For the third consecutive year, Maine single family home sales improved in 2014. Unit sales of 14,236 represented their highest level since 2005, when 14,592 homes were sold – the current record. Sales in 2014 represented a 7.8% increase over 2013 and a 42.9% cumulative increase since 2011.
The continued improved sales activity follows several years of significant market decline in both units and pricing, and reflects a more accurate level of equilibrium and improved overall liquidity for both buyers and sellers. The median selling price did not increase statewide – it remained unchanged at $175,000 for the last two years. As a point of comparison, the median price was at its highest level in 2006 at $192,000 – and dropped as low as $164,000 in 2009.
Most counties, especially in Southern Maine, reported similar increases in volume, while following the trend of 2014’s growth being lower than the previous year. Most individual towns and cities reported similar unit gains in unit volume, while pricing was much more variable among many local communities.
Condos represented 11.1% of the Maine real estate market in 2014, a slight decline from 2013. Unit sales improved 4.3% while pricing improved 5.9%. The pricing improvement was better than that for single family homes. The largest markets for condos are Portland followed by Old Orchard Beach. Not surprisingly, pricing varies dramatically depending upon access to, and views of, the ocean.
For example, condo pricing in Portland increase a dramatic 31.0%, while volume also increased 22.2%. This increase, however, was the result of high demand for several new developments that came on the market during the year, all priced appreciably above the median. The median price of a condo in Portland was $262,000 versus a statewide median of $195,300. In 2014 there were 35 properties sold over $500,000 compared to only seven in 2013.
On our website, you will find a profile of most southern Maine communities, which includes and review and commentary of 2014 real estate sales, along with monthly 2015 updates. As always real estate continues to be extremely local and very specific. Understanding the differences and local nuances is critical in any buying or selling decision. For more information visit: Maine Home Sales Stats.
Or download a complete report at: 2014 Maine Real Estate Report.