July 2022 Market Update

Fri, 07/22/2022 - 1:00pm

According to Maine Listings, sales of single-family homes in Maine saw a decline of 9.83 percent, presumably in response to rising interest rates. Compared to June 2021, the statewide median sales price (MSP) jumped 16.4 percent in June 2022 reaching $360,825. The MSP indicates that half of the homes were sold for more and half sold for less.

REALTORS® across the state share similar experiences of market delays, with homes staying on the market for longer periods of time. We are seeing a downshift in buyer competition of for-sale inventory as mortgage rates continue to rise. The for-sale inventory of single-family properties in Maine remains historically low with 1.8 months of available supply, where a balanced market usually consists of a six-month supply.

Nationally, sales dipped 12.8 percent comparing June 2022 to June of last year. Statistics shared by the National Association of Realtors report a national MSP of $423,300 for June, an increase of 13.3 percent. Regionally, the Northeast saw a decrease in sales of 11.8 percent with the regional MSP increasing 10.1 percent, reaching $453,300.

Our company continues to excel with a full staff of exceptional local agents. We are excited to remain a leading real estate firm in the Damariscotta area as we serve buyers and sellers. As of the date of this report, our brokers have closed 84 transaction sides with a total volume of $32,587,349 —up 26% over our Y-T-D numbers in 2021—and we are pleased to report that one-third of our sales volume has come through our new Boothbay Harbor branch office. In comparison, Drum and Drum Real Estate has sold $7,124,025 with 22 sides, and Sotheby’s has sold $34,092,500 with 44 sides.

Most of the year-to-date 2022 property sales locally have occurred in Waldoboro (55), Jefferson (40), Boothbay Harbor (36), Wiscasset (36), Damariscotta (27), Boothbay (36), and Bristol (40). Slightly fewer sales have happened so far in Dresden (19), Edgecomb (21), Newcastle (17), Nobleboro (18), Westport Island (18), Whitefield (23), and Southport (15). Towns seeing even fewer sales include South Bristol (10), Bremen (6), Alna (6), Somerville (3), and Monhegan Island (1).

There are currently 139 single-family homes for sale in Lincoln County (up from 120 in June), with 40 percent of those priced at or above $500,000. The 685 residential sales that have occurred in the last 365 days represent transactions in the range of under $100,000 (3%), $100,000-$249,999 (23%), $250,000-$499,999 (47%), $500,000-$999,999 (20%), and $1 million-plus (7%). 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 1.8 months (under $100,000), 1.5 months ($100,000-$249,999), 2.3 months ($250,000-$499,999), 3.3 months ($500,000-$999,999), and 4.8 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 dennishilton@cheneycompanies.com or 207-380-3435.