For the most part, the experts, such as NAR (National Association of Realtors), are forecasting an increase in home prices for the next year. In the past four years (2018 to 2021), Maine has seen an average 12% increase in home values. In 2022 alone, home prices have risen 13% and the year isn’t even over.
If you’re a homeowner or planning to sell your home in Maine, you’re still in luck as these values are forecasted to rise. However, maybe at a slower rate. Historically, homes in North America have appreciated at a 4% rate. In the forecast above, rates average out to a 2.5% appreciation – 1.5% drop from the past. The current undersupply of homes on the market is a good indicator as to why home prices are still increasing. The lack of homes on the market vs. the steady amount of buyers looking to buy creates what is known as a sellers’ market – a direct issue of supply and demand. What’s to see for Maine buyers, however, can be mirrored off these national predictions.
To support these predictions, millennials are moving through the market. They are the largest demographic, just behind baby boomers, and as first-time homebuyers in their prime homebuying years, there’s no slowdown in sight. The bottom line is – no matter where you are in your home-buying journey, talk to a real estate professional to understand your purchasing power and to find the right home for you.
Michael, along with his wife Laura, is co-owner of Maine Home Connection, an independent real estate company located in Portland. Maine. Together they started the brokerage from scratch with a new vision of what a company could look like if it focused completely on the needs of our clients and our agents.