Portland area home prices expected to increase faster than any in the US next year
File Photo / Peter Van Allen
Portland-area homes are expected to continue soaring in price during 2022. In Yarmouth, this home was on the market over the summer for $429,000.
The run-up in Portland home prices will continue during 2022 and outdistance price increases of any other large metro area in the U.S., a new industry forecast says.
The analysis released Wednesday by Realtor.com predicts the median sale price in Portland-South Portland will spike 10% over the 2021 level, the greatest increase for any of the country’s largest 100 metros. The real estate website forecasts a 2.9% increase in the median price nationwide.
Other New England cities will also see big jumps, according to the site. Homes in the Providence, R.I., area will go up in price by 9.5%, the second-highest increase nationally. In Worcester, Mass., the forecast is for an 8.2% increase, and metro Boston should see a 7.5% bump in the median sale price.
The median sales price is the level at which half of the homes sell for more and half sell for less. Realtor.com did not provide more specific predictions for individual markets. The forecast is based on a proprietary model using a variety of housing data and national economic indicators.
Realtor.com also predicts that the number of home sales in the U.S. will soar 6.6% during 2022, reaching a 16-year high. In the Portland area, however, sales volume is expected to tick down from 2021 by 0.2%.
That decrease, and Portland's predicted price surge, are both in line with recent statewide trends.
In October, the number of existing single-family home sales decreased 11% across Maine, compared to October 2020, from 2,341 to 2,085. Meanwhile, the median sales price increased 10% year-over-year, from $280,000 to $308,000. This was the fourth consecutive month in which high demand and lower-than-normal inventory sent volume and pricing in different directions.
"Whether the pandemic delayed plans or created new opportunities to make a move, Americans are poised for a whirlwind year of home buying in 2022. With more sellers expected to enter the market as buyer competition remains fierce, we anticipate strong home sales growth at a more sustainable pace than in 2021," said Realtor.com Chief Economist Danielle Hale in a news release.
"Affordability will increasingly be a challenge as interest rates and prices rise, but remote work may expand search areas and enable younger buyers to find their first homes sooner than they might have otherwise.”
Most Recent
Most Recent
0 Comments