Maine home sales down, median price up in 2022; York County sees tighter market.
The real estate market in York County, Maine, saw a 16 percent decline in home sales in 2022, but the median sales price was still up to $450,000 from the prior year. Teri Woods, president of the York County Council of the Maine Association of Realtors, said she is feeling positive about the year ahead and believes the market will become more balanced. Low inventory is a big factor in the market and is particularly impacting first time homebuyers and those who hope to downsize. Inventory is 56 percent lower than in 2019 and Woods said it is now common to see a home on the market for 35 to 40 days, whereas in the recent past, 7-10 days was the norm.
Maine Association of Realtor President Carmen McPhail said statewide, 2022 ended with more than 16,800 homes sold and a median sales price of $335,000. She noted that the numbers reflect the impact of mortgage rate increases, the typical fourth-quarter seasonal slowdown and a continued shortage of for-sale housing inventory. December saw an 8.9 percent median sale price increase to $330,000 statewide compared to December 2021, but sales statewide declined 36.6 percent.
Interest rates, depending on the borrower’s qualifications, currently hover around 7.5 percent on a conventional 30-year loan. But there are some new products on the market offering 3-, 5- and 7-year adjustable mortgages for a couple of points less. McPhail said agents statewide are seeing a bit of a pause as buyers and sellers adjust their expectations due to today’s financing terms.
Woods said the upward pressure on pricing is waning a bit because of higher interest rates and buyer constraints. She also noted that there is an increased demand for generational housing – in-law apartments or multi-family dwellings – which she said is a trend she is hearing about nationwide. McPhail said she expects would-be buyers to re-engage with the market and the demand for residential real estate to remain high. She believes conditions are favorable for a gradual balancing of the real estate market, which she said is better for everybody, buyers and sellers.
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