Maine home sales on a 10-month roller-coaster ride
File / Peter Van Allen
November home sales dropped, but prices kept rising amid a lack of inventory.
Single-family home sales and values in Maine have experienced a major surge since the start of the pandemic — even after a dip in the spring.
Comparing each month in 2020 with the same month in 2019, February showed a 5.75% increase in the number of homes sold, while the median sales price increased 8.45%.
But Maine Listings reported Tuesday that 1,965 single-family existing homes changed hands in November, an increase of 31.17% percent compared to November 2019. Values also increased 20% to a median sales price of $270,000, comparing November 2020 to November 2019. The median sales price indicates that half of the homes were sold for more and half sold for less.
Adapting to COVID
In February, Realtors were adapting to concerns around the COVID-19 outbreak. Some buyers were becoming more cautious, although others were taking advantage of lower interest rates. Overall, the industry expected to see a softening of the numbers due to the uncertainties of the health crisis.
By April, sales had indeed waned, by 15.41%. But the median sales price jumped 12.29%. At the time, 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, said that many of the closings that did occur were due to contracts written before the pandemic.
But for-sale inventory was tightening up, buyers were plentiful and multiple offer situations were prevalent, resulting in strong values.
June sales were also down slightly, but the median price continued to rise.
Sales surge
Just a month later, sales of single-family existing homes had begun to recover from the impacts of the early months of COVID-19. Maine Listings reported a sales jump of 12.43% in July 2020 compared to July 2019. Values rose 10.83%.
September saw a 22.78% surge in sales and a 19.56% increase in median price. Maine was seeing an increase of out-of-state buyers, who typically accounted for 25% of home purchases in Maine but by September had increased to around 33%.
The surge continued in October, with sales up 26.88% and value up 24.5%.
November continued the trend.
“Residential real estate activity in Maine is vigorous,” said Cole. “In most markets across Maine, Realtors are reporting multiple offer situations on move-in ready listings. The increased competition for historically low for-sale inventory availability is resulting in price appreciation.”
In real numbers, November’s 31.17% increase translates to 1,965 single-family existing homes sold, compared to November 2019.
“January through November sales are 7.9% ahead of the comparable time period for 2019 — Maine’s best year ever,” said Cole. “One-third of November’s sales involved out-of-state buyers, compared to one-fourth during November of 2019.”
County sales
For the rolling quarter from Sept. 1 through Nov. 30, Washington County saw the biggest rate of increase in number of units sold, at 80.3%.
That was followed by Hancock County at 66.5%, Piscataquis at 59.4%, Aroostook at 54.1%, and Knox at 50%.
National, regional sales
Nationally, sales of single-family existing homes rose 25.6% in November 2020 compared to November 2019.
According to the National Association of Realtors, values also increased 15.1% to a national median sales price of $315,500.
The Northeast witnessed a sales jump of 25.7%, and the regional median sales price of $354,100, representing a 17.4% increase comparing November 2020 to November 2019.
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