Facts are stubborn, but statistics are more pliable – Mark Twain
Each month we provide updates of the health of the Maine real estate market. Our latest video, (Market Trends Above) highlights the latest Maine market news.
However, this month we wanted to highlight some brief insights from a national perspective. August was the 151st consecutive month that the U.S. has experienced year-over-year home price gains. However, price growth is starting to slip, and annual forecasts are showing smaller anticipated gains. As of August, home prices rose only 0.2% and the current forecast for next year is only 2.2%. Interestingly, the share of listings with price cuts reached the highest level in over five years, coming in at 19.3%.
Much of this sluggishness can be attributed to the high mortgage interest rates that are continuing to challenge the housing market. As buyers remain cautious, sales remain low. However, the highly anticipated rate cuts from the Federal Reserve this fall may help improve consumer purchase sentiment for the housing market.
There were 35.8% more homes actively for sale on a typical day in August compared with the same time in 2023, marking the tenth consecutive month of annual inventory growth and the highest count post-pandemic. While inventory in August improved, it is still down 26.4% compared with typical 2017 to 2019 levels. (Note – this is also true in Maine)
Relationship between inventory & days-on-market
Nationally the current relationship between rising inventory and days on the market to be about 6:1 for U.S. metros. Every 6 percentage point annual increase in inventory is correlated with a one-day increase in the median days on the market.
This is just the tip of the iceberg in terms of information we have on the market. To learn more, especially if your are thinking of making a real estate move this year, let’s find time to sit down and review the numbers in greater detail. Knowledge is Power!
As the marketplace shifts, whether you’re selling or buying, communicate with an agent at Maine Home Connection early for the best strategy to navigate the complexities of your transaction. With high interest rates and record level home prices, Maine’s real estate market continues to be challenging. If you are looking to buy or sell in the near future, it is a good idea to consult with one of our professional MHC agents.
Until next time … Imagine More!
