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May 20, 2022

April home price surged 25% and demand remains hot

Courtesy / Pro Realty, Trulia A three-bedroom, one-bathroom home on 2.28 acres in Frankfort, Waldo County, is on the market for $349,000, which is just over Maine's median home price.
By Jessica Hall

The price for a single-family home in Maine surged about 25% in April from a year ago, as demand remained strong and the few homes on the market sold quickly.

The surge in pricing put the statewide median sales price at $346,000, up from $276,000 a year ago.

For the three-month period ending April 30, all 16 Maine counties saw a drop in the number of units sold but an increase in median sales price.

Cumberland County had the highest median sales price, at $491,947, up from $410,000 a year ago.

The median sales price indicates that half of the homes were sold for more and half sold for less.

“Maine’s quality of life and the emergence of teleworking has resulted in unprecedented demand for Maine real estate for the past two years,” said Madeleine Hill, president of the Maine Association of Realtors and designated Broker at Roxanne York Real Estate in Harpswell. “The supply and demand for single-family housing is out of balance.”

The Maine Association of Realtors said 1,143 homes changed hands in April 2022, a decrease of 20.9% from April of last year. April marked the tenth consecutive month of year-over-year sales declines, and seven of those months also showed a decline in for-sale inventory.

“Despite the constrained for-sale inventory, Maine’s real estate markets continue to be strong due to sustained demand,” Hill said.

The number of homes sold from January through April of this year was 4.5% higher than January through April 2019 which, prior to the pandemic, was Maine’s top year for real estate sales.

Maine’s trend mirrored the national housing market. According to the National Association of Realtors, sales across the country eased by 4.8% in April 2022 compared to a year-ago, and the national median sales price rose 14.8%, to $397,600. Regionally, comparing April 2022 to April 2021, sales in the Northeast dipped 10.7% while the regional MSP increased 8.1% to $412,100.

“During March and April of 2022, we experienced a slight uptick in for-sale listings. An increasing supply will continue to address the pent-up demand and may relieve some of the upward pricing pressures,” says Hill.

Portland market 

In Portland, there were price increases for single family homes, while condos and multi-unit buildings saw decreases in price, sales, and listings, according to an analysis by Benchmark Real Estate.

In the single-family home sector, there was continued growth and price appreciation for Portland single families. April showed a median sales price of $500,000, up from $404,500 a year ago. Sales volume grew by 41% from a year earlier.

“There has been a clear shift with more listings coming on,” said Benchmark Real Estate owner Tom Landry.

Tom Landry
Courtesy / Benchmark Real Estate
Tom Landry

Landry said he expects more listings in May and June as well. He attributes this to three things, the dwindling of the pandemic, continued record-setting sales, and underlying anxiety that a peak is looming.

“Sellers see the sales numbers their neighbors are getting and are worried that inflation and geopolitical tensions could drive those numbers down later this year,” Landry said.

Days on market have remained low for the better part of the past year, indicating that demand continues to outpace supply.

“There’s lots of evidence that if someone is thinking of selling, right now might be the ideal time. We could be reaching a peak,” Landry said.

“We expect May and June to see more record shattering prices for single families, existing condos to sell quickly given limited options, and smaller multis to sell for higher prices per/unit,” Landry said.

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