The Goff Report – Cumberland County, Maine, March 2018

Local Market Update for Cumberland County, Maine

Number of sales down 5.54%, median sales price up 12.31% (wow!), median days on the market down 10.26%, number of new listings down 5.65% in the first quarter of 2018. All signs point to a continuation of a seller’s market in Cumberland County! The limited inventory seems to be driving up prices and reducing the days on the market.  35 days on the market for Cumberland County as a whole I thought was high, and I confirmed that it is vastly different from the 15 days on the market (not seen below. I just ran the numbers for Jan-March 2018) we’re seeing on listings in Portland.

With interest rates rising, time will tell how long the seller’s market will last.

 

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First Quarter Update

Cumberland County, Maine

January 2018 – March 2018

January 2017 – March 2017

% Change Year-Over-Year

Number of Sales

665

704

-5.54%

Median Sale Price

$295,000

$264,000

12.31%

Median Days on the Market

35

39

-10.26%

Number of New Listings

902

956

-5.65%

Number of Sales: The number of properties sold.

Median Sales Price: The midway final price of all properties sold. Half sold for more, half sold for less.

Median Days on the Market: The midway point of days between a listing going on the market and accepting an offer. Half were on the market longer; half were on the market for less time.

Number of New Listings New home listings during the month(s) specified.

Sales were compiled on April 4, 2018, from Maine MLS data from sales of single family homes.
Data based on information from the Maine Real Estate Information System, Inc. (d/b/a Maine Listings) for the period January 1, 2017 through March 31, 2017 and January 1, 2018 through March 31, 2018.


Posted on April 5, 2018 at 10:31 AM
Derek Goff | Posted in Cumberland County, The Goff Report | Tagged , , , , , , ,

The Goff Report – York County, Maine, March 2018

Local Market Update for York County, Maine

First quarter numbers are in! Median sales price saw an improvement of 12.45% in the first quarter compared to a year ago! The number of new listings lagged behind 2017’s numbers by 9.43%, limiting the supply of homes for sale, and driving up the demand. The limited inventory is becoming an issue for buyers this year, as it was in 2017, driving prices up and continuing the seller’s market. With interest rates rising, limiting buying power, will this continue? Time will tell…

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First Quarter Update

York County, Maine

January 2018 – March 2018

January 2017 – March 2017

% Change Year-Over-Year

Number of Sales

558

534

4.49%

Median Sale Price

$275,500

$245,000

12.45%

Median Days on the Market

41

44

-6.82%

Number of New Listings

758

838

-9.43%

Number of Sales: The number of properties sold.

Median Sales Price: The midway final price of all properties sold. Half sold for more, half sold for less.

Median Days on the Market: The midway point of days between a listing going on the market and accepting an offer. Half were on the market longer; half were on the market for less time.

Number of New Listings New home listings during the month(s) specified.

Note: Sales were compiled on April 4, 2018, from Maine MLS data from sales of single family homes.

Data based on information from the Maine Real Estate Information System, Inc. (d/b/a Maine Listings) for the period January 1, 2017 through March 31, 2017 and January 1, 2018 through March 31, 2018.


Posted on April 5, 2018 at 10:19 AM
Derek Goff | Posted in The Goff Report, York County | Tagged , , , , , , ,

Why do you need to avoid overpricing your home

Following a recent listing appointment, I was asked, “If this is a seller’s market, why don’t we list $20,000 above market value and see what happens?”

Believe me, if I thought we could get $20,000 above market value on any of my listings, I would go for it! After all, the more money you sell your home for, the more we both get paid!

To help explain why this is not in your best interest to get the top price, I’ll use a couple of charts below.
One thing to keep in mind is that when your home is first listed is when it gets the most activity (showings). As days and weeks go by, you can expect the activity to subside.
You do get a small increase in activity after each price break, but it won’t match that first week or two. Because of this, we want to maximize our chances at getting an offer (ideally, multiple offers) during that first week or two.
Let’s say we price it at $270,000, but the market value (what the comparable homes are selling for) is somewhere around $250,000. We may get five showings that first week, three the second. These buyers know the market and have seen other homes priced at $270,000. They’ll recognize that your home is overpriced and move along. As the days on the market creep up in numbers, the less activity you will get. At around 30 days is usually when we start talking about price breaks in today’s market, and let’s say we reduce the price to $260,000 after 30 days. We then may get four showings the first week, then two the second. Again, buyers are aware of the market in this price range and feel it’s overpriced. Another 30 days go by and we hit the $250,000 price point. By now, it’s been on the market for 60 days. Buyers that see this often think that something’s wrong with the home. They also see that you’ve made two price reductions so assume you are desperate. You then get offers, but they are low ball offers. Offers like $20,000 below what you’re asking. You then begin thinking, “well, this is the best we’ve gotten, so we should try negotiating.” You then end up selling for the home for less than market value. Here’s a chart that may better illustrate the scenario:
Long story short, we want offers (plural) as quickly as possible. If we price at market value, get a ton of interest, and end up getting multiple offers, these multiple offers drive up the price. Now, this doesn’t always happen, but this is what we try to work towards. Since “Days on Market” are our enemy, I like to do a “Coming Soon” campaign which drives up demand before listing in the MLS. There are many details that have made past “Coming Soon” campaigns ridiculously successful, so contact me for more info!
Another thing to consider is the appraisal process. Since most real estate transactions involve a loan, the lender will only lend an amount up to the appraised price.  What happens if the appraised value comes in lower than the agreed upon sales price? Some appraisers will make things work if you’re within $10,000 of the value. For example, if we get multiple offers driving the price up to $255,000, some appraisers will work the numbers enough to make the value come out okay (some won’t, however, so keep that in mind!). Part of my job as your Realtor is to provide the appraiser with comparable homes that I found to justify the price, explain the activity the home received (if multiple offers, that helps our case!), benefits of the neighborhood, home improvements made since you purchased the home, and any and all amenities that justify the price.
The closer you price to market value, the more money you can expect from the sale!

Posted on March 30, 2018 at 11:34 AM
Derek Goff | Posted in Listing, Selling | Tagged , , , , ,

The Goff Report – Cumberland County, Maine, February 2018

Local Market Update for Cumberland County, Maine

The feeling other agents and I are getting is that the real estate market is shaping up to be a repeat of 2017, where there was a shortage of listings and a surplus of buyers. I’m working with several buyers who must act quickly (within a few days of a listing going active) or the home will be under contract with other buyers. Also, my clients have experienced several circumstances where there were multiple offers. I’m hearing similar stories from other agents in my office.

While there are no statistics available for number of buyers, the stats below don’t agree with/contribute to this feeling that it’s a seller’s market now, or is shaping up to be one. The number of new listings are about on par with where they were a year ago and the median days on the market saw a dramatic increase.

I thought maybe if I looked into just February, and took out December and January, it might be different. There was actually a higher percentage jump for number of new listings in February than the combined three month statistics (7.99% increase. 313 in February 2017 and 338 in February 2018). Also, the median sales price percentage jump was similar (6.54% increase. $260,000 in February 2017 and $277,000 in February 2018). The stats are similar when looking at Portland alone.

What explains this feeling that it’s shaping up to be a seller’s market? Maybe it comes down to the fact that well-maintained, fairly priced homes sell the quickest, and that’s what my clients (and most buyers) are after…

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Rolling Quarter Update

Cumberland County, Maine

December 2017 – February 2018

December 2016 – February 2017

% Change Year-Over-Year

Number of Sales

751

753

-0.27%

Median Sale Price

$287,000

$269,000

6.69%

Median Days on the Market

48

38

26.32%

Number of New Listings

689

608

0.57%

Number of Sales: The number of properties sold.

Median Sales Price: The midway final price of all properties sold. Half sold for more, half sold for less.

Median Days on the Market: The midway point of days between a listing going on the market and accepting an offer. Half were on the market longer; half were on the market for less time.

Number of New Listings New home listings during the month(s) specified.

Note: Sales were compiled on March 7, 2018, from Maine MLS data from sales of single family homes.
Data based on information from the Maine Real Estate Information System, Inc. (d/b/a Maine Listings) for the period December 1, 2016 through February 28, 2017 and December 1, 2017 through February 28, 2018.


Posted on March 12, 2018 at 12:00 PM
Derek Goff | Posted in Cumberland County, The Goff Report | Tagged , , , , , , ,

The Goff Report – York County, Maine, February 2018

Local Market Update for York County, Maine

December through February tends to be the slowest time of the year for real estate sales in Maine. The past three months were no different than in previous years. Sales were able to top 600 in York County during this period, but the number of new listings were down more than 8% from the same period the previous year. Median sales price saw a slightly higher value than the last Goff Report, but still remained lower than we saw in most of 2017 at 3.64%.

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Rolling Quarter Update

York County, Maine

December 2017 – February 2018

December 2016 – February 2017

% Change Year-Over-Year

Number of Sales

602

558

7.89%

Median Sale Price

$259,000

$249,900

3.64%

Median Days on the Market

47

41

14.63%

Number of New Listings

555

604

-8.11%

Number of Sales: The number of properties sold.

Median Sales Price: The midway final price of all properties sold. Half sold for more, half sold for less.

Median Days on the Market: The midway point of days between a listing going on the market and accepting an offer. Half were on the market longer; half were on the market for less time.

Number of New Listings New home listings during the month(s) specified.

Note: Sales were compiled on March  7, 2018, from Maine MLS data from sales of single family homes..

Data based on information from the Maine Real Estate Information System, Inc. (d/b/a Maine Listings) for the period December 1, 2016 through February 28, 2017 and December 1, 2017 through February 28, 2018.


Posted on March 12, 2018 at 11:44 AM
Derek Goff | Posted in The Goff Report, York County | Tagged , , , , , , ,

The Goff Report – Cumberland County, Maine, January 2018

Local Market Update for Cumberland County, Maine

Perhaps the biggest surprise for the market in November-January is that the median days on the market is up 9 days compared to this period a year ago! Based on this statistic alone, one would think that the market might be shifting to a buyer’s market, but if you look one stat up you’ll see that the median sales price was up 11.15%! It’s getting warmer out, the sun is out longer, and the snow should begin to melt any day now (it will eventually, I promise!). As sellers come out of hibernation this spring, time will tell whether we get a repeat of last year’s seller’s market…

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Rolling Quarter Update

Cumberland County, Maine

November 2017 – January 2018

November 2016 – January 2017

% Change Year-Over-Year

Number of Sales

922

891

3.48%

Median Sale Price

$289,000

$260,000

11.15%

Median Days on the Market

40

31

29.03%

Number of New Listings

703

699

0.57%

Number of Sales: The number of properties sold.

Median Sales Price: The midway final price of all properties sold. Half sold for more, half sold for less.

Median Days on the Market: The midway point of days between a listing going on the market and accepting an offer. Half were on the market longer; half were on the market for less time.

Number of New Listings New home listings during the month(s) specified.

Note: Sales were compiled on February 7, 2018, from Maine MLS data from sales of single family homes.
Data based on information from the Maine Real Estate Information System, Inc. (d/b/a Maine Listings) for the period November 1, 2016 through January 31, 2017 and November 1, 2017 through January 31, 2018.


Posted on February 12, 2018 at 1:25 PM
Derek Goff | Posted in Cumberland County, The Goff Report | Tagged , , , , , , ,

The Goff Report – York County, Maine, January 2018

Local Market Update for York County, Maine

Total sales jumped almost 10% over the last three months compared to a year ago.  Sales prices increased slightly and median days on the market decreased by four days. The number of new listings during this period is 7.18% lower than the year before. Cumberland County saw a small increase in new listings during this time. Could this be shaping up for a continuation of the seller’s market in York County?

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Rolling Quarter Update

York County, Maine

November 2017 – January 2018

November 2016 – January 2017

% Change Year-Over-Year

Number of Sales

749

682

9.82%

Median Sale Price

$252,000

$246,750

2.13%

Median Days on the Market

41

45

-8.89%

Number of New Listings

543

585

-7.18%

Number of Sales: The number of properties sold.

Median Sales Price: The midway final price of all properties sold. Half sold for more, half sold for less.

Median Days on the Market: The midway point of days between a listing going on the market and accepting an offer. Half were on the market longer; half were on the market for less time.

Number of New Listings New home listings during the month(s) specified.

Note: Sales were compiled on February 7, 2018, from Maine MLS data from sales of single family homes.

Data based on information from the Maine Real Estate Information System, Inc. (d/b/a Maine Listings) for the period November 1, 2016 through January 31, 2017 and November 1, 2017 through January 31, 2018.


Posted on February 12, 2018 at 12:50 PM
Derek Goff | Posted in The Goff Report, York County | Tagged , , , , , , ,

The Goff Report – 2017 Year in Review – Cumberland and York Counties, Maine

Local Market Update for Cumberland and York Counties, Maine

This month’s Goff Report contains the typical quarterly review, but I’ve added a bonus “Year in Review” where I drill down into stats with individual towns. Let’s start with a quarterly review of both Cumberland and York Counties. See the table below for statistics of the last quarter of real estate sales.

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Quarter Update

Cumberland County, Maine

October-December 2017

October-December 2016

% Change Year-Over-Year

Number of Sales

1067

1048

1.81%

Median Sale Price

$280,000

$260,000

7.69%

Median Days on the Market

32

23

39.13%

Number of New Listings

866

810

6.91%

 

York County, Maine

October-December 2017

October-December 2016

% Change Year-Over-Year

Number of Sales

877

684

28.22%

Median Sale Price

$264,000

$250,000

5.60%

Median Days on the Market

37

41

-9.76%

Number of New Listings

675

645

4.65%

Local Market Update for Cumberland and York Counties, Maine – Year in Review

Okay, onto the year in review. Why did I stick with Cumberland and York Counties? These are the counties where I do the most business. Sure, I’ve sold homes in Sagadahoc and Androscoggin Counties, and even a couple in Knox County, but Cumberland and York Counties are where I work most. The Maine Association of REALTORS® publishes statewide statistics, but I feel these are misleading. Real estate trends are local, and can vary from county to county, town to town, and even neighborhood to neighborhood. The real estate market in Presque Isle is vastly different from the market in Portland. Though the statewide statistics do tell a story, it doesn’t paint an accurate picture of the local real estate market. The same could be said about the counties I use. As you’ll see below in the town-by-town breakout, the market in Gray is vastly different than the market in Falmouth (take a look at the median sales price), even though they are separated by just one town. That’s why for the “Year in Review” I have isolated some of Portland’s surrounding towns to give you a better idea of the market in your hometown. Did I skip your hometown? Let me know, and I’ll add it to the list.

See the images and tables below for annual real estate statistics for Cumberland and York Counties **Oops, on the email I sent out I inadvertently showed that New Listings had increased in 2017 for Cumberland County. This has been corrected below. **:

  

Yearly Update – 2017 vs. 2016

Cumberland County, Maine

January-December 2017

January-December 2016

% Change Year-Over-Year

Number of Sales

4135

4305

-3.95%

Median Sale Price

$315,000

$295,000

6.78%

Median Days on the Market

18

21

-14.29%

Number of New Listings

5272

5571

-5.37

 

York County, Maine

October-December 2017

October-December 2016

% Change Year-Over-Year

Number of Sales

3147

3149

-0.06%

Median Sale Price

$297,500

$279,000

6.63%

Median Days on the Market

26

36

-27.78%

Number of New Listings

4252

4385

-3.03%

Monthly Comparisons

Let’s look at it month-by-month. This time, we’ll look just at Median Sales Price and Number of New Listings.  Here’s Cumberland County:

You’ll see that in March 2016 vs. March 2017, median sales price was almost identical ($259,750 in 2016 and $260,000 in 2017). We then saw a huge jump in April 2017 compared to April 2016. Remember that real estate sales typically take 30-60 days from offer acceptance to closing. So that April increase in sales price really began 30-60 days prior.

Why were prices higher this year? A large reason was due to inventory shortage. Here’s what the Number of New Listings looked like for each month for the past two years:

You’ll see in 2017 we didn’t see an increase in the number of new listings until May, when sellers finally recognized they should be capitalizing on the seller’s market! After the big jump in May, home sellers roughly kept on pace with 2016’s monthly number of new listings.

Here’s York County:

Unlike Cumberland County, York County didn’t see a month where median sales price was close to identical in 2017 compared to 2016 until December where the value was $248,100 in 2016 and $249,900 in 2017.

Sellers in York County didn’t realize they should be capitalizing on the inventory shortage until June, but only barely outpaced 2016 for the rest of the year.

Town-by-Town Breakdown

Let’s take a look at Portland and some of the surrounding towns.

Since Portland is the most populated city in Cumberland County (and Maine), I wanted to see how Portland fared compared to the whole of Cumberland County. See the table below.

Portland, Maine

January-December 2017

January-December 2016

% Change Year-Over-Year

Number of Sales

529

629

-15.9%

Median Sale Price

$286,000

$262,000

9.16%

Median Days on the Market

11

12

-8.33%

Number of New Listings

625

707

-11.6%

Not surprisingly, there was a more dramatic change in each category except for Median Days on the Market compared to Cumberland County as a whole. Most people like to look at the Median Sales Price, since that gives you a good idea of how much property values are fluctuating year-over-year. Portland saw a 9.16% increase in Median Sales Price, while the whole of Cumberland County saw a 6.78% increase.

This got me thinking. How do some of the surrounding towns compare? To minimize the chance of information overload, I took out Median Days on the Market and Number of New Listings for the surrounding towns. I started with the bordering towns and then went outward to include towns where I have interest. The interest in each town could be due to listings I had in 2017, and where I anticipate having listings in 2018, or just simple curiosity. In 2017 I sold homes in Freeport, Naples, Limington, Sebago, etc., but truth be told, I didn’t want to overload this blog post with a ridiculously large number of towns. If I missed your hometown, and you want to see data, please let me know!

January-December 2017

January-December 2016

% Change Year-Over-Year

Cape Elizabeth

Number of Sales

159

147

8.16%

Median Sale Price

$469,750

$462,500

7.41%

Cumberland

Number of Sales

163

188

-13.30%

Median Sale Price

$410,781

$360,219

14.04%

Falmouth

Number of Sales

195

202

-3.47%

Median Sale Price

$480,000

$467,750

2.26%

Gorham

Number of Sales

253

247

2.43%

Median Sale Price

$295,000

$265,000

11.32%

Gray

Number of Sales

144

152

-5.26%

Median Sale Price

$247,550

$219,950

12.55%

New Gloucester

Number of Sales

76

71

7.04%

Median Sale Price

$237,250

$219,000

8.33%

North Yarmouth

Number of Sales

70

50

40%

Median Sale Price

$377,500

$328,750

14.83%

Portland

Number of Sales

529

629

-15.9%

Median Sale Price

$286,000

$262,000

9.16%

Scarborough

Number of Sales

350

348

0.57%

Median Sale Price

$401,250

$369,000

8.74%

South Portland

Number of Sales

302

310

-2.58%

Median Sale Price

$261,500

$252,750

3.46%

Standish

Number of Sales

157

144

9.03%

Median Sale Price

$234,000

$220,100

6.32%

Westbrook

Number of Sales

243

274

-11.31%

Median Sale Price

$235,000

$224,700

4.58%

Windham

Number of Sales

289

321

-9.97%

Median Sale Price

$254,500

$235,000

8.3%

Yarmouth

Number of Sales

133

114

16.67%

Median Sale Price

$465,500

$414,750

12.24%

Not surprisingly, every town chosen saw an increase in Median Sales Price in 2017 compared to 2016. Historically, communities with good to great school districts tend to have property values that are more stable in down years, and increase more when the economy is good. While I wouldn’t consider any of the towns listed as being part of a poor school district, what surprised me the most is that Falmouth saw the lowest increase in Median Sales Price at just 2.62%. Gray meanwhile, a town in a school district that tends to get lower ratings than some of the surrounding communities, saw an increase of 12.55%.

Take a look at the values of the Median Sales Price in these two towns. Falmouth’s was double that of Gray’s in 2016 ($467,500 compared to $219,950), and only slightly less than double in 2017 ($480,000 compared to $247,550). Of all the towns listed, Falmouth had the highest Median Sales Price in 2016 and second highest (behind Cape Elizabeth) in 2017. Despite the more dramatic increase in sales price, Falmouth still attracts those with more spending power.

Let’s continue on that “great school district” train of thought. Take a look at increases at Cumberland, North Yarmouth, and Yarmouth. These three towns had three of the top four increases in Median Sales Price. They also have had nationally ranked school systems in recent years. Cape Elizabeth, the other town that has been seen on national rankings, saw a 7.1% increase, but jumped Falmouth as having the top Median Sales Price in 2017 at $496,750.

With 2017 now behind us, I don’t see any slowing down! 2018 is poised to be another record breaking year!

Number of Sales: The number of properties sold.

Median Sales Price: The midway final price of all properties sold. Half sold for more, half sold for less.

Median Days on the Market: The midway point of days between a listing going on the market and accepting an offer. Half were on the market longer; half were on the market for less time.

Number of New Listings New home listings during the month(s) specified.

Note: Sales were compiled on January 8, 2017, from Maine MLS data from sales of single family homes. To see complete data, go to http://TheGoffReport.DerekGoff.com.
Data based on information from the Maine Real Estate Information System, Inc. (d/b/a Maine Listings) for the period January 1, 2016 through December 31, 2016 and January 1, 2017 through December 31, 2017.


Posted on January 15, 2018 at 9:23 AM
Derek Goff | Posted in Cumberland County, The Goff Report, York County | Tagged , , , , , , , , ,

The Goff Report – Cumberland County, Maine, November 2017

Local Market Update for Cumberland County, Maine

September through November saw similar year-over-year increases to August through October. Sales are still up from a year ago, as is the median sales price and number of new listings. Seller’s still have an advantage in this market, though the median sales price increase of 5.09% is lower than the ~7% we’ve seen for most of the year. Stay tuned for next month, where I will compile statistics for all of 2017 for a year in review!

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Rolling Quarter Update

Cumberland County, Maine

September-November 2017

September-November 2016

% Change Year-Over-Year

Number of Sales

1170

1092

7.14%

Median Sale Price

$278,500

$265,000

5.09%

Median Days on the Market

19

22

-13.64%

Number of New Listings

1172

1093

7.23%

Number of Sales: The number of properties sold.

Median Sales Price: The midway final price of all properties sold. Half sold for more, half sold for less.

Median Days on the Market: The midway point of days between a listing going on the market and accepting an offer. Half were on the market longer; half were on the market for less time.

Number of New Listings New home listings during the month(s) specified.

Note: Sales were compiled on December 8, 2017, from Maine MLS data from sales of single family homes.
Data based on information from the Maine Real Estate Information System, Inc. (d/b/a Maine Listings) for the period September 1, 2016 through November 30, 2016 and September 1, 2017 through November 30, 2017.


Posted on December 14, 2017 at 10:29 AM
Derek Goff | Posted in Cumberland County, The Goff Report | Tagged , , , , , , ,

The Goff Report – York County, Maine, November 2017

Local Market Update for York County, Maine

Sales jumped over the last three months compared to a year ago.  The sales price increase remained consistent with last month’s rolling quarter update (8% increase in median sales price). Homes are still selling quite a bit quicker than a year ago, and the number of new listings again increased. I believe the market is still playing catch up from the shortage earlier in the year, so while we’re seeing an increase in new listings, inventory still remains low. Stay tuned next month for a 2017 year in review!

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Rolling Quarter Update

York County, Maine

September-November 2017

September-November 2016

% Change Year-Over-Year

Number of Sales

921

847

8.74%

Median Sale Price

$269,900

$250,0000

7.96%

Median Days on the Market

29

37

-21.62%

Number of New Listings

922

870

5.98%

Number of Sales: The number of properties sold.

Median Sales Price: The midway final price of all properties sold. Half sold for more, half sold for less.

Median Days on the Market: The midway point of days between a listing going on the market and accepting an offer. Half were on the market longer; half were on the market for less time.

Number of New Listings New home listings during the month(s) specified.

Note: Sales were compiled on December 8, 2017, from Maine MLS data from sales of single family homes.
Data based on information from the Maine Real Estate Information System, Inc. (d/b/a Maine Listings) for the period September 1, 2016 through November 30, 2016 and September 1, 2017 through November 30, 2017.


Posted on December 14, 2017 at 10:16 AM
Derek Goff | Posted in The Goff Report, York County | Tagged , , , , , , ,