It is no secret that the housing market has seen a boom the last two years. Lori Miles, a secondary hedge trading associate at Bangor Savings Bank, has seen a large increase in business. “Last year was a record setting year. We were very busy.” Housing prices in Maine have steadily increased through 2021. It has left many wondering if now is a good time to buy.
According to the Maine Real Estate Information Systems (MREIS), the median sale price for a home is up 14.2 percent from 2020. The primary factors for this increase in price are low inventory and high demand. New listings for the state are down 25.7 percent. With not many options, buyers are willing to spend more to purchase a home now. The median amount of time a listing is on the market is a mere 12 days.
This year has also seen an influx of out-of-state buyers keeping housing prices high. Many have abandoned the city to find refuge somewhere rural due to Maine’s quiet nature and low crime rates, combined with COVID fears. Real estate agent for Next Home Experience, Jacob Kipping, said that his clients from Florida to Colorado have been, “Running away to Maine looking for peace and quiet.” Now that people have more options to work from home, it gives them the chance to move where they want.
Low inventory for homes will likely continue as winter approaches. People tend to hold off listing their houses in the colder months. While it is a great time to sell, lack of options and high housing costs have kept people from putting their homes on the market. Even if sellers get more than their asking price, they may end up spending more to purchase another home. Housing prices may go down slightly, but probably not significantly.