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.