Market Update - 2020.12

MAINE HOME VALUES JUMPED 13.78 PERCENT IN 2020; SALES INCREASED 9.82 PERCENT

AUGUSTA (Jan. 22, 2021)—Maine’s residential real estate market fared well during COVIDimpacted 2020. Statistics released today by the Maine Association of Realtors and Maine Listings show a sales increase of 9.82 percent for all single-family existing homes sold during 2020. Values rose by double digits during the sales year; the statewide median sales price (MSP) reached $256,000—an increase of 13.78 percent. The MSP indicates that half of the homes were sold for more and half sold for less.

“2020 was a year like no other for residential real estate in Maine,” says Aaron Bolster, Broker/Owner of Allied Realty in Skowhegan and 2021 President of the Maine Association of Realtors. “The sales year ended with historic highs for the number of reported transactions (19,921) and median sales price ($256,000) since we began compiling data more than 20 years ago.”

During the month of December only, sales across the state of Maine were up 31.53 percent compared to December 2019, and the statewide MSP of $270,00 represents an increase of 15.38 from the previous year.

Nationally, December 2020 sales of single-family existing homes jumped 22.8 percent over December 2019. According to the National Association of Realtors, prices were also on the rise last month, with an increase of 13.5 percent to a national MSP of $314,300. Sales in the regional Northeast climbed 27.4 percent and the regional MSP reached $362,100—a jump of 19 percent comparing December 2020 to December 2019.

“Last year began with the positive momentum from 2019 and then was jolted in the second quarter by the arrival of COVID-19,” says Bolster. “Since July, sales demand and volume has been exceptionally strong. Coupled with tight for-sale inventory constraints, most markets have experienced double-digit appreciation for median sold prices.”

Added Bolster, “Sustained low mortgage interest rates, Maine’s rural geography and controlled COVID experience relative to the rest of the U.S., plus the emergence of teleworking, and the allure of our beautiful four-season recreational state has created unprecedented demand for residential real estate in Maine. We expect 2021 to remain strong with buyers searching for their new home as a long-term financial investment and a quality-of-life investment.”

Below are two charts showing statistics for Maine and its 16 counties. The first chart lists statistics for the month of December 2019 and 2020 only, statewide. The second chart compares the number of existing, single-family homes sold (units) and volume (MSP) during the full 12 months of 2019 and 2020.

Maine Real Estate Statistics – December 2020 Housing Report 1/22/2021

Source: Maine Real Estate Information System, Inc. (d/b/a Maine Listings). Note: Maine Listings, a subsidiary of the Maine Association of REALTORS, is a statewide Multiple Listing Service with over 5,600 licensees inputting active and sold property listing data. Statistics reflect properties reported as sold in the system within the time periods indicated. Contacts: Maine Association of REALTORS® President Aaron Bolster (Allied Realty, Skowhegan) – 207-399-9005 abolster@alliedrealty.net - Maine Association of REALTORS® President Elect Madeleine Hill (Roxanne York Real Estate, Bailey Island) – 207-807-6578 mhill.realestate@gmail.com For additional names: suzanne@mainerealtors.com