Maine home sales decline 21%, but prices climb
Photo / Laurie Schreiber
Single-family homes declined 21.3% in May, but the median sales price increased 3.4%.
Sales of Maine’s single-family homes dropped off sharply in May, with Realtors citing the impact of COVID-19 and the ongoing tight inventory. However, value and demand for available homes remained strong.
Realtors sold 21.3% fewer homes last month compared to May 2019, according to Maine Listings.
The median sales price increased 3.43%, from $230,000 to $237,900.
"We’re seeing greater impact on supply and demand in Maine’s real estate markets due to COVID-19,” said Tom Cole, 2020 president of the Maine Association of Realtors and managing broker of Better Homes and Gardens Real Estate The Masiello Group in Brunswick.
“For-sale inventory is extremely tight — 28% below a year ago,” he said.
“We’re experiencing more demand than supply,” Cole said. “Buyers are plentiful and multiple offers are prevalent for move-in ready homes, creating upward pressure on values in Maine’s more highly populated regions."
Realtors and potential buyers were largely relegated to virtual tours, at least during the shutdown, following the Maine CDC guidelines.
County stats
Through the three months ended May 31, Hancock County saw the biggest decline in number of units sold, a drop of 23%, compared to a year ago. That was followed by York County, with a 19.8% decline, and Androscoggin County, with an 18% decline.
On the plus side, Oxford, Aroostook, Sagadahoc and Washington counties posted single-digit gains.
In the same quarterly comparison, the biggest price winner was Franklin County, which was up 40.8%. That was followed by Piscataquis, up 21.1%, and Lincoln County, up 18%.
Only Aroostook and Washington counties saw their prices go down.
National stats
Maine mirrored national trends. The National Association of Realtors reported that sales across the United States eased 24.8% and the national median sales price increased 2.4% to $287,700, comparing May 2020 to May 2019.
Regionally, sales in the Northeast fell 29.9% compared to last May. The regional median sales price rose 7.8% to $327,900.
“With Maine’s economy opening up and historically low mortgage interest rates, we expect a steady recovery if the supply of for-sale inventory expands,” Cole said. “Real estate sales, and related services, account for more than 18% of Maine's gross domestic product and should be one of the drivers for helping Maine's economy recover.”
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