Maine Housing Report, September 2023

With the Sept. 2023 numbers just released from Maine Assoc. of Realtors, the trend of fewer home sales and higher sale prices continues in Maine.  Statewide, 25.4% (!) fewer homes sold in Sept. 2023 compared to Sept. 2022.  The statewide median home value increased 14.2% Sept. 2023 over Sept. 2022 resting at $376,750.  Compare this to the nationwide average of 15.8% fewer home sales in Sept. year over year and a median, national home value increase of 2.5% to $399,200.  While the average home in Maine still costs less (and always has) than the average home of the nation, these numbers show that there is a far tighter housing supply in Maine and more buyer demand across the board than what the country as a whole is experiencing.

Looking at Hancock County, the same statewide/national pattern occurs in our backyards.  In the rolling quarter of July through Sept. 2023 we saw 17.2% fewer Hancock County homes sales than the same rolling quarter in 2022.  The median sales price in the same time period bumped up 15.1% to $425,000.  Interesting to note that Hancock County saw the 2nd highest median home sale price increase in this time period among Maine’s 16 counties, just behind Waldo County’s increase of 16.5%.

We’re likely to see this same pattern continue for the foreseeable future.  While construction supply issues have been greatly resolved, skilled builders are still missing here in the equation to create more homes.  I’m betting that more than anything though, the current 8% interest rates are what is locking up much of the “for sale” home inventory currently.  If you’re a homeowner with a 4% home loan in place (maybe even lower than 4%), and then needing to buy in today’s market, a new home loan at 8% at the current home prices are going to make you think twice about selling right now.  When the interest rates come down, we’ll see more home inventory enter the market.  WHEN the interest rates come down is anyone’s guess!