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19 Commercial Street Portland, ME 04101 | 207-517-3100MaineHomeConnection.com | Info@MaineHomeConnection.com2023 Market Report

2022 2021 2022 202305,00010,00015,00020,00025,000Year Over YearSo what happened? In short: Recordmortgage rates, high inflation, andpersistently high housing and rental prices.But there was a lot more to it as well. Before the economic impact of thepandemic affected the housing market,home prices in 2018-2019 had stabilized,aligning with income levels. However, inresponse to the Covid 19 pandemic, theFederal Reserve implemented historically lowmortgage rates in 2020-2021 to prevent aneconomic downturn. This led tounprecedented gains in buyer purchasingpower, causing a surge in home pricesdespite the challenges of the 2020 recessionand the distorted Pandemic Economy.The dynamics shifted rapidly in 2023 asmortgage interest rates spiked from theirhistoric lows. This abrupt change reducedbuyer purchasing power, eliminating themonetary support that had driven sellers todemand elevated home prices. General OverviewIn 2023, the housing market faced significant challenges, extending the adverse trendsobserved at the close of 2022. It evolved into a historically challenging period forprospective homebuyers, marked by the lowest affordability levels ever recorded.Traditional seasonal patterns were disrupted, with the absence of the anticipatedspring homebuying season. Throughout the year, inventory remained exceptionally low,contributing to a substantial decline in sales. In Maine, the number of homes sold declined dramatically for the secondconsecutive year as only 13,771 single-family transactions were completed. Thisrepresented a drop of 18.8% from 2022, following a similar decline in 2021 of17.7%. Median selling prices continued to rise and reached a record at$360,000, a 7.5% increase over 2022. Prices did moderate over the second halfof the year as the impact of high mortgage rate had a significant impact. 19 Commercial Street | Portland, ME 04101 | 207-517-3100MaineSingle FamilyDASHBOARDMedian Price7.5%$360,000Number of Sales18.8%13,77110 DaysMedian Days to Contract11.1%%100.1%Listing Discount1.1%2,658Inventory13.8%2.6 monthsAbsorption Rate22.3%Unit sales declined for the2nd consecutive year,following 10 years ofannual growth. Median selling pricescontinue to trend upwards,increasing 9 consecutiveyears.Listing inventory remainedat historic lows.2020 2021 2022 20230100,000200,000300,000400,000Closed Sales20,60920,19916,95813,771+2.0% -17.7% -18.8%+10.0%Median Sales Price255K225K299K335K +17.2% +12.0% +7.5% +13.4%

Year Over YearMedian Price11.9%$414,500Number of Sales9.8%1,7247 DaysMedian Days to Contract0.0%101.6%Listing Discount1.1%297Inventory10.4%2.6 monthsAbsorption Rate19.0%19 Commercial Street | Portland, ME 04101 | 207-517-3100MaineCondominiumsDASHBOARD%Condo sales represent 13%of Maine's market, upslightly from 2022.87 condos above $1,000Kwere sold in 2023 vs 49above $1,000K in 2022.The annual record forcondo sales in Portland is503 units achieved in 2021.Condominium OverviewCondos sales, as a percentage of all residential sales, reached 13%, the highest everrecorded. In Cumberland County, they were approximately 22% of the marketcompared to 20% 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 (289 - down 2.0%), Brunswick(106 - down 8.6%), Old Orchard Beach (120 - up 3.4%), and Wells (186 - down19.4%). The inventory in Portland spiked in October and gradually fell during the lastquarter, eventually being up 2.5% for the year. Overall, total condo sales weredown 9.8% while prices were up 11.9%, albeit less than single-family homes. Market ReviewMonthly Condo Sales: Statewide

Year Over Year19 Commercial Street | Portland, ME 04101 | 207-517-3100Cumberland CountySingle FamilyDASHBOARDMedian Price7.8%$530,000Number of Sales16.6%2,7806 DaysMedian Days to Contract0% Change%103.6%Listing Discount1.6%275Inventory8.3%1.4 mosAbsorption Rate11.5%Inventory in nearly all pricesegments remained tight.The MSP in CumberlandCounty set an all-time record.DOM was at historically lowlevels consistently.Declining in the 2nd half ofthe year, homes sold at 2%below lis price in December.32% of closings were cash.Single-Family OverviewWe actively track property sales in southern Maine in general and the greater Portlandmarket in particular. In 2023, 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 2023 vs 2022 - someappreciably, as illustrated in the chart below.The median price of $530,000 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 2023, the median price had declined for four consecutive monthsfrom a high of $577,500 in September.

Year Over YearMonthly Updates:Each month, Maine home sales statistics are updated on our website,by town, county, and property type. You can also customize a monthlyreport that is available by email . Visit: MaineHomeConnection.com19 Commercial Street | Portland, ME 04101 | 207-517-3100MaineReal Estate UpdateDASHBOARDYear-over-year home sales inthe U.S. were negative everymonth in 2023.There were 1.41 million newhomes built in the U.S.through in 2023, down from1.55 million in 2022.Of homes sold in 2023, 11%were multigenerationalhomes, used primarily byfamilies with aging parentsand young children.U.S. homeownership rate isat 65.9%.First-time homebuyers madeup 28% of the market.The market for green homesincreased dramatically.21% of homesellers sell theirhomes to move closer tofriends & family.A greater demand for housing in suburban and ruralareas is leading to higherprices nationally.The full stock of U.S. housingis worth approximately $43.4trillion.The average down paymentin the U.S. for a home in2023 was $24,100.Millennials (22-40) are thelargest generation buyinghomes, making up 37% ofthe market.Status of InventoryAcross the country there were just 5.4 million new listings in 2023, the lowest level onrecord and a massive 16.4% drop from 2022. Average monthly new listings also postedsharp declines, falling from 585,000 in 2022 to 520,000 this year. In Maine, inventory graduallyincreased, beginning in April andreached its peak in October. While improving nearly 14% fromthe prior year, the overall levelwas still below record levels by astaggering four-fold. Even withhigh interest rates, low inventorylevels drove prices higher,especially in southern Maine. 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 lastthree years, but showed signs ofchanging in later stages of 2023.Active InventoryMonths of Inventory