PORTLAND, Maine — The median home sale price in Maine has crossed the $400,000 mark for the first time, reaching a record-high of $406,000 in June, according to the latest data from the Maine Association of Realtors. This milestone underscores the ongoing surge in real estate prices that has characterized the state’s market over the past few years.
Decline in Home Sales
While prices continue to climb, the number of home sales has seen a decline. Compared to June 2023, closings fell by 10%, with 1,291 homes changing hands last month. "It was only a matter of time before Maine crossed the threshold," said Paul McKee, president of the Maine Association of Realtors. "It’s no surprise at this point, but it’s unfortunate as well because it speaks to affordability."
Inventory Challenges
Despite the drop in sales, there are signs of improvement in housing inventory. McKee reported that there are currently 4,400 homes on the market, marking the fourth consecutive month of notable improvement and the highest level of inventory in almost three years. However, prices are expected to continue appreciating as long as inventory remains limited.
County-by-County Analysis
The Maine Association of Realtors also provided a detailed county-by-county analysis. Cumberland County remains the most expensive, with a median sale price of $580,000, followed by York County at $523,750 and Knox County at $497,500. Piscataquis County saw the largest price increase, with a 42% jump from $170,000 to $241,000. Conversely, Washington County experienced the largest price decrease, with a 16.5% drop from $221,000 to $185,000.
National Trends Reflect Maine’s Market
Maine’s real estate trends mirror the national market. According to the National Association of Realtors, single-family home sales fell by about 4% last month compared to June 2023, but the median sale price increased by 4% to $432,700. In the Northeast, home sales dipped by 6%, while prices jumped by almost 10% to a median of $521,500.
Shifting Market Dynamics
Lawrence Yun, chief economist for the National Association of Realtors, suggested that the market is beginning to shift from a seller’s to a buyer’s market. "Homes are sitting on the market a bit longer, and sellers are receiving fewer offers. More buyers are insisting on home inspections and appraisals, and inventory is definitively rising on a national basis," Yun said.
Mortgage Rates and Market Outlook
Mortgage rates are also trending downward, with the current average rate for a 30-year mortgage at 6.77%, down from 6.89% the previous week. Despite the lower rates, buyer demand has yet to respond significantly, remaining about 5% below spring levels when rates were similar.
The ongoing adjustments in the market suggest a complex and evolving landscape for both buyers and sellers in Maine and across the country.
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