Maine’s residential real estate market fared well during COVID-impacted 2020. Statistics released today by the Maine Association of Realtors and Maine Listings show a sales increase of 9.82% for all single-family existing homes sold during 2020. Values rose by double digits during the sales year; the statewide median sales price (MSP) reached $256,000—an increase of 13.78%. The MSP indicates that half of the homes were sold for more and half sold for less.
“2020 was a year like no other for residential real estate in Maine,” says Aaron Bolster, broker/owner of Allied Realty in Skowhegan and 2021 president of the Maine Association of Realtors. “The sales year ended with historic highs for the number of reported transactions (19,921) and median sales price ($256,000) since we began compiling data more than 20 years ago.”
During the month of December only, sales across the state of Maine were up 31.53% compared to December 2019, and the statewide MSP of $270,00 represents an increase of 15.38% from the previous year.
Nationally, December 2020 sales of single-family existing homes jumped 22.8% over December 2019. According to the National Association of Realtors, prices were also on the rise last month, with an increase of 13.5% to a national MSP of $314,300. Sales in the regional Northeast climbed 27.4% and the regional MSP reached $362,100—a jump of 19% comparing December 2020 to December 2019.
“Last year began with the positive momentum from 2019 and then was jolted in the second quarter by the arrival of COVID-19,” says Bolster. “Since July, sales demand and volume has been exceptionally strong. Coupled with tight for-sale inventory constraints, most markets have experienced double-digit appreciation for median sold prices.”
Added Bolster, “Sustained low mortgage interest rates, Maine’s rural geography and controlled COVID experience relative to the rest of the U.S., plus the emergence of teleworking, and the allure of our beautiful four-season recreational state has created unprecedented demand for residential real estate in Maine. We expect 2021 to remain strong with buyers searching for their new home as a long-term financial investment and a quality-of-life investment.”