August 19, 2022
Portland, ME - While statewide residential real estate sales dropped 15% over July last year, there was no corresponding drop in prices. Following the federal reserve rate increase, buyers, sellers, and sales agents alike expected prices to start to decline. “When meeting with new clients these past few months, the first question from both buyers and sellers is the same. They ask if property values have dropped from the highs of the past year,” said Benchmark Real Estate owner Tom Landry. While he admits that he expected to see sales prices drop over the summer months, so far, they remain well over 2021 levels.
Median Sale Price July 2021 vs 2022
- Statewide – 12.38% increase from $315,000 to $354,000
- Cumberland County – 112.44% increase from $450,000 to $506,000
- York County – 15% increase from $400,000 to $460,000
- Piscataquis County – 29.03%% increase from $155,000 to $200,000
In Portland, the story is the same. Lower sales volume and increased prices over last year. That said, Landry reports that for those in the business, the impact of the Federal Reserve action was felt immediately. With rates hovering around three percent for several years, Landry said that some buyers were in a state of shock. “Several of our team’s buyers paused their search right away,” he said. But he added that after a brief pause, they resumed with the assumption that rates were going to go even higher.
He said that prices remain high mostly because inventory remains lower than normal. “Volume is down because listings are down. So, buyers may not see the price relief they anticipated for some time and sellers could continue to benefit from the tight market.” For example, the following shows the number of Portland listings and corresponding prices for the past two months as well as compared to 2021.
Number of Portland Listings
- June vs July 2022
- Overall – down 15.87%
- Single families – down 15.9%
- Condos – up 10.71% (due to new developments)
- 2-4 unit multi-families – down 28.57%
July 2021 vs July 2022
- Overall – down 32%
- Single families – down 21%
- Condos – down 49%
- 2-4 unit multi-families – down 21%
Portland Median Sales Price
June vs July 2022
- Overall – up 8.47%
- Single families – up 13.82%
- Condos – up 3.3%
- 2-4 Families – down 5.69%
July 2021 vs July 2022
- Overall – up 9% from $512,000 to $560,000
- Single families – up 22% from $461,500 to $562,000
- Condos – down 6% from $498,000 to $469,000
- 2-4 Families – up 9% from $645,000 to $705,000
Landry says there is every indication that rates could continue to rise. But whether this will result in price drops depends on whether more sellers decide to cash out now or wait. “Only one thing is for certain, we aren’t certain about anything right now.”
