The real estate sector, a leading driver of Maine’s economy, rose 2.4% over last year according to the latest data from the Maine Real Estate & Development Association (MEREDA). In its semi-annual report on the state of Maine’s real estate industry, the MEREDA Index, increased to 78. The increase in the Index is attributed to the overall increase in the real estate industry—specifically residential home sales, commercial transactions, occupancy rates and new construction jobs. This is the second consecutive increase in the Index since its inception.
“This third release of the MEREDA Index shows signs of an improving real estate economy for the State,” said Drew Sigfridson, President of MEREDA and Managing Director with CBRE | The Boulos Company. “With the health of the economy directly tied to our industry we can be optimistic about the future and that we’ve turned the corner.”
The data shows that the residential components continue to provide the major impetus to growth over the past year with a 7% increase. The commercial market showed a slight decline of 1%, with construction employment up slightly, 0.5%.
The MEREDA Index provides insight into what’s fueling real estate growth, predicts future trends and, most importantly, demonstrates the correlation between Maine’s commercial real estate market and the overall strength of the economy. The biannual MEREDA Index is a composite of nine measures reflecting both new development and transactions involving existing properties and covers both the commercial and residential markets statewide.
Data sources for the Index include: The Maine Association of Realtors, CBRE | The Boulos Company, Maine Department of Labor, Mortgage Bankers Association, and Moody’s Analytics.
For more information about the MEREDA Index and to view the report, click here.
About the Maine Real Estate & Development Association (MEREDA)
MEREDA is a nonprofit whose members banded together in 1985 to present the views of the state’s real estate industry to lawmakers in Augusta. Today, MEREDA’s more than 280 member firms are primarily from the commercial real estate industry and employ thousands of Maine citizens and drive a huge percentage of Maine’s economic activity. The organization aims to promote fair, responsible development and ownership of real estate throughout Maine. For more about MEREDA, visit www.mereda.org.