Have you ever heard someone say, “Both things can be correct at the same time”? Usually they’re talking about two things that SEEM contradictory, but aren’t necessarily. Well, in 2022 that pretty much sums up the Maine real estate market. For reasons we’ll go through in a moment, NOW is an unusually beneficial time to BOTH sell your house AND buy a house in Maine. Let’s see why …
Trends that Say “Sell Your House NOW!”
Thanks to the pandemic’s impact on the economy, the seller’s market in Maine over the past two years has been crazy-hot. Anyone who sold during that time typically made out like a bandit, with home prices skyrocketing an average of 33 percent. But you don’t have to be George Harrison to realize “all things must pass,” and that’s exactly what’s happening as we speak.
Why? Because rising interest rates have thrown sand in the market’s engine, a big reason why sales of single-family existing homes declined 9.83 percent last month, according to Maine Listings. And while the statewide median sales price hit $360,825 in June—an increase of 16.4 percent compared to June 2021—numerous media outlets, including Maine Public, have reported a falling demand for Maine homes. While that hasn’t yet translated into falling home prices, the Law of Supply & Demand says it soon will. So “Sell Your House NOW!” has become a very smart strategy for those who want to maximize their home-sale pay day.
Trends that Say “Buy a House NOW!”
Meanwhile, “the other half of the coin” is strongly suggesting that—for those who desire to buy a house—this summer offers very favorable market conditions. Due to the steady rise in interest rates, homes in many areas are now staying on the market for weeks instead of days, with fewer buyers competing for new for-sale listings. Here in Androscoggin County, home sales are down 13.93 percent from their red-hot sell-a-thon a year ago. This means for buyers a greatly under-appreciated and under-publicized trend of more choice, more home options, and, ultimately, a highly satisfactory buying experience. As reported by MaineRealtors.com, nearly 1,800 families found their opportunity and bought a home in Maine during June—the seventh best June since record-keeping began 21 years ago.
What Do Rising House Prices Mean
for Sellers and Buyers?
Whether you wish to sell your house or buy a house, a critical factor is home-price trends. According to the most recently-available statistics, home prices in Maine are up 18.6 percent compared to 12 months ago. No matter which side of the fence you are on—buyer or seller—that trend offers important decision-making data. For those who wish to buy, the data clearly says, “Buy NOW, because house prices will only be higher later in the year.” And for those who wish to sell, you are looking at soon-to-be flattening or falling home prices as the inexorable Law of Supply & Demand kicks in.
So that’s the unusual situation we’re now in, but it’s important to remember: It’s one in which BOTH sellers and buyers can greatly benefit if they act now.
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.