Buyer demand remains healthy in Maine, while rising interest rates and tight inventory continue to affect the real estate market. Maine Listings today reported a 7.79 percent rise in the cost for a single- family existing home, which reached a median sales price (MSP) of $332,000 in October 2022 compared to October 2021. The MSP indicates that half of the homes were sold for more and half sold for less. October 2022 sales dipped 23.41 percent compared to a year ago, due to the existing market factors.
“After a two-year streak of double-digit pricing increases, we’re finally seeing some relief,” says Madeleine Hill, 2022 President of the Maine Association of REALTORS® and Designated Broker at Roxanne York Real Estate in Harpswell. “While demand remains steady for Maine’s tight for-sale inventory, increased mortgage interest rates have impacted the market. Buyers who need to finance their home have less purchasing power, and the recent pricing deceleration indicates that sellers are adjusting.
‘Sales volume last month outpaced the number of homes coming onto the market, and for-sale inventory remains tight with eight percent fewer homes on the market in October 2022 compared to September 2022 – and 58 percent fewer homes for sale than pre-pandemic October 2019,” added Hill.
The National Association of Realtors reported a 28.2 percent decline in sales nationwide, with a national MSP of $384,900—a rise of 6.2 percent in the past year. Regionally, sales in the Northeast reflected a similar trend, with a decline of 23 percent compared to October 2021. The regional MSP jumped 8.0 percent to $408,700.
Said Hill, “With nearly 1,600 sales, October 2022 was the 7th best October in the 22 years of available records.”