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The real estate market in Maine experienced a rapid gain in the previous four years but began to decelerate in 2006, especially in major cities. By the second quarter of 2006, prices saw a steady decline, and the sale of single-family homes was low. However, compared to the historical average, the volume was high, like in Connecticut. The sale of real estate had a noticeable impact on the construction industry, despite the stability of employment levels.
It should be noted that employment in construction may decline if real estate sales do not improve. Despite this, the tourism industry in Maine has continued to grow, which has always been essential for the state. Studies indicate that the tourism industry in Maine has grown by over 3% in the last five years. Over 60% of jobs created during this period can be attributed to businesses such as entertainment, restaurants, and bars.
However, it should be noted that growth in the tourism industry is not as rapid as New Hampshire, a state close to Maine. In comparison, the national average for tourism is approximately 8%. The tax revenue of the state has also been impacted by trends in real estate and tourism.
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