The beginning of the end of the hot real estate market in Maine may have taken root in Washington, DC, rather than Augusta or Portland.
Last week, the Federal Reserve raised interest rates to the highest in 40 years to combat inflation.Chair Jerome Powell said on Wednesday: Americans should expect more hikes..
Dava Davin, owner of the Portside Real Estate Group based in Falmouth, one of the state’s largest real estate companies, has called the pandemic situation an “extreme seller market” and is changing under the influence of the Fed. He said there were signs. Movement, high inflation, stock market declines and other factors.
“People’s purchasing power has changed, and it may also have them paused a bit,” Davin said. “There is no sense of urgency.”
The main market themes that Davin touched on during his chat with Bangor Daily News are:
Decrease in offers
Davin said home sales continue to be very fast, but offers are declining now. Her house in Portland had 20 offers a few months ago, but recently she saw one that received only two. It was still sold for $ 60,000 above her asking price.
“There are signs of this slow change,” she said.
The house is still moving fast.A single-family home on Washington Avenue in Portland, sold for $ 510,000 this week Listed on Monday and sold by Tuesday To help a doctor at the main medical center. As of Thursday afternoon, Redfin recorded 107 single-family home sales in Maine from Monday to Thursday. The median price was $ 345,000.
The most expensive was a $ 2.52 million four-bedroom home on Thomaston’s Spruce Head Island. Sold 25 days after listing. The Cheapest: Gilford’s 3 Bedroom For $ 50,000 after being on the market for over 250 days.
What goes up must go down. Like other markets, the real estate market is developing to some extent naturally. Many in Maine have already bought the house they were trying to buy, Davin said. Others seem to be retreating.
“There are only a few buyers,” says Davin. “But it’s still enough to have a strong market.”
Why main is so desirable
There are many well-documented reasons why Maine has become so desirable, including the transition to remote work since the beginning of the COVID-19 pandemic and the growing popularity of rural life since then. There are factors.
Asked why Americans who can choose to live in any province of the country choose Maine, Davin said many are looking for water. There is ample access to it either by sea or lake in Maine.
Portland metro area too Recognized nationwide, She said. She said she came from there and had little reaction at the real estate conference. People tell her now that she is planning her trip.
“Portland is cool, and everyone knows it,” Davin said.
She also spoke to people who want to come to Maine to escape the harsh effects of climate change in other states, including California, where some schools had to cancel after-school sports. Due to poor air quality..
“If you’re there every day and have the option to move, that’s part of that consideration,” Davin said.
Davin emphasized that the market remains strong and demand and prices are high despite the recent decline in the market. Some drops are coming soon, including just a week after the list was posted.
“It’s a signal that people have an upper limit on what they can pay,” Davin said. “They are more price sensitive.”
The demand seen in the Maine real estate market is Out-of-state strong interest in Maine House. According to data collected on homes sold by Portside, that number went from 26% of buyers in 2020 to 33% in 2022. That number was 37 percent in 2021.
According to Davin, Portside sold his Brunswick home twice for $ 605,000 in February and sold it to out-of-state buyers for $ 680,000 in May. In both cases, the buyer did not move in. It is currently on the market for $ 680,000. This is an extreme case, but she expects that some out-of-state buyers will not stay in Maine for extended periods of time.
“We can believe in our state and keep the wonderful people who want to stay,” Davin said.