Mainers are the largest buyer base for Maine real estate, but the pandemic has altered the playing field.
An influx of out-of-state buyers are in the game now, according to a new report from Legacy Properties Sotheby’s International Realty’s founder and president, Chris Lynch.
“The pandemic, remote work and community safety are the three most often cited influences that have broadened and deepened the out-of-state buyer base,” said Lynch.
In 2019, Maine residents bought 74% of all homes available for sale. Massachusetts buyers closed on 8%.
But in 2021, Maine residents purchased a significantly fewer number of homes, dropping to 65% of total units. Massachusetts accounted for a slight increase of 10% of statewide unit sales.
The differences become more exaggerated when considering dollar volume sales. In 2021, Maine buyers represented 56% of all dollars spent on Maine homes sold at all prices.
The shift becomes dramatic as the sales price rises, with Mainers accounting for only 28% of luxury home buyers.
Feeder markets
The top feeder markets for Maine have stayed the same for several years and consist of Massachusetts, New Hampshire, Florida, New York, California, Connecticut, Pennsylvania, New Jersey, Texas and the metro Washington, D.C., area, which includes the Maryland and Virginia suburbs.
However, the pandemic affected the geographic mix of Maine’s real estate buyer base, resulting in dramatic participation changes, said Lynch.
“On a dollar volume basis, California’s participation has soared by 58% when comparing the two periods, while Connecticut, metro Washington, D.C., and Florida have also increased their participation by more than 20%,” he said. “This has all occurred during a period in which Maine’s dollar volume participation has declined by 13%.”
Lynch said he expected to see buyer trends continue into the spring market.
“Despite the current market being very challenging for buyers, the opportunity to sell a home for a record price has never been more widely available throughout the state,” he said.