Home sales drop in Maine as prices rise

BANGOR, Maine (WMTW) - Fewer homes changed hands in Maine in 2022 compared to 2021, but the homes that did sell brought more money.

According to the Maine Association of REALTORS, existing homes sales in Maine dropped nearly 17.5%, but the median sales price rose 12% to $335,000. In total, about 16,800 homes were sold in Maine in 2022, with prices peaking in June.

The market in Maine was impacted by rising mortgage interest rates and the fact that fewer homes were put up for sale. There is also a normal seasonal dip in the market at the end of the year.

“We’re seeing a bit of a pause as buyers and sellers are adjusting their expectations due to today’s less-favorable financing terms compared to mid-2022,” Carmen McPhail, 2023 president of the Maine Association of REALTORS, said. “As we move through 2023, we expect would-be buyers to re-engage with the market and the demand for residential real estate to remain high. Conditions are favorable for a gradual balancing of the real estate market.”

The highest median sales price in Maine continues to be in Cumberland County, where it was $491,723 in 2022. York County was second at $450,000. However, Washington County had the biggest percentage increase in median sales price from 2021 to 2022. Prices there grew to $215,000, a 31.5 % increase.

The lowest median sales price in Maine in 2022 was in Aroostook County with $148,000.