Not a day goes by when I don’t get asked at least once “how’s the market”? Almost everyone has a vested interest in real estate. While the charts below provide the sales results for the first eight months of the year, we wanted to take a few moments to provide you with some thoughts about what to expect over the next several months.
First, home price growth is slowing and is approaching its peak, if it hasn’t already. Recently the month over month rate of growth is cooling. Buyers are a bit less frantic than earlier this year. Interest rates are expected to remain low for the near future. Inventory is improving. In Cumberland County, for example, the inventory of homes available for sale reached a historic low in February 2021, 52% below 2020 and 65% below 2019! Since that point in February 2021, inventory has increased each month and now stands only 3.2% below prior year. Still incredibly low – but improving. This situation is not true in all US markets.
As the market shifts towards fall, it is important for buyers and sellers to manage their expectations. For example, in higher priced segments, above $1 million, the buyer pool is smaller and the number of offers will be less. Not all properties will sell above asking price. Homes priced in lower segments, however, are going to continue to be more competitive, with more offers and inflated prices. This is especially true as many first time home buyers are returning to the market after missing out on many opportunities earlier in the year.
In Maine and across the county there simply is just not enough properties for everyone who is looking to make a purchase. In many major metro areas there are concerted efforts going on to relax zoning restrictions in order to increase the housing supply. Options such as building higher density housing, building houses closer together, more houses on one plot of land and changing zoning regulations to make it easier for builders to build all seem to be on the table currently.
If you are thinking of selling this year, let’s talk soon. When it comes to marketing, no real estate company in Maine is better than MHC. Use our skills to your advantage!
Until next time, be safe and … Imagine More!