Maine’s slowdown in home construction has been reflected not only in statistics but also in homebuilders’ confidence. Even home furnishing centers are experiencing a severe downturn in their businesses. A favorite destination among deer hunters, sport fishing enthusiasts, campers and hikers, 2009 will see a fewer tourists in the state.

The crisis has also extended to the states budget for universities in Maine. School boards are cutting down allocations for sports and drama clubs this year. Extra curricular activities are considered significant programs for student formation but lower tax collection equal less support from the state.

Lobster, a worldwide famous product of the state, is selling at cheap prices. Sellers are forced to mark down their produce but the problem remains in the low demand from buyers. With such slack in the economy, Maine’s housing market is expected to stall in 2009.

Bangor, the third largest city, is currently held up by high foreclosure accretion. During the property market boom a few years back, home prices have reached its all-time high before coming to a standstill last year. Its gambling and entertainment scenes are also held up by weak tourist arrivals. RealtyOulook.com expects home values to plunge by 12.5 percent this year.

In Portland, the real estate boom brought minimal appreciation in home values. It was supposed to be a good sign for the city since deflationary effects won’t be as drastic as compared to other states. However, the city’s home sales dropped too low and caused a surge in total inventory. Because of this, RealtyOutlook.com forecasts a 12 percent fall in home values.

The town of Bar Harbor in Mount Desert Island once had a healthy vacation home market two years ago where constructions focused on areas developed for resort villages. However, investors pulled out when the Dow Jones and S&P 500 turned bearish. What became apparent are vacant homes and condominiums that are awaiting bargain buyers. Not even the retirees are willing to put their money in the Hancock County estates. RealtyOutlook.com expects a 14 percent drop in home values.

Lewiston’s high foreclosure market is matched by a constant demand for resale homes in the area. Cheap prices are attracting buyers who are benefitting from the city’s housing downturn. However, as the market entered a new year, the inventory rose higher than the current buying. The home of the University of Southern Maine is likely to hit a 13 percent plunge in home prices this year

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