Home costs keep rising but sales slide
File photo / Laurie Schreiber
Buyer demand remains healthy in Maine, despite rising prices.
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Buyer demand remains healthy in Maine. But rising interest rates and tight inventory continue to contribute to sliding sales.
The cost for a single-family home rose 7.79% in October, compared with the same timeframe a year ago, according to Maine Listings.
But overall sales dropped off by 23.41% compared to October 2021.
“After a two-year streak of double-digit pricing increases, we’re finally seeing some relief,” said Madeleine Hill, 2022 president of the Maine Association of Realtors and designated broker at Roxanne York Real Estate in Harpswell.
October's median sales price was $332,000, up 7.79% from a year earlier, when it was $308,000. The median sales price was up slightly from $330,000 in September, but off from the peak of $360,000 in June.
The MSP indicates that half of the homes were sold for more and half sold for less.
Hill said demand remains steady for Maine’s tight for-sale inventory. But increased mortgage interest rates have impacted the market.
“Buyers who need to finance their home have less purchasing power, and the recent pricing deceleration indicates that sellers are adjusting,” she said.
Sales volume last month outpaced the number of homes coming onto the market, and for-sale inventory remains tight with 8% fewer homes on the market in October 2022 compared to September 2022.
There were 58% fewer homes for sale than pre-pandemic October 2019.
The National Association of Realtors reported a 28.2% decline in sales nationwide, with a national MSP of $384,900 — a rise of 6.2% in the past year.
Regionally, sales in the Northeast reflected a similar trend, with a decline of 23% compared to October 2021. The regional MSP jumped 8% to $408,700.
“With nearly 1,600 sales, October 2022 was the seventh best October in the 22 years of available records,” said Hill.
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