2021 MID-YEAR REPORT
STAIRSTEP - that is the word that clearly comes to mind looking at the chart below. For three of the counties in Southern Maine, that trend describes the housing prices so far this year. Up and up and up. Which is a contrast to the rollercoaster of 2021 when sales plummeted during the initial phase of the pandemic only to rebound dramatically. The sales prices in York, Cumberland, and Androscoggin Counties have been marching to a steady pace this year. In January, the median price of a home in York was $360,000, and by June it was $390,000. In Androscoggin County, home of Maine’s L-A (Lewiston-Auburn) the prices went from $206,000 to $240,000. However, Cumberland wins the drama award with the median home price increasing from $373,250 to $450,000. The type of homes in Cumberland County sold did not change much, from a median of 1,772 sqft to 1,887 sqft. They sold in half the time, from 10 days to only 5 days on market. Mortgage payments went up by hundreds, but the money made by sellers went up by $34,000 in Androscoggin, by $30,000 in York, and a whopping $76,000 in Cumberland County. To call this a seller’s market is an understatement. Swmc-Admin. “Home Sales Statistics & Press Releases.” Maine Association of REALTORS. Accessed July 1, 2021. https://www.mainerealtors.com/news/home-sales-statistics-press-releases/.
LACK OF INVENTORY = HIGHER PRICES Multiple news reports feature Maine in the top 10 lists- which likely comes as no surprise to us fortunate enough to live here. A recent article in the Wall Street Journal based on an Emerging Housing Markets Index featured Portland-South Portland in 6th place and Bangor in 9th. Another report by US News and World Report ranked Portland as #8 in the Best Places to Live. Moving companies, not surprisingly, also follow this data and ranked Maine as #9 for Top 10 Retirement Motivated Moves for 2020. The combination of new first time buyers, people in-state moving to larger homes, and national migration patterns have helped drive prices up dramatically in a year. MEDIAN HOME PRICES June 2020 vs June 2021 County:
Change
Percent Change
2020
2021
Cumberland
$337,500
$400,000
18.52%
York
$308,000
$367,100
19.19%
Androscoggin
$185,000
$225,000
21.62%
Sagadahoc
$250,000
$314,000
25.60%
Kennebec
$180,000
$225,000
25.00%
Oxford
$176,000
$225,000
27.84%
Lincoln
$246,500
$336,838
36.65%
Cammenga, Janelle. “Where Are Americans Moving?” Tax Foundation. January 13, 2021. Accessed July 28, 2021. https://taxfoundation.org/state-migration-trends/. “Homebuyers Rush to City in Montana” Nicole Friedman, WSJ 7/21/2021 “The 150 Best Places to Live in America, Ranked.” U.S. News & World Report. Accessed July 20, 2021. https://realestate.usnews.com/places/rankings/best-places-to-live.
Greater Portland Portland South Portland Westbrook Windham Gorham Gray Cape Elizabeth Scarborough Falmouth Cumberland North Yarmouth Yarmouth Freeport
MEDIAN PRICE OF A HOME JUNE 2020 VS JUNE 2021 Southern Maine
June 2020
June 2021
$333,475 $315,000 $279,000 $300,900 $330,000 $282,500 $592,750 $476,500 $555,000 $467,500 $400,000 $554,046 $402,500
$399,000 $369,900 $320,000 $340,000 $350,000 $338,000 $670,000 $542,500 $655,000 $542,500 $469,000 $625,000 $531,500
% Change
19.65% 17.43% 14.70% 12.99% 6.06% 19.65% 13.03% 13.85% 18.02% 16.04% 17.25% 12.81% 32.05%
Midcoast Brunswick Topsham Harpwell Bath Phippsburg Georgetown Wiscasset Boothbay Waldoboro Thomaston Rockland
Saco Biddeford Buxton Standish Kennebunkport Wells York Sanford Waterboro
June 2020
June 2021
$328,800 $278,450 $249,000 $262,500 $569,000 $408,000 $491,000 $199,950 $233,500
$365,000 $340,000 $320,000 $319,500 $900,000 $464,900 $542,500 $239,950 $262,200
% Change
11.01% 22.10% 28.51% 21.71% 58.17% 13.95% 10.49% 20.01% 12.29%
Central Maine June 2020
June 2021
% Change
$303,750 $269,750 $442,500 $205,000 $311,250 $325,000 $216,750 $314,000 $172,000 $220,000 $167,214
$338,500 $294,000 $470,000 $250,000 $420,000 $455,000 $278,000 $392,000 $216,100 $200,000 $216,300
11.44% 8.99% 6.21% 21.95% 34.94% 40.00% 28.26% 24.84% 25.64% -9.09% 29.36%
Augusta Hallowell Gardiner Belgrade Manchester Winthrop Readfield Vassalboro Dresden Whitefield
June 2020
June 2021
% Change
$150,338 $245,625 $154,250 $244,900 $240,000 $200,000 $230,500 $174,750 $228,750 $200,000
$184,500 $255,000 $192,750 $344,500 $289,441 $254,500 $250,000 $254,000 $270,000 $211,900
22.72% 3.82% 24.96% 40.67% 20.60% 27.25% 8.46% 45.35% 18.03% 5.95%
Lakes Region and Lewiston-Auburn Raymond Casco Naples Bridgton Harrison Sebago Oxford Poland Lewiston Auburn
June 2020
June 2021
$319,000 $260,500 $249,900 $222,000 $234,000 $230,000 $187,450 $264,000 $166,600 $170,000
$399,750 $290,000 $282,500 $269,900 $272,000 $275,000 $205,000 $290,000 $192,000 $205,000
% Change
25.31% 11.32% 13.05% 21.58% 16.24% 19.57% 9.36% 9.85% 15.25% 20.59%
Based on information from Maine Real Estate Information Systems, Inc. (d/b/a Maine Listings) figures pulled on July 22, 2021 for the period of January 1, 2021 through June 30, 2021 and January 1, 2020 through June 30, 2020.
BUYERS MARKET vs SELLERS MARKET In order to accurately price a home for a seller and advise a buyer on making an offer, one component we look at is the absorption rate, which measures supply and demand, based on the amount of inventory and pace of sales. SELLER’S MARKET (0-6 month supply) Demand exceeds supply which drives prices up and favors sellers in negotiations BALANCED MARKET (6 month supply) Supply and demand are stable BUYER’S MARKET (6+ month supply) Supply exceeds demand driving prices down and favors buyers in negotiations. Though Maine is largely a seller’s market, there are important distinctions within areas and by price point. For example, let’s look at Biddeford, which has a wide variety of houses from revitalized mills, to densely packed neighborhoods, and also stunning beach homes. For homes under 500k, there is less than one month of inventory. For those priced between 500k and 1 million, there are enough houses on the market to last three months at the current pace of sales. Homes priced over 1 million currently have enough inventory to last until next spring. HOMES UNDER 500K Total Homes for Sale: 11 Total Sold (Past 3 Months): 47 Absorption Rate: 15.67 Months of Supply: .7 Months HOMES OVER 500K - 1 Million Total Homes for Sale: 11 Total Sold (Past 3 Months): 11 Absorption Rate: 3.67 Months of Supply: 3 Months HOMES OVER 1 MILLION Total Homes for Sale: 6 Total Sold (Past 3 Months): 2 Absorption Rate: .67 Months of Supply: 8.96 Months
2021 SELLERS GUIDE If you are considering selling, or just curious about the process in today’s market, please reach out for a complimentary copy, in paper or digital format, of our 2021 Seller’s Guide, which includes information on: • • • • • •
Process of Selling How Much Does Closing Really Cost Marketing Plans in a Digital World Highest Return Improvements ABODE Exclusives And MORE!
2021 SELLER GUIDE
2021 BUYERS GUIDE The process of buying has never been more competitive, and the expertise of an agent has never mattered more. We are happy to share our guide with you, or your friends or family members who are considering buying in the future. This guide, also in paper or digital format explains: • • • • •
The Home Buying Process Coming Soon and Off-Market Properties Submitting a Winning Offer The 10 Rules of Home Loans Home Inspections
2021 BUYER GUIDE
searchmainehouses.com
JANUARY to JUNE
2020
vs
Number of Residential Sales in Maine
8,350
2021 Number of Residential Sales in Maine
10,432
2021 2020
STATEWIDE RESIDENTIAL SALES $2,293,576,430
$3,685,359,070
60.68% INCREASE
Based on information from Maine Real Estate Information Systems, Inc. (d/b/a Maine Listings) figures pulled on July 22, 2021 for the period of January 1, 2021 through June 30, 2021 and January 1, 2020 through June 30, 2020.
2020
2021
vs
Single Family Homes Sold: 7,237
21.07%
Single Family Homes Sold: 8,762
Condominiums Sold: 771
58.36%
Condominiums Sold: 1,221
Land Sold: 324
38.86%
Land Sold: 449
So far in 2021... The most expensive single family home sold in Maine for
The largest parcel of land sold in Maine was
The most expensive Condominium in Maine sold for
on Sebago Lake
acres in Dallas Plantation
on Fore Street in Portland
$8.5 Million
3,910
$3.2 Million
ABODE SALES in 2021: 87 HOMES $34.1 MILLION in VOLUME