Maine Home Prices Rose 12 Percent in 2022

PORTLAND, ME (January 20, 2023) – Legacy Properties Sotheby’s International Realty, Maine’s leading luxury property company, with offices in Portland, Kennebunk, Brunswick, Damariscotta, Camden, and Northeast Harbor, announces that the real estate market in Maine adjusted during the 2022 sales year due to an increase in mortgage interest rates and a shortage of available homes for sale. Statistics released by Maine Listings indicate a 17.49 percent decrease in single-family existing home sales last year. Home prices, however, continue to rise. The median sales price (MSP) for the year reached $335,000—up 12.04 percent over 2021. The MSP indicates that half of the homes were sold for more and half sold for less.

“The sales year ended with just over 16,800 homes sold and a median sales price of $335,000—down 8.5 percent since its peak in June,” says Carmen McPhail, 2023 President of the Maine Association of REALTORS® and Associate Broker at family-owned United Country Lifestyle Properties of Maine, with offices in Lincoln, Bangor and Lubec. “Overall, the numbers reflect the impact of mortgage rate increases, the typical fourth-quarter seasonal slowdown and a continued shortage of for-sale housing inventory.”

Statistics gathered by Maine Listings for the month of December 2022 indicate an 8.9 percent MSP increase to $330,000 compared to December 2021. Sales declined 36.6 percent comparing December 2022 to December 2021.

According to the National Association of Realtors, single-family home sale across the county declined 33.5 percent comparing December 2022 to December 2021, and the MSP rose 2.0 percent to $372,700. Regionally, December 2022 sales in the Northeast were down 28.8 percent compared to December 2021 and the MSP increased 1.6 percent to $391,400.

“We’re seeing a bit of a pause as buyers and sellers are adjusting their expectations due to today’s less-favorable financing terms compared to mid-2022,” added McPhail. “As we move through 2023, we expect would-be buyers to re-engage with the market and the demand for residential real estate to remain high. Conditions are favorable for a gradual balancing of the real estate market.”

Below are two charts showing statistics for Maine and its 16 counties. The first chart lists statistics for the month of December 2021 and 2022 only, statewide. The second chart compares the number of existing, single-family homes sold (units) and volume (MSP) during the full 12-months of 2021 and 2022.

Legacy Properties Sotheby’s International Realty can be reached at 207-780-8900 and info@legacysir.com. Legacy Properties Sotheby’s International Realty, with offices in Portland, Kennebunk, Brunswick, Damariscotta, Camden, and Northeast Harbor, is Maine’s leading luxury and lifestyle property company with more than 90 agents and six offices serving Maine coastal communities from York County to Hancock County as well as Seacoast New Hampshire.

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