February 2021 Real Estate Market Update
The demand for Maine’s real estate is stronger than ever with for-sale inventory at a historical low. Data shared by Maine Listings indicate the median sales price (MSP) for a single-family existing home in Maine rose 15.57 percent to $255,300 and sales volume jumped 18.38 percent comparing January 2021 to January 2020. The MSP indicates that half of the homes were sold for more and half sold for less.
Residential real estate in 2021 has certainly sustained the positive trajectory witnessed in 2020, with sales volume and median sold values significantly out-pacing those of a year ago, which statistically was the best year ever for Maine real estate. With the current market in high demand, buyers are being left with minimal options to choose from and sellers are hesitant to list their homes without securing their next move-in ready property. With the buyer demand strong, continuing positive momentum for 2021 is highly dependent on homes for sale entering the market.
The National Association of Realtors reported a 23 percent rise in sales of single-family existing homes across the country comparing January 2021 to January 2020. Home prices jumped 14.8 percent over January 2020, reaching a national MSP of $308,300 in January 2021. Regionally, sales in the Northeast increased 24.3 percent and the regional MSP was up 15.8 percent to $361,400 comparing January 2021 to January 2020.
Our company is off to a strong start in 2021. As of the date of this report, our brokers have closed 26 transaction sides with a total volume of $3,546,050—up 57% over our Y-T-D numbers in 2020. In comparison, the local Sotheby’s office has booked $4,082,100 from seven sides, and Drum and Drum Real Estate has sold $1,947,947 with six sides. We are pleased to remain a leading real estate firm in our area.
Most of the year-to-date 2021 property sales locally have occurred in Waldoboro (13), Boothbay (14), Wiscasset (8), Bristol (12), Dresden (8), Damariscotta (7), Jefferson (6), Edgecomb (7), and Bremen (6). Slightly fewer sales have happened so far this year in Newcastle (5), Boothbay Harbor (6), Whitefield (2), Westport Island (4), South Bristol (4), Nobleboro (3), and Southport (3). No sales have occurred yet in Alna, Somerville, and Monhegan Island.
There are currently just 90 single-family homes for sale in Lincoln County (down from 128 in January), with 42 percent of those priced at or above $500,000. The 773 residential sales that have occurred in the last 365 days represent transactions in the range of under $100,000 (6%), $100,000-$249,999 (30%), $250,000-$499,999 (45%), $500,000-$999,999 (15%), and $1 million-plus (3%). Listing inventory remains super low—it is a great time to sell and our brokers are ready to answer your questions about the process.
The current market absorption rates for Lincoln County homes are 0.5 months (under $100,000), 0.8 months ($100,000-$249,999), 1.2 months ($250,000-$499,999), 2.5 months ($500,000-$999,999), and 6.3 months ($1 million and up). This tells us how long it would take for existing inventories to be absorbed into the market at current rates of sales if no new listings were introduced.
Newcastle Realty tracks Lincoln County and statewide sales, along with other important metrics, which keeps our brokers fully informed of current market conditions and emerging trends as they serve buyer and seller client needs. Questions or comments may be directed to Dennis Hilton, President of Newcastle Realty at email@example.com or 207-380-3435.
- Sales statistics based on information from the Maine Real Estate Information System, Inc. (d/b/a Maine Listings) for the period 1/1/2021 through 2/23/2021.