2023 Annual Report

THE MAINE HOUSING MARKET REMAINS COMPETITIVE

Residential real estate was a hot topic in 2023! Despite the surge in mortgage rates, home prices continued to rise across Maine. This caused many potential home buyers to slow their searches compared to previous years as their budgets had to be adjusted due to increased interest rates aimed at curbing inflation. At the peak, the national average 30-year mortgage rate hit a 23-year high with rates nearing 8%, and the median home price in Maine peaked in June at $385,000. Fortunately, interest rates moderated in the fourth quarter.

Amidst intense competition in the housing market, persistent demand outpaced limited supply. Would-be buyers with the stomach to stay in the market gobbled up the limited inventory in the hottest markets. Some potential buyers paused their home searches, grappling with affordability challenges posed by elevated home prices and high interest rates. Homes priced at market value attracted swift sales, some with multiple offers, whereas those homes initially overpriced lingered on the market, often requiring price reductions to secure offers. Ultimately, a single-family home in Maine sold at a hair over 100% of the final list price.

At Portside, we are pleased and grateful that despite a declining year in real estate with the Maine market down 11% in volume, Portside’s volume actually increased over 2022. Our dedicated team of full-time, best-in-class agents not only surpassed the market but also marked our 11th year in business with our highest-ever sales volume!

As Portside agents, we are proud to have made a positive impact on our community through our 1% Back to Maine initiative. We were able to give back over $200,000 to Mainers in need through our 1% grants, our event series, pop-by gifts, and other sponsorships to support local nonprofits. Notably, we allocated $60,000 to the Lewiston Auburn Recovery Fund in the aftermath of the tragic mass shooting.

2024 will be another strong year for real estate prices as supply will struggle to keep up with the demand of locals and out-of-state buyers. We are anticipating a slight uptick in transactions as buyers adjust their lifestyles to the current mortgage rates, and life changes cause homeowners to list their homes.

At Portside, our gratitude extends to the numerous opportunities that unfolded in the past year. With anticipation and enthusiasm, we eagerly embrace the future, ready to continue making a positive impact on our community and navigate the evolving real estate landscape in 2024.

Kaili Moore Associate Broker kaili@portsidereg.com 207.252.4161

MAINE MARKET UPDATE

The median home price in Maine reached a record-breaking high! Still rising but not at the double digit rate of the last 3 years.

The number of single family homes sold in 2023 was 21% less than 2022.

Days On Market

The market still moved swiftly, taking just 10 days to sell a home with a list to sale price ratio of 100.4—most sellers getting full asking price or more!

MEDIAN HOME PRICES

OVER THE LAST FIVE YEARS

The median price of a home skyrocketed by 60% in the last 5 years. That is a lot of equity for Mainers! With a substantial portion of homeowners benefiting from interest rates below 4%, there is a prevailing trend of homeowners opting to stay put, thus contributing to the retention of tight inventory levels and sustaining elevated home prices.

HOTTEST AREA

Price were on the rise in all regions with Androscoggin and Oxford leading the pack at 14.7%.

$319,000

Androscoggin, Oxford

Franklin, Piscataquis, Somerset, Aroostook

$275,000

Hancock, Penobscot, Washington

$343,000

Kennebec, Knox, Lincoln, Waldo

$500,000

Cumberland, York, Sagadahoc

SLOWEST PRICE GROWTH

The most expensive area Cumberland, York and Sagadahoc had the slowest overall growth.

We are seeing a trend of first time home buyers moving from this area to find more affordable homes north and west.

7. 2 BILLION

Total volume condo and single-family homes sold.

16 THOUSAND

Units of single-family homes and condo sales.

MARKET UPDATE

Increase in median price.

In 2023, home prices demonstrated sustained growth, albeit at a slower pace compared to the preceding years. The number of units sold declined from the previous year, marking the lowest annual units sold in a decade; the last time sales were at this level was in 2014. Despite the decrease in the number of transactions, the record-high home prices contributed to a robust residential market, generating a total sold volume of $7.2 billion for the year.

THE MEDIAN HOME PRICE IN SOUTHERN MAINE IS $500,000

PORTLAND

151 Colonial Road

Lot size: 0.16 Acres

Home Size: 928 sq feet

Beds: 2 Baths: 1

List Price: $395,000

Sold Price: $500,000

7.3 PERCENT SOLD

WHAT DID THAT GET YOU IN 2023?

SOUTH BERWICK

15 Park Street

Lot size: 0.31 Acres

Home Size: 1,437 sq feet

Beds: 3 Baths: 1

List Price: $439,000

Sold Price: $505,000

BRUNSWICK

17 Middle Bay Road

Lot size: 1.2 Acres

Home Size: 2,232 sq feet

Beds: 2 Baths: 3

List Price: $399,000

Sold Price: $502,000

ECONOMIC OUTLOOK

STATE OF THE HOUSING LANDSCAPE

RYAN FECTEAU

Senior Officer of Policy & Planning

Avesta Housing

2024 is going to be a landmark year for housing in Maine. I have no way of knowing how many housing units will be permitted for construction or certified for occupancy. But I know 2024 is going to be a landmark year, because of L.D. 2003, a new law that changes the housing landscape.

I championed L.D. 2003 in 2022 as Speaker of the Maine House of Representatives. The law has five primary effects. First, it prohibits exclusive single-family zoning by allowing up to two-units on any vacant residential lot and up to four-units on any vacant residential lot in so-called growth areas. Secondly, it allows for up to two additional units on any residential lot with existing single-family home. Thirdly, it requires minimum lot sizes for units between two and four not incrementally exceed what applies to the first unit. In other words, if a town requires one acre for the first unit, they must require no more than two acres for the second. Fourthly, the law allows accessory dwelling units (ADUs) by right on any lot with an existing single-family home. Finally, it creates a density bonus for any development designating at least 50 percent of the units as affordable.

Most larger communities were required to comply with the new law by January 01, 2024 and other towns will need to comply by July 01, 2024. As towns work towards compliance, I have observed robust and unprecedented community dialogue about housing and how to positively impact its production. In fact, some communities are going beyond the law’s basic requirements, such as Portland which now allows up to four units and up to two ADUs on any mainland residential lot.

Housing is one of the most pressing issues facing Maine. We need bold change to create more housing opportunities for Maine families. L.D. 2003 is bold. And the work undertaken by Maine’s cities and towns is the landmark change we need at this pivotal moment.

KATIE SHOREY

Director of engagement

Live and Work In Maine

2023 RELOCATION TRENDS

The Live and Work in Maine (LWM) website saw an increase in visitors this year (22%)—with 56% of users being from out-of-state and 44% of users located in Maine. The majority of the website users, as well as the job board users, are ages 25-44. The top two topics of interest by website users are employment and real estate. Anecdotally, we have seen a younger wave of people move to Maine (which is in line with the Maine State Economist's findings) and the majority of attendees at our Welcome Home community events are new-toMaine residents (within the last 2-3 years). LWM's marketing campaigns, out of home advertising, opt-in newsletters, and social media outreach are driving individuals to the website and job board, which continues to be the best way to recruit talent and share resources with Mainers and future Mainers. LIV

7.3K job applications submitted

1.6M overall jobs views

4.1K job seekers added

USERS

MAIN

2024 ECONOMIC OUTLOOK

AMANDA RECTOR

Maine State economist

Department Of Administrative + Financial Services

The U.S. and Maine economies ended 2023 on a solid footing and are starting 2024 with an expectation of declining inflation and interest rates paired with a slower pace of employment growth that avoids recession. However, global geopolitical upheaval remains a risk to the forecast.

For Maine, one of the big questions is whether migration into the state will continue. The pandemic created conditions that resulted in a large influx of people moving to Maine. In 2021, Maine had the fifth highest net migration rate in the country and netted nearly 19,000 new residents through migration. In 2023, migration patterns around the U.S. returned to more normal prepandemic patterns, but Maine still had the ninth highest net migration rate and was 21st for population growth rate in 2023 (0.5%) and 14th cumulatively since 2020 (2.4%).

Maine set a record high for total nonfarm employment in October 2023, reaching just over 650,000, but growth is expected to slow with the tight labor market as a limiting factor. Maine’s labor force has declined in recent years due in large part to retirements among people age 55 and older. Maine has a large share of Baby Boomers (born 1946-1964) in its population and as this generation ages and retires from the labor force, more and more new workers are needed to maintain the labor force. Migration into the state is a key factor in labor force growth, but housing availability and affordability is a constraint on migration.

Affordability may be helped by declining inflation and interest rates. Inflation peaked in the summer of 2022, coinciding with a peak in crude oil prices, and has eased since then. Inflation is expected to continue slowing through 2024; the Federal Open Market Committee projected Personal Consumption Expenditure (PCE) inflation to fall from 2.8% in 2023 to 2.4% in 2024 at their December 2023 meeting. At that same meeting, interest rates were held steady at 5.25-5.5%, with projections showing two to three 25 basis point cuts in 2024. This will help ease debt service burdens on consumers and continue steering the economy towards the elusive “soft landing.”

PORTSIDE'S 2024 FORECAST

INTEREST RATES

Expect continued moderation, facilitating more transactions compared to 2023.

AFFORDABLE HOUSING

Recognizing the national issue, new zoning laws in Maine aim to address this concern, but the tangible benefits may not be fully realized until beyond 2024.

HOME PRICES

Anticipate a 3-5% increase in home prices.

INVENTORY

Expect the continued low inventory to maintain high prices, but a more balanced market is on the horizon.

OUT-OF-STATE AND SECOND HOME DEMAND

Foresee this segment contributing to 30% of the market.

SEASONALITY

The real estate market is predicted to experience a robust spring, gaining momentum after a potentially slower first quarter.

GROWTH AREAS

The northern and western regions of southern coastal Maine will continue to grow, potentially leading to affordability challenges for buyers.

OVERALL TRANSACTION INCREASE

Foresee more transactions as interest rates settle in, and life changes prompt people to move. The anticipation is not for a dramatic shift but rather a better year in 2024 compared to 2023.

YEAR IN REVIEW

THE PORTSIDE FOUNDATION

We believe that if we care about our neighbors, the difference we make collectively will be sustainable and life changing for our fellow Mainers.

The Portside Foundation 501(c)(3) is dedicated to improving the health and well-being of Maine’s communities by supporting humanitarian, environmental and health-andyouth assistance programs. The Foundation organizes and hosts multiple fundraising events and awareness campaigns on behalf of local nonprofits throughout the year. These thoughtful events generate income through corporate sponsorships, ticket sales, auctions and direct donations. The proceeds from these events are used to support local nonprofits working to improve the lives of those in our communities.

Since the Foundation’s inception, we have raised enough capital to donate over $820,000 through our Portside Gives Back events, 1% for Back to Maine and donation drives for cancer causes, affordable housing, youth wellness and wildlife conservation programs in Maine.

PORTSIDE FOUNDATION IN 2023

» Autumn Equinox at Maine Audubon

Raising over $22,000 for Maine Audubon + their DEI initiatives

» Hops for Habitat at Home

PopBy gifts benefiting Habitat for Humanity of Greater Portland, York County and Seven Rivers

» Spring for a Cure

PopBy gifts benefiting Maine Cancer Foundation

» Pride Parade

» 1% Back to Maine Panel

» Coffee’s On Us

Portsiders paying it forward in Maine + New Hampshire

» Blood Drive

» Yarmouth Clam Festival

» Maine Marathon

»

»

1% Back to Maine focuses on supporting the next generation of Mainers, Maine’s youth, helping to give them the greatest chance at creating a more wonderful world. Selling homes in the community affords us the privilege of giving back to the communities that we live and work in.

On a quarterly basis the Portside Foundation and participating Portside agents give 1% of top line revenue to local nonprofits supporting systemic Maine problems.

SYSTEMIC ISSUES IN MAINE

2023 $220,000 RAISED 15 GRANTS FUNDED

57 grants funded since 2021

$545,000 raised since 2021

MEDICAL + MENTAL HEALTHCARE

EDUCATION

FOOD INSECURITY

GENERATIONAL POVERTY + AFFORDABLE HOUSING

OUR CONTRIBUTIONS AT WORK

Lewiston-Auburn Area Response Fund

Taking swift action, our 1% Back to Maine Committee held an emergency meeting to address how we can assist. Partnering with the Maine Community Foundation, we allocated off-cycle grants ($62,000) to provide immediate resources to aid in the rebuilding and healing process for those affected by this tragedy:

$50,000

Lewiston-Auburn Area Response Fund Broader Recovery Effort

$12,000

National Association of Mental Health—Maine (NAMI - Maine)

Through every sale, the hard work and generosity of our Portside agents has enabled these emergency funds to provide relief to those in distress.

2023 GRANT BENEFICIARIES

CUMBERLAND COUNTY

Greater Portland Family Promise I $10,000

This grant will be used to help prevent family homelessness through GPFP’s financial assistance programs and housing stabilization programs that work with local landlords.

Rippleeffect | $10,000

This grant will focus on developing student social emotional skills and promote positive mental health.

Our Place I $10,000

This grant will provide advocacy services such as systems navigation, assistance with basic needs provision, and postsecondary education and employment support, for 25 families in East Bayside.

Tedford Housing I $7,500

This grant will serve individuals and families experiencing literal homelessness and living in conditions unfit for human habitation, as well as those households at extreme risk of losing their housing. Our primary service area is Cumberland, Sagadahoc, and Lincoln counties

NAMI Maine I $ 12,000

This grant will help develop a stronger mental health system that provides care, support and service that Mainers require.

YORK COUNTY

ecology School I $10,000

Granting will help The Ecology School enable globally— immersive programs where campers and residents can live, laugh, and study in a unique ecosystem, as well as community events designed to amplify the efforts of like-minded partners working in ecology, sustainability, and food access.

Youth Full I $7,500

These funds will help YFM manages school food pantries currently in three school districts and two pre-schools, for a total of 20 schools in 10 different towns and soon to add three HeadStart preschools.

White Pines I $11,000

This grant will help with programming to inspire the next generation of environmentalists through experiential, accessible, nature-bound programs that help build personal growth, empathy and community.

Lewiston Auburn Area Response Fund I $ 50,000

This grant was created by MCF to address current emerging needs associated with this tragedy on 10/25/23. With MCF as the conduit, 100% or the funds will be allocated to the people impacted and the organizations that will help guide L/A through the process of healing.

Yellow Tulip Project I $10,000

The grant will help an initiative aimed at showcasing stories of young men and non-binary folks who are impacted by mental health struggles. This youth-driven movement is ready to move mountains to bring change and to remind folks that there is help and hope out there.

kennedy Park Football Club I $10,000

Funds from this grant will help engage new and returning players in skill development and community building opportunities. As well as help the players plan for their future and navigate education and financial aid.

Big Brothers/Big Sisters of Southern Maine I $7,000

This grant will continue to create one to one mentor relationships between students/youth and student/adults

LINCOLN COUNTY

STATEWIDE

Mid Coast Hunger Prevention Program | $10,000

Grant Mission: This grant helps fund programs throughout mid coast Maine ensuring there’s an easy way for everyone in the community to access food close to home.

Hearty Roots | $4,500

Grant Mission: The grant funding will help to improve mental wellness by shifting kids away from indoors, screen bound activities toward nimble sustainable outdoor programming on Maine’s Preserves.

Count Me In | $6,000

Grant Mission: Funding for this grant helps to expand programming to provide direct support to students who are experiencing severe, chronic absenteeism.

PAST BENEFICIARIES

PORTSIDE'S 2023 YEAR IN REVIEW

$870 MILLION IN SALES

#1 IN UNITS SOLD PER AGENT of the top 10 Maine brokerages

#1 INDIE BROKERAGE

$200,000+ GIVEN BACK TO OUR COMMUNITIES

1500+ UNITS SOLD

INV e STM e NT PROP e RTY L e AD e RS

#2 IN MAINE for multi-family sales volume

CONDO e XP e RTS

#2 IN MAINE for condo sales volume

#1 in CUMB e RLAND COUNTY #1 in PORTLAND

#2 OVERALL BROKERAGE for volume out of 570 brokerages

#1 LIST PRICE TO SOLD PRICE of the top 10 Maine brokerages

MIDCOAST GROWTH

#1 IN SAGADAHOC COUNTY and fastest growing with 62% growth

#3 IN MAINE for luxury sales of properties over $1M

#2 IN MAINE for buyer represented sales

OUR REACH

» 59 Pleasant Street, Brunswick

» 765 US Route One, Yarmouth

» 417 US Route One, Falmouth

» 59 Baxter Boulevard, Portland

» 4 Scott Dyer Road, Cape Elizabeth

» 149 Port Road, Kennebunk

» 155 Fleet Street, Portsmouth

out-of-state buyers MADE UP 30% OF TOTAL SALES

OUT OF STATE BUYERS

Portside Real Estate Group agents use their extensive area knowledge and market-specific experience, backed by Global reach, through our connection with Leading Real estate Companies of the World. Our offices are strategically located along the Maine Coast, providing convenience for our customers and critical exposure to buyers. If your search brings you outside of Maine, Portside’s affiliation with Luxury Portfolio International provides you with global access to properties near and far, whether you’re searching for your primary residence, second home or investment property.