2023 MID-YEAR REPORT
The spring market, like the sunny summer days of June, simply did not show up in 2023, as you can see in the graphic below, as the number of residential sales in Maine dropped by an astounding 1,861 homes. Buyers were ready to buy–but there were simply not enough homes for sale. Nationally the month of May saw the lowest housing inventory in a decade with only 1.4 million homes for sale across the country. Add to the mix a demographic surge of first time home buyers coupled with the highest level of cash purchases since 2014, largely from baby boomers, and you can start to see why demand is far outstripping supply.
Even new construction has dropped this year, with the number of units on pace to match 2019, but fall far short of 2022. Land costs, site costs, labor, and profit margins have resulted in currently only one new single family home for sale south of Sebago Lake for less than 400k.
Some sellers are holding tight- clinging to the low interest rates available in the pandemic as 80% of current homeowners have an interest rate under 5%. Others, seeing this as a moment to build wealth, are selling and taking their money and re-deploying it into other investments and moving to emerging markets in Maine.
But there are many markets moving at different speeds and directions within the state. We are happy to consult with you on your specific market and the best strategy whether as a buyer, seller, or investor.
Based on information from Maine Real Estate Information Systems, Inc. (d/b/a Maine Listings) figures pulled on July 11, 2023 for the period of January 1, 2023 through June 30, 2023 and January 1, 2022 through June 30, 2022.
Median Sales Prices January to June 2023 vs 2022
Sales Prices Are Slowing
While the number of sales during the first half of the year dropped significantly, the prices ticked up a bit, and in York and Cumberland counties, by only single digit increases. During the past three years, when the Maine real estate market went into overdrive, the number of sales often declined at the same percent as the prices increased. In other words, sales would be down 20% and the prices would be up 20% year-over-year. What we have seen the first half of 2023 is a decoupling of those numbers.
Some economists believe this is masking the decline in demand due to high interest rates. If there were more supply, the prices would have likely declined, which is what has happened in some other parts of the country. Overheated markets like Austin Texas have cooled quickly and there are price declines and inventory to choose from. However, supply remains extremely limited in many places. Nationally, fewer than 2% of homes changed hands in the first six months of 2023, the lowest number in a decade.
Based on information from Maine Real Estate Information Systems, Inc. (d/b/a Maine Listings) figures pulled on July 11, 2022 for the period of June 1, 2022 through June 30, 2022 and June 1, 2023 through June 30, 2023.
Median Price of a Home
Lakes Region and Lewiston-Auburn
January to June 2023 vs 2022
Based on information from Maine Real Estate Information Systems, Inc. (d/b/a Maine Listings) figures pulled on July 11, 2023 for the period of June 1, 2022 through June 30, 2022 and June 1, 2023 through June 30, 2023. Greater Portland Southern Maine 2022 2023 % Change 2022 2023 % Change Portland $475,500 $525,000 10% Saco $476,500 $620,000 30% South Portland $460,000 $476,000 3% Biddeford $385,000 $455,000 18% Westbrook $425,000 $425,000 0% Buxton $383,500 $392,000 2% Windham $431,075 $455,000 6% Standish $399,000 $462,500 16% Gorham $467,500 $562,500 20% Kennebunk $625,000 $670,000 7% Gray $463,000 $394,000 -15% Kennebunkport $1,097,250 $1,084,500 -1% Cape Elizabeth $805,000 $761,100 -5% Wells $547,250 $628,000 15% Scarborough $652,000 $700,000 7% York $690,000 $831,950 21% Falmouth $851,000 $920,000 8% Sanford $292,000 $340,000 16% Cumberland $610,000 $850,000 39% Waterboro $337,900 $362,000 7% North Yarmouth $525,000 $630,000 20% Yarmouth $795,500 $900,000 13% Freeport $710,000 $682,500 -4% Midcoast Central Maine 2022 2023 % Change 2022 2023 % Change Brunswick $457,000 $472,500 3% Augusta $249,500 $260,000 4% Topsham $437,550 $425,000 -3% Hallowell $296,500 $425,000 43% Harpswell $585,000 $682,500 17% Gardiner $250,000 $292,500 17% Bath $370,000 $317,500 -14% Belgrade $382,500 $461,000 21% Phippsburg $590,000 $532,500 -10% Manchester $375,000 $319,000 -15% Georgetown $455,000 $510,000 12% Winthrop $250,000 $303,000 21% Wiscasset $375,000 $385,000 3% Readfield $285,000 $372,500 31% Boothbay $479,500 $435,000 -9% Vassalboro $287,500 $301,000 5% Waldoboro $350,000 $331,760 -5% Dresden $540,000 $562,500 4% Thomaston $300,000 $420,000 40% Whitefield $325,000 $316,000 -3% Rockland $339,000 $365,000 8%
2022 2023 % Change Raymond $400,000 $510,000 28% Casco $380,000 $385,000 1% Naples $390,000 $360,000 -8% Bridgton $338,933 $390,000 15% Harrison $315,000 $350,000 11% Sebago $387,500 $390,000 1% Oxford $282,500 $344,950 22% Poland $365,000 $370,700 2% Lewiston $262,100 $283,250 8% Auburn $246,000 $282,000 15%
Portland by the Numbers
U.S. News and World Report ranked Portland as #7 of the 150 Best Places to Live. It was the only place in New England among the top 20, and among its attributes was Portland’s “do it yourself” spirit, “farm-to-table dining,” and artful living. In other reports Portland ranked as the 4th safest place to live in the United States and 24th in fastest-growing places to live. Travel and Leisure Magazine ranked Portland as #1 in the 10 Best Places to Live on the East Coast. No wonder people want to move here.
Portland’s popularity shows up in the real estate numbers as well. And when looked at closely, it represents some of the larger issues facing other cities and towns in Maine. In the first six months of 2023 there were 238 new residential listings in Portland, compared to 448 in 2022 - a 47% drop! That number is a combination of single family homes and condominiums. When those two are looked at separately, the number of single homes listed for sale dropped from 272 in 2022 to 130, a 52% drop, while the number of condos listed declined by 39%.
Simply put, the numbers differ as there are multiple condo projects under construction. And most have units with one or two bedrooms more suitable to those downsizing, seeking second homes, or people without children. Of the 149 single family homes sold in Portland so far in 2023, only 4 were new construction and they sold for a median price of $721,500.
Across all of Cumberland County the median price of a new single family home for sale right now is quite similar at $772,500 and there are only 52 new homes for sale. There is simply no inventory being created close to the median Cumberland County sales price of $475,000.
Talking Inventory
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Buyer, Seller, and Landlord Guides Updated for the 2023 Market
2022 vs 2023
2022 2023
of Residential Sales
Based on information from Maine Real Estate Information Systems, Inc. (d/b/a Maine Listings) figures pulled on July 6, 2023 for the period of January 1, 2023 through June 30, 2023 and January 1, 2022 through June 30, 2022. Show Me the Numbers January to June
7,026 8,887
STATEWIDE RESIDENTIAL SALES $3,546,299,096 -16% DECREASE
$2,984,464,441 Number
in Maine Number of Residential Sales in Maine
So far in 2023...
Single Family Homes Sold: 7,482 Single Family Homes Sold: 5,756 Condominiums Sold: 903 Condominiums Sold: 764 Land Sold: 2,367 Land Sold: 1,684 -23% -15% -28%
2022 vs 2023
most expensive single family home sold in Maine for $19.5 Million in Mount Desert
largest parcel of land sold in Maine was 5,354 Acres in Carroll Plantation
most expensive condo in Maine sold for $3.4 Million in Portland
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