As we all gather for the holidays with family and friends, we thought we’d offer you this quick look at the current state of Maine real estate, and show you where home buyers and sellers currently stand. What were the key developments in 2022? What happened to home prices and sales, and what does that mean for you? Let’s take a few minutes to dive in.
Housing Market Levels Off—But Home Prices Still Rise
As reported by the Bangor Daily News—using updated statistics from the Maine Association of Realtors—the housing market “has shown signs of cooling in 2022,” yet the average price of a single-family home still soared 13.6 percent, to a record high of $332,000 during the period of January through October. The newspaper characterized this situation as offering “some big wins for sellers.”
There’s also ANOTHER huge “plus” for home sellers: While many U.S. states experienced “outmigration” (more people leaving than moving in) during 2022, Maine has become “The Most Moved-To State in the U.S.,” so it is hard to imagine the home sellers market in Maine experiencing much of a reduction in demand. In fact, with inventory remaining relatively tight and a continued influx of new and returning buyers, Maine is positioned to be among the strongest states in retaining or increasing home prices.
How 2022 Impacted Buyers
As 2022 dawned, the Federal Reserve Bank recognized its responsibility to address the 40-year-high inflation wracking the U.S. economy, and its response was to sharply increase interest rates. For those desiring to buy a home in Maine, this made 2022 a challenge, as mortgage interest rates nearly doubled from the beginning of the year to nearly 7 percent. Unfortunately, home buyers also experienced the “double whammy” of fewer homes being on the market. By October, that number had fallen 25 percent from October 2021.
But guess what? Even though the above facts and statistics might seem to point to a less-than-stellar environment for buyers, the fact is that home buyers are largely shrugging it off. According to a just-released press release from the Maine Association of Realtors, “Buyer demand remains healthy in Maine.”
Final Thoughts: Reasons for Optimism
Anyone who has ever invested in the stock market knows that some days the market will go down. But the more important thing to note is what the market does over time. The Maine Real Estate in 2022-2023 is like this. The fact is that—ever since the tail end of the Great Recession in 2011—home buyers and sellers in Maine have enjoyed a strong, relatively uninterrupted market. While such things as increased interest rates and lower home inventory currently are acting the way a bit of turbulence affects a jet, the Maine Real Estate Market remains remarkably vibrant. And statistics are indicating that home sellers and buyers know that—and are taking advantage.
About Maine Source Homes & Realty
Maine Source Homes & Realty is dedicated to helping you find your perfect home-ownership solution. Whether you wish to buy, sell, or build a home, Maine Source Homes & Realty invites you to benefit from our 50 years of trustworthy experience and expertise.