Maine Real Estate Market Update: May 2023

What does the Maine real estate market look like as we head into the 2nd quarter?

With out hesitation I can tell you that it is a ridiculously busy time and still in the sellers favor. In this blog we will get into some of numbers of the market and what the experts are saying.

Before I start I will say, this is not legal or financial advice and I do not have a crystal ball. What I do have is 20 years experience in real estate and have been through a crash and pandemic, I understand the market and the economics associated with it. Every other week I host a podcast for a national provider of market data so I am up close to what is happening.

OK disclaimer and humble brag out of the way.

Maine Real Estate Update: Prices Increase

According to the Maine Realtor Association’s April 2023 summary, MAINE HOME VALUES UP 3.85 PERCENT IN MARCH.

According to Maine Listings, 858 homes changed hands last month, compared to 1,031 homes in March 2022. The median sales price for homes sold rose 3.85 percent to $337,500 comparing March 2023 to March 2022.

The National Association of Realtors reported a home sales decline nationwide of 21.1 percent in March 2023 compared to March 2022. Prices also eased 1.4 percent to a national MSP of $380,000. Regionally, home prices in the Northeast rose 1.0 percent to $395,400, while sales dipped 21.2 percent comparing March 2023 to March 2022.

Let’s unpack this.

If we look at the chart we can see that in the first section shows 2023 over 2022 there were less sales across the board. At first glance one might thing that there is a slows down of sales, when in fact the opposite is true. The reason for the lower number of sales is simply a lack of inventory on the market.

If there were economic troubles as the news like to portray, then the prices would not have risen. However, looking at the chart we can see that on average we experienced a 9.54% increase statewide year over year, which shows demand is still high.

Is it a good time to sell my home in Maine?

The unanimous answer to this question from one of the top teams in the state of Maine, the Mateja Group of Keller Williams, it’s an excellent time to sell, maybe the best market conditions to sell in the last 20 years.

The tricky part of the process is buying. If you are selling and buying it’s strongly suggested that you use a real estate professional who has a network of homes available which may not be on the market yet.

Of course, if you are are heading out to the RV life, have a second home or camp then you don’t have the same constraints so your time to capitalize on the market is now.

Something to take into consideration is your tax liability. If you sell your home and it is your primary residence for 2 of the last 5 years then you exempt from capital gains of $250,000 if single and $500,000 if married. Anything more than that I’d suggest talking with a tax consultant to minimize the liability.

Of course if it an investment property it’s a different ball game and you may consider a 1031 Exchange. We’ll delve into that another time.

If you are wondering what your home may be worth, use this Simple Online Valutation Tool to determine your homes value. Of course it is online so a to determine a real and true value a quick visit to the home is required.