All real estate prices are up, but Portland condos are smashing past records threefold increase in sales over $1 million and first ever $3 million plus sales.
Portland, ME – August sales statistics for the month of August show mostly more of the same. Higher prices and fewer listings than this time last year, as well as signs of the typical summer slowdown. But the big story in August was condos! Portland saw its highest ever condo sale at $3,675,000. And this after a string of condo sales over $2 million the past several months.
“This record-breaking sale made us take a deeper dive into Portland’s condo data,” said Benchmark Real Estate owner and Realtor, Tom Landry. Landry reported that 2021 is on track to far surpass all past condo sales records including number of sales, highest price, and highest price per square foot.
Landry said that just like other segments of the residential market, price increases are driven by an imbalance between supply and demand. The lingering pandemic has caused some potential sellers to stay put at the same time more buyers from metropolitan areas want to move to Portland. Landry added that he’s also seeing growing demand due to climate migration. “I’ve had a number of clients move from western states citing fires and draughts as motivation to move.” But he explained that in the condo segment, inventory is down mostly because new condo development has lagged.
Lag in condo development
“There are very few new condo projects in the planning stages let alone taking reservations right now,” added Landry. He said that when the pandemic hit, very few investors and lenders were willing to bet on condos. “They saw people fleeing larger, multi-tenant buildings for single families in the suburbs and rural areas. This immediately put a pause on many new projects.”
As a developer and building contractor himself, Landry experienced the supply crunch caused by the pandemic firsthand. As factories across the world shut down, the supply chain was interrupted driving up building material costs and causing long delays in availability. Additionally, the permitting process in Portland slowed. This coupled with recent restrictive and costly zoning regulations in Portland and the high price of land, some developers paused their projects, moved outside the city, or gave up.
The condo numbers
Already in 2021, there have been 33 condo sales over a million dollars. This in contrast to 10 in 2020, eight in 2019, five in 2018, and only 15 in years 2010-2017. 2021 has seen seven sales over $2 million. There has only been one condo that sold for over $2 million before. That was 166 Fore Street, Unit 63 which sold for $2,050,000 in 2019 and was resold in 2021 for $3,200,000. And now with this month’s record sale, there have been two sales over $3 million for the first time ever. The top five highest priced condo sales of 2021 so far are:
- 383 Commercial Street, Unit 709 for $3,675,000
- 166 Fore Street, Unit 63 for $3,200,000
- 547 Congress Street, Units 5B & 6 for $2,775,000
- 99 Federal Street, Unit 601 for $2,711,660
- 156 Sheridan Street, Unit 5 for $2,300,000
The top highest prices per sq/ft in 2021 are:
- 166 Fore Street, Unit 63 at $1,498 psf
- 383 Commercial Street, Unit 709 at $1,158 psf
- 383 Commercial Street, Unit 702 at $1,022 psf
- 167 Newbury St, Unit 601 at $976 psf
- 99 Federal St, Unit 601 at $962 psf
Landry explained that these record-setting sales came from across a variety of buildings and associations and include both new construction and resales. “This shows that there is broad strength in the condo market in Portland,” he added.
Below are the August numbers across all residential segments. The statistics were prepared by Benchmark Real Estate using data from Maine Listings.
Highest & Lowest Sales of August 2021
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