Maine’s housing market experienced a notable shift in September, with the median home sale price declining for the second consecutive month. According to data from the Maine Association of Realtors, the statewide median price fell to $402,500, indicating a significant change in the market dynamics as half of the homes sold for more and half for less.
This decrease marks the first time in over five years that the median home price in Maine has fallen for two consecutive months. Jeff Harris, president of the Maine Association of Realtors, highlighted this trend, stating, “We are seeing an increasing number of homes for sale, increasing time-on-market, and pricing concessions which eases the competition that buyers have been facing for the past five years. We’re moving beyond the pandemic frenzy.”
Despite the decline in Maine, national home prices continue to rise. The National Association of Realtors reported that the national median sale price was $415,200 in September, reflecting an increase of approximately 2.1% from the previous year. This trend of rising prices has persisted for 27 months, according to the association’s findings released on the same day.
Rising Sales Amid Price Declines
Interestingly, the decline in home prices in Maine coincided with an increase in sales. The state recorded a 5.1% rise in the number of units sold, with 1,582 transactions in September 2024 compared to 1,505 in September 2023. Nationally, sales also increased, though at a slightly lower rate of 4.1% compared to last year.
The increase in sales activity has been attributed to a recent drop in mortgage rates, which has improved housing affordability. Lawrence Yun, chief economist at the National Association of Realtors, noted that this improvement has driven the national rise in home sales, stating that the market is reacting positively to these shifts.
As the Maine housing market continues to evolve, homebuyers may find a more favorable environment characterized by increased inventory and reduced competition. The ongoing changes reflect broader trends in the national housing market, suggesting a complex interplay between local and national factors influencing home prices and sales.
This situation will be monitored closely as the market adapts to the new economic realities and buyer preferences in the wake of the pandemic.