Real estate sales in Maine continued to increase in August, marked by a low supply and mortgage rates plus an uptick in out-of-state buyers, according to data released Tuesday by the Maine Association of Realtors.The value of existing single-family homes sold in Maine rose more than 17 percent compared to August 2019 to a median sales price of $270,000. The median sales price indicates that half of the homes sold for more and half for less.
The number of homes sold increased 1.31 percent over last August. Positive sales in the third quarter have brought sales about even to that same quarter in 2019, according to Tom Cole, president of the real estate group.
A historically low supply of homes for sale, down about 40 percent since last year, is driving up prices during the coronavirus pandemic. Cole said Mainers are also moving within the state along with those coming to the state.
Some 707 homes were sold to out-of-state buyers in August compared to 482 last August.
Franklin County saw the highest median price hike in Maine, up more than 29 percent to $194,250 in June, July and August of this year compared to the same months last year. Somerset County saw the highest amount of units sold, up some 32 percent to 234 units.
Cumberland County sales were down more than 10 percent to 1,243 units but up more than 11 percent in price to $375,000 over the three months of comparison. Penobscot County saw a 1.17 percent rise in units sold to 606 and an 11.25 percent rise in median sales price to $178,000.
Nationally, existing-home sales and prices each rose about 11 percent, Cole said. Sales in the Northeast were up 5.7 percent.
Further sales gains are likely for the remainder of the year amid low mortgage rates and with continued job recovery, Lawrence Yun, chief economist for the National Association of Realtors, said.
The current rate for a 30-year fixed mortgage in Maine is 3.25 percent, according to SmartAsset.com. The median price for an existing home nationally was $310,600, up 11.4 percent from August 2019.
Yun said lumber prices have risen dramatically over recent months, partially linked to shortages caused by the California wildfires. That in turn has led to higher prices for housing. Foreclosures and short sales were low, representing 1 percent of the home sales nationwide.
Yun predicts that more housing will need to be built as people will continue to work from home, even after a coronavirus vaccine becomes available.
This story appears through a media sharing agreement with Bangor Daily News.