Maine Housing Market: Trends and Forecast 2024-2025

Thinking about buying or selling a home in Maine? You're probably wondering, “How is the Maine housing market doing currently?” Well, let's look at the latest trends and find out!

Maine Housing Market in 2024

The Maine housing market is currently experiencing steady growth, but it's still a bit of a puzzle. The average Maine home value is $407,143, which is a 4.7% increase from last year. Homes are selling fast, going pending in about 12 days. This tells us that there are plenty of buyers out there! However, even with this strong demand, there are some signs that the market might be cooling down a bit.

Maine Housing Market Trends

Here are a few key trends that are shaping the Maine housing market right now:

1. Rising Home Values:

• Home values have been going up steadily, with a 4.7% increase over the past year. This means that if you own a home in Maine, your investment is likely growing.
• The median sale price in July 2024 was $393,333, while the median list price in August 2024 was $424,967. This indicates that homes are generally selling close to their asking price.

2. Fast-Paced Sales:

• Homes in Maine are selling quickly, with a median time to pending of just 12 days. This means that buyers need to be ready to act fast when they find a home they like.

3. Increasing Inventory:

• While inventory is still relatively low, it has been increasing. In August 2024, there were 5,565 homes for sale in Maine. This is good news for buyers, as it gives them more options to choose from.

4. Competitive Bidding:

• With strong demand and limited inventory, many homes in Maine are receiving multiple offers. In July 2024, 43.6% of sales were above the list price, while 40% were below the list price. This suggests that buyers are often willing to pay a premium to secure their dream home.

5. Regional Variations:

• Real estate is all about location, and Maine is no exception. Home values and market conditions can vary significantly depending on the city or town. For example, the median home value in Sebec is $296,378, while in Dover-Foxcroft, it's $240,380. It's important to research specific areas to understand the local market trends.

What's Driving These Trends?

Several factors are contributing to the current state of the Maine housing market:

1. Low Mortgage Rates:

• Mortgage rates have been historically low in recent years, making it more affordable for people to buy homes. While rates have been rising lately, they're still relatively attractive, supporting continued demand.

2. Strong Economy:

• Maine's economy has been performing well, with low unemployment rates and job growth in several sectors. This economic stability is encouraging people to invest in real estate.

3. Population Growth:

• Maine has seen a modest increase in population in recent years, driven by both domestic migration and an influx of people from other states. This population growth is adding to the demand for housing.

4. Limited New Construction:

• The pace of new home construction in Maine has not kept up with the growing demand, contributing to the limited inventory and rising prices.

Maine Housing Market Forecast 2024-2025

• All four MSAs in Maine show minimal price growth in the short term (September and November 2024).
• However, by August 2025, all four MSAs are projected to experience significant price appreciation.

Augusta, ME is forecasted to have the highest growth at 4.4%, followed by Lewiston, ME at 3.8%. Portland, ME, and Bangor, ME, are projected to see growth rates of 3.3% and 3%, respectively (Zillow).

Predictions for the Future

It's always tough to predict the future of the housing market with certainty. However, based on current trends and expert opinions, here's what we might expect in Maine:

1. Continued Growth, but at a Slower Pace:

• Home values are likely to continue rising, but the rate of appreciation may slow down compared to the recent past.

2. Increased Inventory:

• As more sellers enter the market, inventory is expected to continue to rise, giving buyers more options.

3. More Balanced Market:

• The Maine housing market is expected to gradually shift towards a more balanced market, with neither buyers nor sellers having a significant advantage.

4. Importance of Local Market Knowledge:

• As always, it's crucial to understand the specific market conditions in the area where you're looking to buy or sell. Working with a knowledgeable local real estate agent can be invaluable in navigating the complexities of the market.

It is important to note that forecasts are subject to change and should not be considered definitive predictions.

Maine Housing Market – Key Data Points

Here's a quick overview of some key data points about the Maine housing market as of August 2024:

Metric	Value
Typical Home Values	$407,143
1-Year Value Change	+4.7%
For Sale Inventory	5,565
New Listings	2,084
Median Sale to List Ratio	1.000
Median Sale Price	$393,333
Median List Price	$424,967
Percent of Sales Over List Price	43.6%
Percent of Sales Under List Price	40.0%
Median Days to Pending	12

Maine Real Estate Activity – Recent Past

While data from Zillow indicates a median time to pending of 12 days, information from the Maine Association of REALTORS® paints a slightly different picture. In August 2024, 1,535 single-family existing homes were sold, a 1.66% increase compared to August 2023. The median sales price for August 2024 reached $400,000, marking a 7.53% rise from the previous year.

Regional Variations:

Housing market trends in Maine are not uniform across the state. For example, while Cumberland County experienced a 4.88% increase in home sales during the rolling quarter (June-August 2024), Lincoln and Oxford counties saw declines of 18.06% and 13.57%, respectively. Median sales prices also varied widely, with Cumberland County reaching $592,000 while Aroostook County had a median sales price of $168,500.

Factors Influencing the Market:

Several factors contribute to these trends, including low mortgage rates (although they have been rising), a strong economy, and population growth. Limited new construction has also played a role in the limited inventory and rising prices.

Paul McKee, President of the Maine Association of REALTORS®, acknowledges the challenges posed by the supply-and-demand imbalance in the Maine housing market. He notes that while the number of homes for sale has almost doubled since February 2024, the 3.2-month supply level is still well below the six-month supply that indicates a balanced market.

Experts predict continued growth in the Maine housing market, but at a potentially slower pace. Increased inventory is expected as more sellers enter the market, leading to a more balanced market over time. The sources do not contain information on a possible forecast for 2026.