The average price of a home in Maine was up by almost 7.50% to stand at an historic high last year whilst the state saw sales slide by nearly 20% compared to 2022.

The on-going tight inventory scenario is seen by industry watchers as the primary source which has driven the trend throughout the past 12 months and beforehand.

The median sales price (MSP) statewide in December stood at $360,000, according to the last statistical report from Maine Listings. The MSP indicates half of homes sold for more and half for less.

Six of Maine’s 16 counties saw double-digit increases in the MSP in 2023. Cumberland topped the MSP price table at $531,000 in December. Only Piscataquis county saw a decrease with the MSP there dipping by 0.47% last year to stand at $189,000.

Rising interest rates have also been touted as having an impact in the shrinking number of units sold although rates have stabilized and fallen back in more recent times in keeping with the Feds hold on hiking base rates.

Lack of supply coupled with a still healthy demand lead the contributing factors to the prices up, sales down trend however.

The number of homes for sale has been ticking up modestly but with only 2.7 months of inventory currently available, a “balanced market”, considered by the real estate industry to be 6-months worth of units for sale, appears still someway off.

The prospect of falling interest rates, demand outstripping supply and home sellers commanding multiple offers for their properties suggest the advancing spring market has the potential to be a busy one!

Full press release and county-by-county stats

MaineHousingReport-December23.pdf (mainerealtors.com)