2023 Spring Update
MARBLE RUN - that is what the chart below calls to mind. You can almost hear the sound it makes as it drops from level to level, with a much louder “kerplunk” in the number of sales in York County from 2022 to 2023, and a gentler tumble in the number of sales in Sagadahoc. Androscoggin County, home to Maine’s LA, had an uptick in sales in 2022 compared to 2021, but still saw a dramatic drop in 2023.
For those of us working in real estate, February was an extra crazy month. In Cumberland County, the number of new listings dropped from 296 to 218 February over February. It was not unusual for homes priced in the $300-500k range to receive 10 or more offers. One house in Brunswick straight out of 1976 - shag carpet, yellow appliances, and all, received over 40 offers and sold for more than $100k over its list price.
As redundant as it sounds, the low inventory compared to demand, is driving the market in Maine to ever higher prices. One of the most significant factors is the limited new construction and the types of construction. Pay attention as you drive around, and you will soon see that new construction is primarily focused on three types: rental apartment buildings, apartmentstyle condo buildings (often for those 55 years and over), and highend homes over $600k.
Based on information from Maine Real Estate Information Systems, Inc. (d/b/a Maine Listings) figures pulled on April 7, 2023 for the period of January 1, 2021 through March 31, 2023.
Pricing at a Local Level
If the declining number of sales sounds like a falling marble, then the increase in prices sounds more like a ratchet, slowing down from its rapid 2021-paced cranking. Compared to first quarter 2022, Q1 2023 saw prices rise more than the typical 4% long term real estate growth trend line. Yet, this increase was less than the 20% growth we were used to seeing in 2020 and 2021.
However, pricing is very local, by town and by neighborhood. Some of the numbers on the chart on the opposite page are rather wild – prices went up in the town of Cumberland by 95%! This came about as several high-end new homes sold in the first quarter. Kennebunkport saw the number of sales stay nearly level, but the median prices fell 49%. Homes sold in Kennebunkport in 2022 included waterfront estates that sold at $5.9 and $6.9 million and seven others that sold over $1 million. This year sales dropped to a more reasonable median price of $770k.
Real estate is said to be all about “location, location, location” and that seems especially true here in Maine where proximity to the water, commuting time to downtown Portland, and which side of Route 1 you live on can make all the difference in the world.
Based on information from Maine Real Estate Information Systems, Inc. (d/b/a Maine Listings) figures pulled on April 7, 2021 for the period of January 1, 2023 through March 31, 2023.
Median Home Prices Q1 2022 vs 2023
1st Quarter 2022 vs 1st Quarter 2023
Greater Portland Southern Maine 2022 2023 % Change 2022 2023 % Change Portland $455,000 $505,000 11% Saco $376,000 $497,500 32% South Portland $435,000 $431,750 -1% Biddeford $378,000 $420,000 11% Westbrook $385,000 $377,500 -2% Buxton $310,000 $349,900 13% Windham $415,000 $437,450 5% Standish $341,000 $432,000 27% Gorham $446,250 $535,000 20% Kennebunk $579,000 $527,500 -9% Gray $405,000 $363,500 -10% Kennebunkport $1,500,000 $770,000 -49% Cape Elizabeth $695,456 $560,000 -19% Wells $451,250 $415,000 -8% Scarborough $610,000 $615,000 1% York $570,000 $774,450 36% Falmouth $682,946 $789,600 16% Sanford $414,500 $660,000 59% Cumberland $509,574 $995,000 95% Waterboro $332,500 $350,000 5% North Yarmouth $437,000 $630,250 44% Yarmouth $645,500 $1,000,000 55% Freeport $525,000 $600,700 14% Midcoast Central Maine 2022 2023 % Change 2022 2023 % Change Brunswick $315,000 $405,750 29% Augusta $209,500 $233,750 12% Topsham $425,000 $355,000 -16% Hallowell $275,500 $487,500 77% Harpswell $495,500 $416,000 -16% Gardiner $205,000 $218,950 7% Bath $357,500 $301,250 -16% Belgrade $310,000 $383,000 24% Phippsburg $497,500 $565,000 14% Manchester $332,500 $260,000 -22% Georgetown $485,000 $1,650,000 240% Winthrop $250,000 $245,000 -2% Wiscasset $330,000 $375,000 14% Readfield $280,000 $274,500 -2% Boothbay $495,000 $700,000 41% Vassalboro $170,250 $226,000 33% Waldoboro $226,000 $250,000 11% Dresden $344,200 $196,000 -43% Thomaston $251,000 $390,000 55% Whitefield $352,500 $317,500 -10% Rockland $299,000 $324,000 8% Lakes Region and Lewiston-Auburn 2022 2023 % Change Raymond $400,000 $510,000 28% Casco $370,000 $338,000 -9% Naples $300,000 $355,000 18% Bridgton $311,400 $345,000 11% Harrison $278,350 $270,000 -3% Sebago $383,950 $390,000 2% Oxford $220,000 $167,500 -24% Poland $310,000 $281,250 -9% Lewiston $308,500 $259,000 -16% Auburn $225,000 $285,000 27% Based on information from Maine Real Estate Information Systems, Inc. (d/b/a Maine Listings) figures pulled on April 7, 2023 for the period of January 1, 2022 through March 31, 2023.
