As the COVID market rally seems to be coming to an end, a rapid rise in mortgage rates, inflation, and heightened volatility in the stock market have changed the dynamics of the real estate market across the country, but what are the implications for Maine? Below are helpful graphics to understand the shift in the real estate market from 2019 to today in competitive coastal communities across the state.
While Maine real estate has experienced a moderation in sales price growth, an increase in days-on-market, and a “list price to sales price” ratio falling below 100%, it is critical to remember that these metrics all remain at or near all-time highs. When comparing the market to that of 2019, which was a robust year for Maine real estate, active homes for sale and unit sales are down slightly despite the increased demand while average sales prices are up by an astounding 50% in just 3 years.
As we are experiencing the housing market begin to shift, there is a silver lining for Maine as it has a small real estate market with lower volatility than other major housing markets, and is still a highly desirable place to live and work. Maine remains very attractive to buyers and is struggling to supply the inventory of homes for sale to meet this buyer demand. As a result, there is still an imbalance of supply and demand which will likely continue through 2023, making it difficult to foresee sale prices declining in a significant way.
The unprecedented growth of Maine real estate prices has changed the dynamics of the market and is an important factor to consider in making your next real estate decision. If you would like an expert opinion of your home’s value or a personalized analysis of your community, town, or region, please do not hesitate to reach out to one of our experienced real estate agents or contact us at email@example.com.
York County Coastal Communities
When comparing home sales in coastal communities in York County from 2019 to today, the most dramatic changes are an increase in the average sale price of nearly 50% (keeping in line with the statewide trend) and a 70% decrease in median days on market, down to only a week.
Cumberland County Coastal Communities
When comparing home sales in coastal communities in Cumberland County from 2019 to today, there is a similar increase in the average sale price of slightly higher than 50% (keeping in line with the statewide trend). The number of active homes for sale changed at a similar rate to coastal communities in York County, decreasing 36%.
Below are competitive towns within Cumberland County:
The average sales price of homes in Cape Elizabeth has increased the most significantly among these communities with a 71% jump from $643,969 in 2019 to over $1,100,000 in three years.
Midcoast Coastal Communities
When comparing home sales in coastal communities in the Midcoast region from 2019 to today, the average sale price of homes in the area has increased by 70%, much higher than the statewide rate. The number of active homes for sale has changed at a similar rate to coastal communities in Cumberland and York Counties, with a decrease of 34%.
Damariscotta has experienced stunning sales price growth of 108% since 2019.
Downeast Coastal Communities
When comparing home sales in coastal communities in Downeast from 2019 to today, the average sale price of homes in the area has increased by 39%, less than the statewide rate but still significant. However, the number of active homes for sale dropped even more than in coastal communities elsewhere in the state, with a decrease of 42%.