2022 Fall Update
Mortgage Rate Lockdown may be an unfamiliar term in the uncharted waters of the recent housing industry. Historically, we have seen much higher interest rates, for example back in October of 1981, the interest rate was 18.45%. Despite that number, buyers and sellers still bought and sold houses. Perhaps you were in the market then? If not, ask someone who was and they will be able to tell you exactly how high their rate was, or just how many points they had to pay to help sell their home. What is different today is the pace of change and the length of time. In January of 2021, the lowest average mortgage rate was 2.74%. Just this week, the average mortgage rate clocked in at 7.08% - an increase of 4.34% within 22 months. The chart to the right shows the roller coaster ride. Noting the change in rates is one thing, but the change in payments is the real issue. Below is a chart showing the change in payments.
Theoretically, some buyers would likely not be able to buy their same home at the same price, as their payment would be too high. Since most buyers in the marketplace are first sellers, this is where the Mortgage Rate Lockdown comes into play. With an estimated 70-80% of homeowners having rates under 4%, they will likely think twice about selling right now. Does that mean the real estate market is dead and that prices will plummet? Actually no. Inventory is remaining so low, at so many price points, that multiple offers are still happening. The market is not crashing. The market is normalizing. The Fed has simply grown too frustrated with the role the housing market has played into the pace of inflation, and their only tool is to raise rates to slow things down. Sources: Freddiemac.com, Maine Real Estate Information System, Redfin.com
THIRD QUARTER: 2021 vs 2022 Cumberland County Q 3 2 0 2 2 , Yo Y C h a n g e
Median Sales Price
$480,000
$424,900
9%
1%
$
Median Days on Market
6 Days
20%
Median Sales Price
$352,500
14%
Sold Volume
$549 Million
7%
$
Median Days on Market 6
Units Sold
1,405
Q 3 2 0 2 2 , Yo Y C h a n g e
Median Sales Price
Sold Volume
$845 Million
Sagadahoc County
Yo r k C o u n t y
Q 3 2 0 2 2 , Yo Y C h a n g e
7 Days
16%
9%
1,079
Sold Volume
$67 Million
5%
$
Median Days on Market 7
Units Sold SOLD
3%
7 Days
16%
7
Units Sold SOLD
14%
158
0%
Months of Inventory
Months of Inventory
Months of Inventory
1.06 Months
1.43 Months
1.30 Months
SOLD
Androscoggin County Q 3 2 0 2 2 , Yo Y C h a n g e
Contrary to what you may hear on the national news about home prices, here in Maine prices still rose year-over-year, just at a lower pace. These charts tell many stories. For example, buyers have been priced out of the greater Portland area and this is causing prices in Lewiston and Auburn to rise. However, all of these markets saw houses go under contract in one week or less. The declining number of homes for sale is helping to keep the prices strong. We simply do not have enough houses to meet demand.
Median Sales Price
$270,000
12%
Sold Volume
$119 Million
3%
$
Median Days on Market
6 Days
0%
6
Units Sold
414
SOLD
7%
Months of Inventory
1.16 Months
Based on information from Maine Real Estate Information Systems, Inc. (d/b/a Maine Listings) figures pulled on October 20, 2022 for the period of July 1, 2021 through September 30, 2021 and July 1, 2022 through September 30, 2022
MEDIAN PRICE OF A HOME THIRD QUARTER 2021 VS 2022
3rd Quarter 2021 vs 3rd Quarter 2022 Southern Maine
Greater Portland Portland South Portland Westbrook Windham Gorham Gray Cape Elizabeth Scarborough Falmouth Cumberland North Yarmouth Yarmouth Freeport
2021
2022
% Change
$459,000 $410,000 $357,500 $400,000 $410,000 $352,900 $725,000 $567,480 $750,000 $690,000 $661,562 $620,000 $453,000
$500,000 $495,000 $425,000 $480,000 $457,732 $422,000 $702,200 $612,500 $652,500 $735,000 $691,720 $700,000 $593,750
9% 21% 19% 20% 12% 20% -3% 8% -13% 7% 5% 13% 31%
2021
2022
% Change
$376,500 $359,250 $685,000 $311,000 $328,000 $975,000 $260,000 $467,500 $250,000 $240,000 $228,500
$388,750 $369,900 $630,000 $309,000 $675,000 $652,000 $298,000 $557,500 $250,000 $264,500 $309,500
3% 3% -8% -1% 106% -33% 15% 19% 0% 10% 35%
Midcoast Brunswick Topsham Harpswell Bath Phippsburg Georgetown Wiscasset Boothbay Waldoboro Thomaston Rockland
Saco Biddeford Buxton Standish Kennebunk Kennebunkport Wells York Sanford Waterboro
2021
2022
% Change
$357,000 $357,000 $369,900 $340,000 $471,868 $850,000 $365,000 $591,300 $267,000 $294,000
$425,750 $405,000 $370,000 $385,000 $600,000 $865,000 $447,735 $650,000 $303,000 $342,500
19% 13% 0% 13% 27% 2% 23% 10% 13% 16%
2021
2022
% Change
$246,000 $343,250 $255,000 $355,000 $435,000 $306,500 $365,000 $297,000 $305,000 $229,500
14% 44% 20% 7% 64% -2% 18% 45% 11% -13%
Central Maine Augusta Hallowell Gardiner Belgrade Manchester Winthrop Readfield Vassalboro Dresden Whitefield
$215,000 $239,000 $212,000 $331,000 $266,000 $312,500 $310,000 $205,000 $274,750 $265,000
Lakes Region and Lewiston-Auburn Raymond Casco Naples Bridgton Harrison Sebago Oxford Poland Lewiston Auburn
2021
2022
% Change
$425,000 $399,000 $330,000 $344,500 $390,000 $380,000 $240,000 $302,500 $220,850 $243,500
$395,000 $385,000 $362,000 $325,000 $357,910 $365,000 $250,000 $300,000 $264,000 $256,000
-7% -4% 10% -6% -8% -4% 4% -1% 20% 5%
Based on information from Maine Real Estate Information Systems, Inc. (d/b/a Maine Listings) figures pulled on October 20, 2022 for the period of July 1, 2021 through September 30, 2021 and July 1, 2022 through September 30, 2022
Under Contract at ABODE Multiple Offers!
Multiple Offers!
8 Bayview Terrace, Saco Listed at $799,000
37 Blueberry Cove, Yarmouth Listed at $669,000
Multiple Offers!
894 High St, Bath Listed at $615,000
33 Ali Pond Rd, Berwick Listed at $439,900
Recent Sales at ABODE Private Sale
Multiple Offers!
Goose Ledge, Mid-Coast SOLD at $2,300,000
142 Royall Point Rd, Yarmouth SOLD at $1,505,000
Multiple Offers!
19 Birch Ln, Cumberland SOLD at $742,000
110 Spruce Ln Ext, Dover NH SOLD at $715,000