19 Commercial Street Portland, ME 04101 | 207-517-3100MaineHomeConnection.com | Info@MaineHomeConnection.com2022 Market Report
2019 2020 2021 202225,000 20,000 15,000 10,000 5,000 0 Year Over YearIn Maine, buyer demand remainedstrong as the year started with a surgein prices but consistently low inventoryacross all price segments alongsiderecord inflation in the fall resulted in anoverall dramatic decline of 17% in homessold in 2022 vs 2021.Multiple offers continued to drive pricessignificantly higher, resulting in medianselling prices (MSP) consistently abovelist price. The year-end MSP of $335,000was the highest on record andrepresented a 12% increase over theprevious year. General OverviewThe 2022 housing market was both vexing and remarkable, depending upwhether you were buying or selling. The pandemic and resulting remote workcontinued to define how, when, and where people bought homes. The medianUS home price hit a record high before falling slightly. Rising rents stretchedrenters’ budgets. High inflation put increased pressure on almost everyone. Forthe first time in history, mortgage rates doubled in the span of just one year. Overall, single family home sales inMaine declined to 16,968 units, endingsix years of consecutive sales records. The prices of goods and services rose to6.5% year-over-year, the highestpercentage since August 1982 and morethan double the rate from November2021. Rising prices severely limitedAt year-end, homes available for sale declined 8% in 2022 vs 2021 and onlybegan to moderately increase towards the last quarter of the year. InCumberland County, where competition among buyers was the most intense,this low inventory situation resulted, on average, in ten showings perproperty before a contact was accepted. This was by far the highest in thestate.consumer spending and slowed nearly every facet of the housing market. 19 Commercial Street | Portland, ME 04101 | 207-517-3100MaineSingle FamilyDASHBOARDMedian Price12.0%$335,000Number of Sales17.7%16,9589 DaysMedian Days to Contract12.5%%101.2%Listing Discount0.2%2,322Inventory16.4%2.1 monthsAbsorption Rate90.9%Annual unit sales reversethe 10th consecutive recordand start to decline.Median selling pricescontinue to trend upwards,increasing 8 consecutiveyears.Listing inventory remainedat historic lows throughout the year, in all segments.2019 2020 2021 2022$400,000 $300,000 $200,000 $100,000 $0 Closed Sales20,19918,35420,60916,958+10.0% +2.0% -17.7%-2.2%Median Sales Price255,089225,000299,000335,000+13.4% +17.2% +12.0%-4.5%
Year Over YearMedian Price12.5%$371,275Number of Sales22.9%1,9107 DaysMedian Days to Contract0.0%102.7%Listing Discount0.6%244Inventory10.4%2.0 monthsAbsorption Rate81.8%19 Commercial Street | Portland, ME 04101 | 207-517-3100MaineCondominiumsDASHBOARD%Condo sales represent 10%of Maine's market, downslightly from 2021.47 condos above $1,000Kwere sold in 2022 vs 77above $1,000K in 2021.Portland condo salesdropped dramatically afterposting a record of 503units sold in 2021.Condominium OverviewCondos typically represent 10% of the residential housing market and 2022 was nodifferent, although the total volume was considerably less. In Cumberland County,they were nearly 26% of the market compared to 22% the prior year. Market SegmentsGenerally, the condo market across Maine reflected a better inventory situationthan that affecting single-family homes, but was still below normal levels. The three largest markets for condos were Portland (295), Old Orchard Beach (116),and Wells (102). The decline in Portland had been significant, as many newdevelopments in the downtown area were completed during the prior year andresales were much less. The 3.1% decline in median prices reflected the shift to lessup-scale properties being sold in the last twelve months.
Year Over Year19 Commercial Street | Portland, ME 04101 | 207-517-3100Cumberland CountySingle FamilyDASHBOARDMedian Price13.7%$491,500Number of Sales17.5%3,3326 DaysMedian Days to Contract0% Change%105.2%Listing Discount0.1%230Inventory24.3%1.1 mosAbsorption Rate83.3%Inventory in nearly all pricesegments remained tight.The YTD MSP in CumberlandCounty set an all-time record.DOM was at historically lowlevels consistently.While declining in the 2ndhalf of the year, homes soldat over 1% of listing price.30% of closings were cash.Single-Family OverviewWe actively track property sales in southern Maine in general and the greater Portlandmarket in particular. In 2022, Cumberland County experienced a significant decline insingle-family unit sales constrained in many cases by lower inventory and high-interestrates. Prices continued to escalate, as they have in most parts of the country.Virtually all communities ended the year with lower sales in 2022 vs 2021 - somesignificantly, as seen in the chart below.The median price of $491,500 in Cumberland County was an all-time record,although the rate of growth decelerated during the closing months of year. Nearlyevery community in the greater Portland area recorded double-digit annual growth.As of December 2022, the median price has been up and over the same month ofthe previous year for 45 consecutive months.
Year Over YearMonthly Updates:Each month, Maine home sales statistics are updated on ourwebsite, by town, county, and state. Reports are available fordownload. Visit: MaineHomeConnection.com19 Commercial Street | Portland, ME 04101 | 207-517-3100MaineReal Estate UpdateDASHBOARDRental prices increased12.8% nationally in 2022 to$2053, the highest on record.There is a current effortunderway to increase rentalunits in Maine. According to CoreLogic,homeowner equity is up15.8% nationally in 2022,totaling $2 trillion.In Maine, 45% of homeswere sold above list price.Statewide, new listings weredown for the year by 11.9%.The market for green homesincreased dramatically.The price range of $350K to$500K declined 6.5% in2022, representing 23% of allsales vs 20% in 2021.Growth in vacation homeswas steady all year.774 homes valued over $1million were sold in 2022.Remote work continues toexpand search area for homeownership.Home purchases by out-of-state buyers reached 26%.Working with local Mainebanks provided an advantagefor buyers in 2022. It took 9 days to get a homeunder contract in 2022 vs 8 days in 2021.Status of InventoryYear-over-year inventory levels have continued to drop since reaching a high of 9,176 inAugust of 2018, and a low of 1,531 in March of 2022, representing a decline of historicproportions. During 2022, inventory graduallyincreased. Looking at the dataseasonally, inventory levels acrossMaine were down 32.9% in 2022vs 2021 in the winter months,reaching the lowest level inMarch. Conditions improvedduring the summer as homesavailable for sale trailed the prioryear by 4.3% by July - yet stillwere at unprecedented lowlevels. The lack of inventory is alsoevident in the Months of Inventorycalculation (also known asAbsorption Rate). The AbsorptionRate is a measure of how long ahome would last on the market atthe current rate of sales. The area shaded in gray reflectsa "balanced" market. Maine hasbeen a seller's market for the lasttwo years, but showed sings ofchanging in late 2022.