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V O L . X X V I I N O. X V I 16 Fact Book / Doing Business in Maine Q UA L I T Y O F L I F E S O U R C E : Sales prices are from Zillow.com. This is representative and prices are subject to change. W ith an influx of out-of-state buyers and limited supply, Maine's median sales price for single-family homes has surged in the past year to levels unthought of before the pandemic. The median sales price surged to $346,000 in the spring, jumping from $276,000 a year ago. That compares to a national MSP of $397,600 and a regional price of $412,100. The MSP indicates that half of the homes were sold for more and half sold for less. Even with higher interest rates putting a damper on the market, the median price surged to $360,825 in June. "It's not necessarily having an inventory crisis. The problem is supply and demand and supply has not been met as builders are building fewer homes," says Madeleine Hill, president of the Maine Association of Realtors and designated broker at Roxanne York Real Estate in Harpswell. "Maine in the past year has also seen population growth for the first time in a while." "It's all happening at the same time," she says, citing people moving to Maine during COVID. "If you're working from home, why not do it from Maine?" The percentage of out-of-state buyers out of total transactions jumped from 29% in 2020 to 34% in 2021. Hill doesn't expect a drastic and immediate change in the market in the wake of interest rate hikes, a spike in inflation and unsettled global geo- political events like the war in Ukraine, but all those factors will affect the industry. "All of that will affect buyer desperation. Discretionary buyers will go away," Hill says. "Sellers may not want to miss the peak of the market. It might motivate them to list a little earlier than they wanted." "Buyers' ability to buy has been significantly impacted by what rates are doing. Interest rates of 5 to 6% are game changes. It dramatically changes what a buyer can afford compared with 3 to 4%," Hill said. While these issues affect the entire state, Portland, South Portland and the rest of southern Maine tend to be faster in following national trends. So given that the industry may change, here's a snapshot of what $350,000-ish buys in Maine. These particular listings will likely be snatched up before long, but serve as an example of the types of homes available around the MSP. WHAT DOES B U Y YO U I N $350K-ish Maine? Maine's median home price has surged above $350,000, jumping from $276,000 a year ago. But, with prices rising and inventory tight, your money doesn't go as far as it used to. B y J e s s i c a H a l l P H O T O / Z I L L OW. C O M YORK YORK 96 MOUNTAIN ROAD, LOT 0007 | In York, the best you can do for the MSP is a 1.06-acre wooded lot. Houses there were listed as high as $4.9 million. This lot, listed at $329,900, was described as a "gorgeous rural lot, just minutes from town and York beaches." S O U R C E : Maine Real Estate Information System Inc. MAINE'S MEDIAN HOME PRICE OVER A DECADE 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 $350K $300K $250K $200K $150K $100K $50K $0 $170K $175K $175K $181K $189K $200K $215K $225K $256K $276K $346K

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