While existing home across the country declined in August for the fourth consecutive month – in Maine we have experienced slightly different results recently. For the second consecutive month, single family home sales in Maine surpassed those of the prior year.
Through the first 9 months, sales now stand 11,175, and are now down only 2.1% from 2016 – showing improvement from earlier in the year.
The median price of 206,000 represented a nearly 5% increase over August of last year while the YTD result is 4% ahead. Interestingly, the median selling price has now exceeded $200,000 four months in a row.
As we have reported throughout the year, most Maine communities are experiencing lower sales in 2017 vs 2016 – some of them significantly. For example, sales in Portland are down 17% South Portland 10% and OOB 21%. Exceptions include Yarmouth – up 8% and Scarborough – essentially flat.
When it comes to pricing, however, every community that we track has a higher median selling price YTD – with several reporting double-digit increases in 2016. In Cumberland County alone each month of 2017 has exceed that of 2016.
Nationally, home prices have appreciated by 6.7% over the last 12 months, which is higher than the state of Maine, but lower than what we have experienced in York and Cumberland Counties. The expectation is that an additional increase of 5% is possible over the next year, based on a report published by CoreLogic (who happens to provide the software for our MLS).
Finally, focusing on inventory in Cumberland County, while still low compared to 2016, the shortage is the most acute in the lower-priced segments.
For example, the inventory level of homes priced below $250,000 is down 29% compared to home price at $500,000 or greater, which is only down 10%.
I hope you find this information helpful. Additional details are available on our website, MHC.com. If you are thinking of selling now or in the near future, and are interested in an accurate and up-to-date market assessment of your home, let’s get together soon to talk.
Until next time, I invite you to image more.