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Have you ever looked at a work of modern art and asked yourself, “What exactly am I looking at?” Well, that’s kind of the way the economy has been these past few years. So we thought we’d take a few minutes to focus on one critical aspect of our local economy: Maine real estate trends. How are these trends affecting home buyers? How are they affecting sellers? Where are things headed, and what does that mean for you? Let’s dive in.
Surprisingly Good News for Home Sellers
Despite a “doom and gloom” vibe you may get from national media, statistics here in Maine reveal a continuing positive picture for home sellers. According to the Maine Association of Realtors (citing September 2022 statistics, the most recent month for which Maine real estate data are available), home sales remain strong—in fact, historically strong. “Nearly 1,900 homes were sold during September, the third best September in the 20 years since we’ve been keeping records,” said Madeleine Hill, 2022 President of the Maine Association of REALTORS®.
But it gets better. Why? Because the PRICE of the average home sold also rose, to a median of $330,000 for a single-family home—an all-time high.
What About for Home Buyers?
There’s no doubt the picture for home buyers is a bit murkier. Yet, just as every coin has two sides, the buying side of this “coin” offers advantages for those looking for their dream home in Maine. That’s because Maine real estate statistics reveal a slowing of previously exploding prices, to just a 3.13 percent increase in September 2022. This was after 25 straight months of double-digit increases in the price of homes.
All this being true, we can’t overlook the proverbial elephant in the room: interest rates. At its November meeting, the Federal Reserve raised interest rates by three quarters of a point for the fourth time this year. The benchmark rate is now up to 3.75-to-4 percent—the highest since early 2008—and that obviously isn’t a perfect scenario for home buyers. But even here there can be a silver lining: an excellent motivator to buy your dream home NOW, before interest rates jump again. According to experts such as American Banker magazine, interest rates will almost certainly rise from now until at LEAST July 2023. So you’ll likely save thousands of dollars in mortgage-interest payments by buying your home in Maine now.
So What Are We Looking At?
Even though Maine real estate data paints a “mixed picture” heading into 2023, a lot of positive factors remain for everyone hoping to sell or buy a house in Maine. If you want to live in one of the safest, most crime-free states in the U.S. … if you love the outdoors … if you desire a simpler life, where neighbors still care for each other, where life is “The Way Life Should Be” … then Maine is calling your name.
Interested in buying a house—or selling one—in central Maine? We’d love to assist you, and invite you to contact us today.
