Available homes for sale in Maine dropped by 25 percent in the first half of 2023 compared to last year, according to the latest Maine Association of Realtors report. But that trend might be changing as demand remains high.
The Association reports that 43 percent more homes were sold in May of this year compared to 2022. That's a promising sign, said President Carmen McPhail, because it means both buyers and sellers are adjusting to market demands.
McPhail said the slowdown in the first half of the year was due to ongoing high interest rates, which put off buyers. At the same time, sellers needed to make sure they had a place to live before listing because houses are spending less time on the market.
Those adjustments could indicate a slow return to a more balanced market, but McPhail said there are still too few homes available to meet demand. Buyers may also have to adjust to current interest rates for the time being.
"I don't think [rates] are going back to three anytime in the near future," she said.
The report shows the median price of a home in Maine increased by over 5 percent this quarter compared to last year, an increase of $340,000 to $358,250.
