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May 24, 2021

Maine home sales continue to soar as industry looks for stabilization

FILE PHOTO / LAURIE SCHREIBER April 2021 home sales continued to rise, as did prices.
By Staff

Single-family home sales and prices continue to soar in Maine compared to this time last year, but the situation may stabilize in the coming months, brokers predict, as lack of inventory becomes even more of an obstacle.

There was a 35.68% increase in Maine home sales over those in April 2020, with 1,445 units sold last month statewide. Median sales price continued to climb, reaching $276,000 — a $7,500 increase over March's price, and 17.05% higher than last April's $235,000, according to the Maine Listing Service.

“Maine’s residential real estate market continues to be fast-paced,” Aaron Bolster, president of the Maine Association of Realtors said Friday. "The April 2021 statistics released today reflect a comparison to one year ago, when the state of Maine was in COVID-shutdown status. Last month’s sales volume was strong — 13% above the pre-pandemic April 2019 figures."

“As homes come onto the market, buyers are waiting and ready,” said Bolster, who is broker-owner of Allied Realty in Skowhegan. He said that days on the market in April was eight, compared to 25 days in April 2020 and 46 days in April 2019.

But he also predicted things might stabilize soon. “We expect that improving COVID metrics and back-to-the-office vs. telework decisions may help stabilize the market urgency and upward pricing pressures that we’re experiencing," Bolster said.

Brokers across the state say stabilization of the high prices and lack of inventory is needed.

While the sales activity and buyers willing to pay above asking can have positives, there are also negatives, Dan McCarron, designated broker with Lakepoint Real Estate, told Mainebiz last week.

"It's getting to the point now where it's pricing a lot of people out," he said, speaking of the market in central Maine's Belgrade Lakes region. "A lot of new money's coming to town, and it's great for the town, but not great for Mainers who can't afford to buy."

Tom Landry, of Benchmark Real Estate in Portland, said that agents anticipated higher prices to lead to more listings, but that hasn’t happened. It's a Catch-22, where those who may list to get a nice price for their home know they'd end up in the same position as other buyers — competing in the a tough market.

“While they can do well on the sale, they’re afraid they won’t find something to buy and/or have to pay just as much, if not more, for that next home," he said.

Nationally, sales in April were up 28.9% over last year, and the national median sales price rose 20.3%, to $347,400, according to the National Association of Realtors. In the Northeast,  volume was up 30.4% while the median sales price rose 22%, to $381,100.

Monthly and quarterly home-sale data, by county

Courtesy / Maine Association of Realtors
Numbers from the Maine Real Estate Information System Inc. (Maine Listings), show statewide comparisons between April 2021 and April 2020, as well as rolling quarter county comparisons. Maine Listings is a subsidiary of the Maine Association of Realtors, with more than 5,600 licensees inputting active and sold property listing data.

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