Housing
This section of the BDN aims to help readers understand Maine’s housing crisis, the volatile real estate market and the public policy behind them. Read more Housing coverage here.
More homes in Maine are for sale now than there have been at any point since the pandemic.
More than 8,000 homes across Maine were on the market last month, roughly 6,800 of which were single-family homes, according to data from Redfin.
That total is the highest in at least five years, which is as far back as Redfin’s data shows. It marks a more than 8% increase in inventory over last August, according to data from Redfin.
This summer was also the first time Maine’s single-family inventory crept above 6,400 since December 2019, said Judy Oberg, Maine Association of Realtors president and associate broker at Oberg Insurance & Real Estate Agency in Bridgton.
A wave of new homes hitting the market presents more opportunities for hopeful buyers to find a house at a lower price. While high inventory doesn’t solve other factors crippling Maine’s housing market, it does create a more favorable environment for buyers after years of tight conditions for those looking to buy.
Summer has historically been when Maine’s real estate market is most active, as families try to finalize deals and move before school starts. It’s typical to see one last push of activity in September and October, Oberg said.
“Generally, people look all summer and then in the fall the people who are ready make decisions and put in things under contract,” Oberg said.
Rising inventory can also have a snowball effect, Oberg said. That’s because more homes entering the market present new options for families who may have been searching for a new home that better fits their needs, which will lead them to sell their property.
While asking prices statewide have remained high, the coming cold weather puts pressure on those looking to sell and move before the snow arrives, Oberg said. This often leads sellers to lower their asking prices to draw more interest and gives buyers leverage to negotiate better prices or agreement terms.
“Every day I see 30 price reductions in my area alone because people want to have their homes sold because they want to buy something else and move,” Oberg said.
Despite the improving environment for buyers, external factors such as high interest rates, the inflated cost of living, and rising price of gas and oil due to the ongoing Iran war might deter some from entering the real estate market, Oberg said.
“I’ve been in real estate for 29 years and we seem to be getting back to normal, but we’re still being affected by things happening outside of our control,” Oberg said.
This is especially true for those who bought with a low interest rate, as was common during the pandemic, and are reluctant to trade it in for a higher rate, even if they want to move.
While this rise in inventory and late-in-the-season activity is unusual compared with the previous six years, Oberg said the real estate market is returning to how it operated before the pandemic.
This is likely welcome news for those who put off buying a home during and immediately after the pandemic. That time saw Maine’s housing inventory plummet and properties that were available sold within days, usually for above asking.
“Things have changed to being a buyer’s market, which is normal and isn’t anything,” Oberg said. “It seems we’re just returning to pre-COVID.”