October 2021 Market Update

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Demand for single-family existing homes across Maine continues to surpass pre-COVID numbers. According to Maine Listings, while sales decreased 9.74 percent in September, prices jumped 16.92 percent. The median sales price (MSP) for the 2,067 homes sold last month reached $320,000. The MSP indicates that half of the homes were sold for more and half sold for less.

The demand for Maine real estate remains strong. With buyers rapidly purchasing for-sale inventory as it comes on the market, we’re now experiencing a 2.1-month supply of for-sale inventory compared to a six-month supply, which is considered a balanced market. Sales volume for September 2021 is 9.7 percent below September of last year but is 10.7 percent above September 2019.

Nationally, sales of single-family homes across the country dropped 3.1 percent over the past year. The National Association of Realtors reports a national MSP of $359,700 which shows an increase of 13.8 percent. Sales occurring in the regional Northeast decreased 8.3 percent with the regional MSP of $387,200 reflecting a 9.2 percent increase.

Our company continues to excel and remains the leading real estate firm in the Damariscotta area. As of the date of this report, our brokers have closed 163 transaction sides with a total volume of $45,848,125 —down 8% over our Y-T-D numbers in 2020. In comparison, Drum and Drum Real Estate has sold $15,879,670 with 40 sides, and Sotheby’s has sold $37,999,600 with 68 sides.

Most of the year-to-date 2021 property sales locally have occurred in Waldoboro (96), Boothbay (100), Wiscasset (78), Bristol (87), and Jefferson (70). Slightly fewer sales have happened so far in Damariscotta (47), Dresden (38), Whitefield (38), Newcastle (43), and Boothbay Harbor (51). Towns seeing even fewer sales include Nobleboro (33), Edgecomb (35), Bremen (26), Westport Island (28), South Bristol (33), and Southport (26). Just a handful of 2021 sales have occurred in Alna (9), Somerville (8), and Monhegan Island (1).

There are currently 181 single-family homes for sale in Lincoln County (down from 196 in August), with 37 percent of those priced at or above $500,000. The 773 residential sales that have occurred in the last 365 days represent transactions in the range of under $100,000 (5%), $100,000-$249,999 (25%), $250,000-$499,999 (46%), $500,000-$999,999 (19%), and $1 million-plus (6%). Listing inventory remains super 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 3.7 months (under $100,000), 2.2 months ($100,000-$249,999), 2.3 months ($250,000-$499,999), 4.1 months ($500,000-$999,999), and 5.1 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 dennishilton@cheneycompanies.com or 207-380-3435.