Maine Set a New Record for How Much It Costs to Buy a Home

Maine's housing market isn't getting any better, and new numbers prove it.

The Portland Press Herald reported that the demand for single-family homes is still very high in Maine. That demand has pushed the average price up over seven percent to just under $400,000. People are paying that and more as closings are up for the fourth straight month in Maine.

The last record was set last year at $385,000 for the median price of a single-family home. The Portland Press Herald quotes Paul McKee, the association president and a broker with Keller Williams Realty in Portland:

Sellers have become more active in 2024. The 3,896 homes for sale in May were the highest number since August 2022 – 21 months ago – and the second-highest in 32-months – since September 2021. With more homes for sale, more transactions are happening.

Mainers Are in a Catch-22

Maine is a big state with many different real estate markets. In some Maine markets, you might have some wiggle room to negotiate. But in many others, there simply aren't enough homes on the market, and that puts bidding wars in place and raises the median price. The average price for a home nationally was $419,300, which was a new record and almost six percent higher than last year's record price of $396,500.

There are Mainers who are trapped in the home they own right now. For reasons like expanding the family, or a new job at a different location, some Mainers simply can't move. Sure, you may be able to get top dollar for your home, but you can't move because you can't afford anything. Lawrence Yun, chief economist with the National Association of Realtors, said this about mortgages,

The mortgage payment for a typical home today is more than double that of homes purchased before 2020. Still, first-time buyers in the market understand the long-term benefits of owning.

Everybody understands the benefits of owning! But if mortgages have 'more than doubled' and your salary hasn't, that math does NOT add to being a homeowner. Yun did say that prices should calm down as more homes go on the market, but we continue to see an unfriendly housing market for those without a lot of cash.