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.