Photo / Zillow.com
Updated: August 1, 2022
What does $350K-ish buy you in Maine?
By Jessica Hall
Maine’s median home price surged to $346,000 early this year, jumping from $276,000 a year ago. Unfortunately, with prices rising and inventory tight, your money doesn’t go as far as it used to.
With an influx of out-of-state buyers and limited supply, Maine’s median sales price for single-family homes has surged in the past year to levels unthought of before the pandemic.
The median sales price surged to $346,000 in the spring, jumping from $276,000 a year ago. That compares to a national MSP of $397,600 and a regional price of $412,100. The MSP indicates that half of the homes were sold for more and half sold for less.
Even with higher interest rates putting a damper on the market, the median price surged to $360,825 in June.
“It’s not necessarily having an inventory crisis. The problem is supply and demand and supply has not been met as builders are building fewer homes,” says Madeleine Hill, president of the Maine Association of Realtors and designated broker at Roxanne York Real Estate in Harpswell. “Maine in the past year has also seen population growth for the first time in a while.”
“It’s all happening at the same time,” she says, citing people moving to Maine during COVID. “If you’re working from home, why not do it from Maine?”
The percentage of out-of-state buyers out of total transactions jumped from 29% in 2020 to 34% in 2021.
Hill doesn’t expect a drastic and immediate change in the market in the wake of interest rate hikes, a spike in inflation and unsettled global geopolitical events like the war in Ukraine, but all those factors will affect the industry.
“All of that will affect buyer desperation. Discretionary buyers will go away,” Hill says. “Sellers may not want to miss the peak of the market. It might motivate them to list a little earlier than they wanted.”
“Buyers’ ability to buy has been significantly impacted by what rates are doing. Interest rates of 5 to 6% are game changes. It dramatically changes what a buyer can afford compared with 3 to 4%,” Hill said.
While these issues affect the entire state, Portland, South Portland and the rest of southern Maine tend to be faster in following national trends.
So given that the industry may change, here’s a snapshot of what $350,000-ish buys in Maine. These particular listings will likely be snatched up before long, but serve as an example of the types of homes available around the MSP.
96 Mountain Road, Lot 0007, York
In York, the best you can do for the MSP is a 1.06-acre wooded lot. Houses there were listed as high as $4.9 million. This lot, listed at $329,900, was described as a “gorgeous rural lot, just minutes from town and York beaches.”
11 Dilios Drive, Brunswick
Photo / Zillow.com
This three-bedroom, two-bath home built in 2005 has 1,288 square feet. It boasts a large living room and kitchen/dining area. The primary bedroom offers attached bathroom. Two other bedrooms have a shared second bath. It has a private backyard and deck facing the woods. The garage can handle up to three cars or offer space for hobbies. The home, listed at $350,000, is minutes to downtown Brunswick and 30 minutes to Portland.
62 Boston Ave., Lewiston
Photo / Zillow.com
The 1,997-square-foot Cape has an in-law apartment that could also be used as a home office. The three-bedroom, three-bath home has “wonderful floors and fine workmanship to every detail,” according to the listing. The home has a wood stove and a gas fireplace. It has a two-car heated garage with storage. It’s close to schools, stores and the turnpike. It listed at $350,000.
77 Beech St., Rockland
Photo / Zillow.com
This three-bedroom bungalow in Rockland features two bathrooms, first floor laundry, two stairways, a large fireplace and a sun porch. The kitchen features stainless steel appliances and slate farmer’s sink. The 1920s home has 1,926 square feet, and a corner lot with pull-thru drive and frontage on three streets. The house listed at $349,000.
385 Water St., Ellsworth
Photo / Zillow.com
This four-bedroom, two-bath home is located in downtown Ellsworth. The Victorian home has a double lot and has an enormous backyard, overlooking the city’s gazebo and waterfront. The listing indicates that an additional dwelling could be built on the land. The house is also an easy walk to the town’s library, grocery store and all of downtown. It’s also 30 minutes drive to Acadia National Park. The house listed at $329,000, below the state’s MSP.
20 Judd St., Presque Isle
Photo / Zillow.com
This Presque Isle Cape has five bedrooms and 2.5 baths, as well as an oversized garage with 2.5 spaces. The house, built in 1951, has 2,463 square feet, including an addition. The house has a wood-burning fireplace and sits on 0.4 acres. The house listed at $329,900, slightly below the state’s MSP.
Source: Sales prices are from Zillow.com. This is representative and prices are subject to change.
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