Hikes in interest rates are contributing to a cooling off in the real estate market in Maine.
An increase in days on market coupled with a raft of price adjustments are further evidence of a softening trend. That said industry watchers still highlight a lack of inventory as a significant factor in a 15% drop in sales of existing single family homes last month when compared to July 2021.
Prices, however, continued to move in the opposite direction year-on-year, with the average, or median sales price (MSP), up 12% on July 2021 to stand at $354,000, although that number represents a slight decrease from June’s median of $360,825,
The MSP indicates half of homes sold for more and half for less, and the figures are contained with the publishing of Maine Listings latest monthly report.
The regional and national real estate trends are the same: Fewer sales but for more money.
Lawrence Yun, chief economist for the National Association of Realtors, expects sales to stabilize as interest rates start to creep down, giving buyers a little more purchasing power.
He said: “We’re witnessing a housing recession in terms of declining home sales and home building.
“However, it’s not a recession in home prices. Inventory remains tight and prices continue to rise nationally.”