Maine experienced increases in both sales prices and sales volume for single-family home sales during the month of July. During the month, 1,864 homes were sold, reflecting an increase over the same period last year of 9.7%. The median sales price increased 9.2% to $225,00065 in July 2018 compared to July 2018.
Escalating prices are a direct reflection of market forces. While inventory has increased, homes in more sought after price segments continue to be less plentiful. As home price rise, homeowners are seeing the benefits of improved equity, but at the same time proving to be an obstacle for buyers – especially first-time home buyers. Additionally, higher interest rates are reducing affordability.
In some Maine markets, price gains are outpacing income growth because of consistently low for-sale inventory levels.
Existing-home sales declined for the fourth straight month in July to their slowest pace in over two years. The West was the only major region with an increase in sales last month.
Monthly sales declined .0.7% to a seasonally adjusted annual rate of 5.34 million in July from 5.38 million in June. With last month’s decline, sales are now 1.5% below a year ago and have fallen on an annual basis for five straight months.
Comparatively, Maine sales are up for the year 3.0%, with Cumberland and York Counties up 2.3% and 4.7% respectively.
According to data released today by NAR, the national median selling price increased 4.6% to $272,300 in July, and represented the 77th straight month of year-over-year gains.. The regional Northeast experienced a 1.5% sales decrease in July and is now 8.3% behind prior year-to-date results. The regional MSP jumped 6.8% to $309, 700.
The chart below highlights sales in Cumberland County through the first seven months of 2018 compared to 2017. For the first time this year sales in Portland are behind last year, along with several other local communities.
The median selling price of $310,000 is the highest ever recorded, and the month result of $321,000 is the second highest individual month. The median selling price has exceed $300,000 in six of the last 12 months.