Maine Home Prices Rise More Than 14 Percent In August

PORTLAND, ME (September 22, 2021) – Legacy Properties Sotheby’s International Realty, Maine’s leading luxury property company, with offices in Portland, Kennebunk, Brunswick, Damariscotta, Camden, and Northeast Harbor, announces Sales of Maine’s single-family existing homes eased a slight 4.76 percent last month, according to Maine Listings. Realtors reported that 2,063 homes changed hands in August 2021, compared to 2,166 during August 2020.

Maine Home Prices continued their upward trajectory, with an increase of 14.81 percent to a statewide median sales price (MSP) of $310,000 comparing August 2021 to August 2020. The MSP indicates that half of the homes were sold for more and half sold for less.“

Residential real estate has been resilient as we transition through the pandemic,” says Aaron Bolster, Broker/Owner of Allied Realty in Skowhegan and 2021 President of the Maine Association of REALTORS®, “but has the market started to level? Sustained, intense demand coupled with constrained, and rapid turnover of for-sale inventory supply have pushed prices upward. Some potential buyers are choosing to take a pause from the market and some buyers who had been on the margins, no longer financially qualify without additional savings. With fewer potential buyers involved in multiple offer situations, the upward pricing pressure may slow.

”The National Association of Realtors reported a 2.8 percent nationwide sales decline for single-family existing homes in August 2021 compared to August 2020. August 2021prices, however, rose 15.6 percent over August 2020 to reach a national MSP of$363,800. Regionally, the Northeast experienced a 2.7 percent decrease in sales, while the regional MSP jumped 16.8 percent to $407,800.

“Maine’s sales volume dipped in August,” says Bolster. “The figures show a decline from August 2020 of -4.76 percent, and the August 2021 sales volume is -3.5 percent below pre-pandemic August 2019.

“However, sales volume for January through August 2021 is 12 percent ahead of the same time period from 2020, and 11.3 percent ahead of 2019. Fourth quarter will show if this August sales volume decline is the beginning of a market balancing or a just a blip.

”Below are two charts showing statistics for Maine and its 16 counties. The first chart lists statistics for the month of August 2020 and 2021 only, statewide. The second chart compares the number of existing, single-family homes sold (units) and volume (MSP)during the rolling three months of June, July and August (2020/2021).