Sales of Maine’s single-family homes eased in May, due to effects from COVID-19 and limited supply; however, value and demand for available homes remained strong. According to Maine Listings, Realtors sold 21.34 percent fewer homes in May 2020, compared to May 2019. Prices continued to rise, with a median sales price increase of 3.43 percent to $237,900. The MSP indicates that half of the homes were sold for more and half sold for less.
We are seeing greater impact on supply and demand in Maine’s real estate markets due to COVID-19. For-sale inventory is extremely tight—28 percent below a year ago; statewide, the days on market statistic for May was 17. Since March, when COVID-19 arrived, days on market statistics are down an average of 30 percent. The brokers at Newcastle Realty are guiding buyers and sellers through this unique market to help them achieve their real estate needs, while following Maine’s CDC guidelines.
The National Association of Realtors reported that sales across the United States eased 24.8 percent and the national MSP increased 2.4 percent to $287,700 comparing May 2020 to May 2019. Regionally, sales in the Northeast fell 29.9 percent compared to last May. The regional MSP rose 7.8 percent to $327,900.
Newcastle Realty has had a strong start to this sales year, despite the pandemic. As of the date of this report, our brokers have closed 55 transaction sides with a total volume of $12,899,300—down slightly from our same Y-T-D numbers in 2019. In comparison, the local Sotheby’s office has booked $8,656,200 from 21 sides, and Drum and Drum Real Estate has sold $4,077,500 with 15 sides. We are pleased to remain the leading real estate firm in our area.
Most of the year-to-date 2020 property sales locally have occurred in Waldoboro (29), Boothbay (22), Wiscasset (32), Jefferson (20), Bristol (25), and Boothbay Harbor (20). Slightly fewer sales have happened so far this year in Dresden (13), Whitefield (17), Damariscotta (13), Newcastle (10), and Edgecomb (15). Towns seeing even fewer sales include Westport Island (9), South Bristol (10), Nobleboro (11), and Alna (8). Just a handful of 2020 sales have occurred in Southport (4), Somerville (6), Bremen (5), and Monhegan Island (1).
There are currently 278 single-family homes for sale in Lincoln County (up from 222 in May), with 35 percent of those priced at or above $500,000. The 594 residential sales that have occurred in the past 365 days represent transactions in the range of under $100,000 (8%), $100,000-$249,999 (44%), $250,000-$499,999 (36%), $500,000-$999,999 (11%), and $1 million-plus (1%). Listing inventory remains low—it is a great time to sell and we are ready to answer your questions about the process.
The current market absorption rates for Lincoln County homes is 1.7 months (under $100,000), 2.5 months ($100,000-$249,999), 6.3 months ($250,000-$499,999), 12.3 months ($500,000-$999,999), and 30.4 months ($1 million and up). This tells us how long it would take for existing inventories to be absorbed into the market at current rates of sales if no new listings were introduced.
Newcastle Realty tracks Lincoln County and statewide sales, along with other important metrics, which keeps our brokers fully informed of current market conditions and emerging trends as they serve buyer and seller client needs. Questions or comments may be directed to Dennis Hilton, President of Newcastle Realty at email@example.com or 207-380-3435.
- Sales statistics based on information from the Maine Real Estate Information System, Inc. (d/b/a Maine Listings) for the period 1/1/2020 through 06/22/2020.