A homebuying frenzy has washed over Maine this spring and summer, with sales climbing 5% in July compared to a year ago, according to the latest Maine Association of Realtors market report
Buyers purchased 1,570 homes in Vacationland last month, up from 1,495 the year prior, said the real estate agents group. Maine's median home sales price rose 5.25% year over year to $419,950.
Home sales grew for the fifth straight month, Jeff Harris, the group's president, said in a statement, adding that it's "the highest number since October 2020 — 58 months ago."
The group's monthly market report did not include figures on days on market or inventory levels for the state.
In recent history, Maine saw its home sales grow nearly 11% in June and another 3.2% in May. A flurry of home sales appears to be altering sellers' behavior, said Harris, an agent with Harris Real Estate in Farmington.
"With more homes for sale, buyers can be more discerning," he said in a statement. "We’re seeing that some sellers are adjusting their original pricing downward to entice buyer interest."
Maine is known for its vacation properties, including many high-end ones, but its lower-priced primary homes have become a big draw in recent months — effectively causing a flood of New Englanders to move to the Pine Tree State. Maine's population grew from 1.36 million in 2020 to 1.4 million in 2024, according to U.S. Census Bureau data, a pace five years faster than officials had predicted.
Like its New England counterpart Vermont, Maine is grappling with a housing shortage created by a population increase and stalled new home construction. One estimate found that Maine needs 84,000 new homes by 2030 to meet the demand. The state also has one of the nation's highest home vacancy rates because of the number of vacation properties.
How it drills down
Lincoln County saw the biggest percent increase in homes sold, growing 24.3% from 107 between May and July of 2024 to 133 between May and July this year, the group said.
Homes sold in Sagadahoc County rose 20.8% from 96 to 116 during that period, while Cumberland County grew 13.6% from 859 to 976. York County homes sold increased 12.6% from 627 to 706.
Median home prices in those counties also rose during the May-July period — with Lincoln rising 12.2% to $505,000 and Sagadahoc growing 3.3% to $465,000. York median prices rose 3.7% to $550,000. The most expensive residential real estate remains in Cumberland County, including Portland, where the median sales price for a single-family home rose 3.4% to $605,000.
Prices fell in only two counties during the May-to-July period — by 4.6% in Franklin and 6.7% in Knox.
Despite the rise in buyers snatching up homes, there are still more single-family and condominium properties on the market across Maine. The listings include a three-bedroom Cape Cod in Augusta for $120,000, a five-bedroom Colonial in Bangor for $995,000, and a two-bedroom townhouse in Portland for $1 million.
