State of Maine’s real estate market with rising interest rates
BANGOR, Maine (WABI) - What do rising interest rates mean for Maine’s housing market?
That depends on where you are in that market.
TV5 spoke with real estate agent Emily Ellis who says she thinks the rate hike means some of the crazy over market price deals will come to an end.
However, while there is still demand for Maine homes, the supply is limited.
Ellis says pre-pandemic, she could find a client a starter home for around $125,000.
Today, that house costs closer to $180,000, if not more.
Those high prices can be seen in the rental market, too.
“If you can buy something and you want to own something, you can still do it for about what it costs to rent something now so you can pay your own mortgage and not your landlords,” said Ellis. “The other thing, a different way to think about it is you can find your forever home, but this may not be your forever loan. So, you you can always keep an eye on what the rates do. We don’t really know how this is going to play out.”
She thinks the market will start to see more homes added soon.
With less government help, there will also homes that become available because they have gone into foreclosure.
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