SALES PRICES UP AND SALES EASE IN MAINE AUGUSTA (Jan. 19, 2024)
The real estate market in Maine remains robust, though a lack of inventory and current interest rates contribute to unbalance the singlefamily existing home market. Maine Listings today reported a median sales price (MSP) rise of 6.21 percent to $350,500 in December 2023 compared to December 2022. The MSP indicates that half of the homes were sold for more and half sold for less. Sales were down 6.14 percent comparing December 2023 to December 2022.
“The 2023 sales year ended with 13,622 residential transactions and a median sales price of $360,000—up 7.46-percent from a year ago,” says Paul McKee, 2024 President of the Maine Association of REALTORS® and Broker affiliated with Keller Williams Realty in Portland. “Throughout Maine, real estate markets continued to be impacted by increased interest rates and sellers’ ongoing reluctance to list due to the supply/demand issues the industry is experiencing; this, in turn, prolongs the shortage of homes available for sale.
“We’re beginning to see more homes on the market than a year ago, yet at a 2.7- months’ supply of available for-sale inventory, we will need more than twice the current inventory to reach a more balanced market—which is indicated by a sixmonth supply. The key to solving some of the issues regarding supply and demand is development of affordable and accessible homes throughout our state,” says McKee.
According to the National Association of Realtors, sales of single-family homes nationwide were down 6.1 percent in December. The national MSP of $387,000 represents a rise of 4.0 percent from last December. Regionally, sales in the Northeast decreased 9.6 percent and the regional MSP reached $428,100, a rise of 9.4 percent comparing December 2023 to December 2022.
“Looking forward to the new year, we expect buyer demand to remain strong,” adds McKee, “Move-in ready, properly priced properties continue to receive multiple offers in most areas of Maine.”