Advisors Living presents the Residential Market Reports for 2023 vs. 2022. This comprehensive study encompasses Southern Maine. The Advisors Living dedicated research team used data that we deem reliable from sources such as MREIS, MaineListings, MAR, NAR, and public sales records through the Registry of Deeds. Here is a summary of the key points.
Despite the rise in interest rates, demand from buyers remains high. Inventory remains low creating favorable conditions for Maine sellers. Buyers looking to purchase single-family homes are encountering fewer properties for sale. The number of properties listed in Maine decreased by 10.5% year over year in 2023, while the statewide median sales price increased by 7.5% to $360,000.
Many potential sellers, benefiting from historically low interest rates, have chosen to stay put in their current homes. We are beginning to see more homes available for sale, but not nearly enough to satisfy the high demand from buyers. Developing affordable homes is key to solving some of the supply and demand issues.
In 2023, there were fewer single-family homes listed for sale across the state of Maine compared to the same period in 2022. This shortage of available inventory led to an increase in the Median Sale Price throughout most of Maine’s cities and towns. Most of Southern Maine’s communities experienced a decline in units listed and closed and increased selling prices. Cumberland and York counties show an 11.2% and 12.6% decline respectively in units listed year over year. Consequently, the median sales price is up 7.8% and closed sales were down 16.6% in Cumberland County. Similar in York County with sale prices up 5.6% and closed units down 22.3% Another indicator of a competitive market for buyers is that homes sold on average for 103.3% of their original asking price for Cumberland County.
In Portland, Maine’s largest city, the median sold price of $550,000 remained high, up 12.2% year over year. Property closings were down 22.5%, higher than the statewide sales which were down 18.8%. Additionally, new listings were also down 19.6% making for a challenging buyer market.
To summarize, the main challenge in the real estate market is the lack of inventory. Despite this, buyer demand is expected to remain high. That being said, the positive fundamentals such as income and employment rates give us reason to be optimistic about the future. The real estate climate for 2024 promises to be dynamic and our team of Residential Advisors are experts in their local markets, ready to help you navigate this challenging market. Whether you’re looking to buy or sell in southern Maine or surrounding communities, our team of respected advisors and leadership are looking forward to working with you and offering their expert advice for your next transaction.
