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.