it is a tax credit. In other words, you take $7,500 off your tax bill. But there is a catch; the credit you receive now is actually an interest-free loan that must be repaid.

The loan has no interest, and will be paid back over 15 years. You get the credit on your 2008 taxes, but you start paying it back on your 2010 taxes that are due in 2011, so you get at least two years without a payment. You pay back 6.67% of the credit each year, so for a $7,500 credit the payment is $502.50 per year. If you stay put for 15 years, you pay it off with no interest.

What happens if you sell the house? You pay the balance back at the closing. So, you get $7,500 now, and pay the rest of it back if you make money on the sale of your house. What happens if you do not make enough money when you sell your house? They forgive the rest of the debt.

Other restrictions stipulate that you have to buy your first house in three years before July 1, 2009, not have super high income, not use bond financing and buy anywhere in the US.

If you'd like to learn more about this program, please call me!

Home prices are one factor in determining your cost of ownership, but so are interest rates and financing availability. Even though interest rates have gone up in the last six months, they are still near historic lows. Since your monthly mortgage payment is a combination of paying down your principal and paying the interest owed, if home prices come down a little further but interest rates go up, it could cost you even more to service a mortgage on an identical home!

While a home is a major investment, it is also the center of your personal life. It's important to live in a home that reflects your taste and values, yet is within your financial "comfort zone." To that end, it may be more important to lock in today's relatively low interest rates and low home prices, rather than to hope for a further break in prices in the future.

Please give me a call if I can be of any assistance in determining how much home you can afford in today's market.