Maine Housing Report, August 2021

Numbers released by the Maine Assoc. of Realtors this week for August 2021 may indicate that the market surge inspired by the COVID pandemic over the past 1.5+/- years is reaching a crest. The number of homes sold in Maine during August 2021 was down 4.8% compared to August 2020. However, values still continue to rise, with a 14.8% jump in the median home price in Maine when comparing Aug. 2021 vs. Aug. 2020. The Aug. 2021 median home price in Maine now rests at $310,000. On the homefront in Hancock County, for the current rolling quarter we saw the number of home sales actually jump up 7.7% vs. the same quarter in 2020. Hard to believe with how crazy last Summer was, but true. And values in Hancock County also remain on the rise, up 26.3% for the rolling quarter with a median home value of $310,000 (yes, coincidentally matching the state’s median home value). What we’re seeing on the front lines is a slight tampering of both buyer urgency and the number of buyers out there shopping. Don’t get us wrong, there is still an impressive demand for homes in the Acadia region right now (with sales numbers to back that up), it just does not seem that demand is as crushing as it was not long ago. Part of this is due to demand being met over the past 1.5 years with many folks buying the Maine home they were looking for. The slight dip we’re seeing in buyer demand is also due to buyers getting discouraged with the limited inventory and heavy competition, and deciding to step to the sidelines for now. This is largely a reaction we are seeing from local buyer clients. Will home value gains slow in concert with what we’re seeing in buyer demand slowing? Most likely, but probably not for a few months and only if buyer demand does actually slow, and continues to do so for an extended time.