Hey there, fellow real estate enthusiasts!
If you've been keeping an eye on the Maine market in Q1 of 2023, you'll know that things have been shifting around quite a bit. The Covid "FOMO" is definitely over, and that's a good thing! We realtors finally have a chance to catch our breath and connect with our clients on a deeper level. But let's get down to the nitty-gritty - what's been happening in the market?
Single-family homes in Maine have seen a median price increase of 9.2% to $330,000, but 24.2% fewer homes were sold. It took 11 more days to sell a home, and sellers received slightly less than the asking price. Condos, on the other hand, had a significant median price increase of 15% to $375,000, but 12% fewer condos were sold, and it took 11 more days to sell a condo. Sellers received over their asking price, but less than in 2022.
Southern Maine homes sold more quickly, with a median of 11 days on the market and over the asking price, while the median home price rose modestly by 3.6% to $455,000. However, the number of single-family homes shrunk by 24%.
The slowdown in the market can be attributed to two main factors: firstly, with interest rates on the rise, homeowners who have already settled in with a sweet 3% rate are less likely to trade up to a home with a higher 6 or 7% interest rate. Secondly, there's less urgency to move due to the easing of Covid-related pressures, much like how the hype around Peloton bikes and dog adoptions has leveled off a bit.
But what about Portside? We're happy to report that we did exceptionally well, maintaining our ranking as the #3 brokerage in Maine for sales volume, and even growing when others didn't. We have dedicated full-time career agents who work tirelessly to provide the best service to our clients, a strong in-house database of listings, and a culture of collaboration that sets us apart.
Looking ahead to this spring, we can expect a seasonal uptick in new inventory hitting the market as sellers look to capitalize on historically high home prices in Maine. This presents an opportunity for baby boomers to downsize their homes, creating more room for the younger generation. Millennials are expected to continue driving the housing market, with many reaching their peak home-buying years in the coming years. Typically, around one-third of all homebuyers are first-timers, with an average age range of 33-36. Often overlooked in the housing market are women, who make up a significant 17% of all buyers as single women homebuyers
This upcoming spring, we can expect a slight decline in residential real estate sales compared to last year. This is due in part to the stabilization or even slight decrease in rental prices, leading many Gen Zers and young millennials to continue renting for the time being. As a result, builders may shift their focus towards constructing more multifamily rental properties. Additionally, the pandemic-driven migration from one region to another is anticipated to ease off. Despite these factors, the real estate market is expected to remain strong, as I forecast a single-digit price growth that will help protect home values. This is great news for both buyers and sellers, as it indicates a stable and balanced market that can be navigated with confidence.
So, there you have it - the latest scoop on the Maine real estate market!
If you're looking to sell your home for a great price or find your dream home, we're here to help! Don't hesitate to reach out, and be sure to sign up for our newsletter by contacting me or follow me on social media for more updates on the Maine real estate market.