Availability of properties for sale continues to be an issue for buyers of single-family existing homes across Maine. According to Maine Listings, Realtors sold 708 homes last month—a dip of 19.4 percent from February 2022. Prices increased 10.7 percent in the past year, with data indicating a median sales price (MSP) of $329,250. The MSP indicates that half of the homes were sold for more and half sold for less.
The shortage of move-in ready homes for sale continues to be the challenge for buyers in today’s market. Homeowners who purchased in recent years with record-low mortgage interest rates are staying put and, like the rest of the country, new home construction in Maine has not kept pace with demand.
Nationally, home sales declined 21.4 percent in February 2023 compared to February 2022. The National Association of Realtors reported that the national MSP eased nationwide 0.7 percent to $367,500. Sales in the Northeast decreased 25.7 percent and the regional MSP declined 4.5 percent to $366,100 comparing February 2023 to February 2022. In some areas of Maine, sellers are responding to the higher mortgage interest rate environment, which has impacted affordability. We’re beginning to see a softening of prices, a welcome sign for buyers coming into spring.
Don’t wait to place your home, camp or land parcel on the market; qualified buyers are searching now. Reach out to our professional broker staff today by calling 207-563-1003. They can quickly tell you what your property is worth!
We are pleased to remain a leading real estate firm in Lincoln County as we serve buyers and sellers. As of the date of this report, our brokers have closed 20 transaction sides with a total volume of $7,291,500—down 22% from our Y-T-D numbers in 2022—and we are excited to report that approximately one-quarter of our sales volume has come through our new Boothbay Harbor branch office. In comparison and of this date, Drum and Drum Real Estate has sold $1,909,500 with three sides, and the local Sotheby’s office has sold $3,234,250 with five sides.
It is early yet, but most of the 2023 year-to-date property sales locally have occurred in Wiscasset (12), Waldoboro (13), Jefferson (6), Boothbay Harbor (7), Whitefield (7), and Boothbay (7). Slightly fewer sales have happened so far in Newcastle (5), Dresden (5), Edgecomb (6), Alna (3), Damariscotta (7), and Nobleboro (5). Towns seeing just a few or no sales include South Bristol (1), Southport (1), Westport Island (0), and Southport (3).
There are currently just 46 single-family homes for sale in Lincoln County (down from 49 in February), with 54 percent of those priced at or above $500,000. The 555 residential sales that have occurred in the last 365 days represent transactions in the range of under $100,000 (3%), $100,000-$249,999 (20%), $250,000-$499,999 (46%), $500,000-$999,999 (24%), and $1 million-plus (7%). Listing inventory remains low—it is a great time to sell and our brokers are ready to answer your questions about the process.
The current market absorption rates for Lincoln County homes are 0.5 months (under $100,000), 1.9 months ($100,000-$249,999), 2.1 months ($250,000-$499,999), 2.6 months ($500,000-$999,999), and 6.7 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 client needs. Questions or comments may be directed to Dennis Hilton, President of Newcastle Realty at firstname.lastname@example.org or 207-380-3435.
- Statistics are from the Maine Real Estate Information System, Inc. (d/b/a Maine Listings) for the period 1/01/2023 through 03/21/2023.