March 2022 Market Update
Persistent buyer demand for Maine real estate combined with low for-sale inventory continues to fuel a competitive market, driving sale prices higher. According to Maine Listings, February 2022 sales declined 17.33 percent compared to February 2021, while the median sales price (MSP) increased 21.48 percent, reaching $297,500. The MSP indicates that half of the homes were sold for more and half sold for less.
The demand for homes in Maine remains strong but the number of transactions being conducted are constrained due to diminished supply of real estate inventory. Two years into the pandemic, for-sale homes continue to receive multiple purchase offers and are under contract within days.
Comparing February 2022 to February 2021, the National Association of Realtors indicated a 2.2 percent dip in nationwide sales with the national MSP reaching $363,800, a 15.5 percent increase. Regional sales of single-family homes in the Northeast declined 12.7 percent while the regional MSP rose 7.1 percent to $383,700. February 2022 experienced the third highest number of single-family home sales in the past 24 years of Maine real estate.
Our company continues to excel with a full staff of exceptional local agents. We are excited to remain the 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 24 transaction sides with a total volume of $8,576,500 —up 21% over our Y-T-D numbers in 2021. In comparison, Drum and Drum Real Estate has sold $4,143,500 with 10 sides, and Sotheby’s has sold $8,055,000 with 11 sides.
Most of the year-to-date 2022 property sales locally have occurred in Jefferson (19), Boothbay Harbor (14), Wiscasset (13), Waldoboro (14), Boothbay (10), and Bristol (10). Slightly fewer sales have happened so far in Dresden (6), Edgecomb (5), Damariscotta (9), Newcastle (8), Nobleboro (5), Westport Island (8), and Southport (8). Towns seeing even fewer sales include South Bristol (2), Whitefield (4), Bremen (2), Alna (4), Somerville (1), and Monhegan Island (0).
There are currently 59 single-family homes for sale in Lincoln County (down from 64 in February), with 39 percent of those priced at or above $500,000. The 711 residential sales that have occurred in the last 365 days represent transactions in the range of under $100,000 (4%), $100,000-$249,999 (24%), $250,000-$499,999 (46%), $500,000-$999,999 (19%), 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 1.7 months (under $100,000), 0.6 months ($100,000-$249,999), 0.9 months ($250,000-$499,999), 1.5 months ($500,000-$999,999), and 1.5 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.