Maine's real estate market shows significant growth in February

In February, Maine's real estate market saw significant growth in sales, prices, and inventory. Homebuyers paid a median price of $381,500, which is a 9% increase compared to the same month last year. A total of 753 homes were sold, marking a 6.5% rise from February 2024. Expert Jeff Harris, president of the Maine Association of Realtors, noted that more homes are available for sale, signaling a positive trend for the upcoming spring market. He also mentioned that mortgage rates have slightly decreased, enhancing buyers' purchasing power. Homes now take an average of 40 days to sell, the longest duration seen in three years. Nationally, home prices rose just under 4% to a median of $402,500, although sales dipped slightly. In the Northeast, trends mirrored those in Maine, with a 4% increase in sales and a 10% rise in prices. Lawrence Yun, chief economist for a national association, highlighted that there are encouraging signs for home sales as buyers slowly return to the market. Maine's median price also grew almost 12% from December to February, reaching $393,000. Cumberland County remained the priciest area with a median price of $565,000. York County followed closely at $500,000, while Aroostook County was the least expensive at $152,000. Not every county experienced growth, however. Some saw sales decreases. Somerset County had the largest drop in prices and sales, while Waldo County reported a significant increase in transactions. Overall, the market is showing improvement as spring approaches.