January 2022 Market Update!
Strong demand for single-family homes in Maine persisted for the full sales year of 2021. Statistics shared by Maine Listings indicated the statewide median sales price (MSP) reached $299,000 last year, showing an increase of 16.8 percent with the number of sales increasing 2.41 percent. The MSP indicates that half of the homes were sold for more and half sold for less.
2021 proved to be a historic year for residential real estate in Maine. Reaching 20,401 reported transactions and MSP of $299,000, the sales year for 2021 saw the highest numbers in more than 21 years. According to Maine Listings, December 2021 indicated a 12.22 percent MSP increase to $303,000 and a slight decrease of 12.65 percent in sales compared to December 2020.
Following the 2020 COVID shutdown, 2021 began with positive momentum. Though sales demand has been strong, the limited for-sale inventory has led to a supply-demand imbalance. Most markets have experienced a dip in number of residencies sold but a double-digit increase in median sold prices.
Our company continues to excel and remains the leading real estate firm in the Damariscotta area. As of the date of this report, our brokers have closed 10 transaction sides with a total volume of $3,463,000 —up 214% over our Y-T-D numbers in 2021. In comparison, Drum and Drum Real Estate has sold $400,000 with one side, and Sotheby’s has sold $600,000 with one side.
Most of the year-to-date 2022 property sales locally have occurred in Boothbay (4), Boothbay Harbor (4), Wiscasset (5), and Jefferson (5). Slightly fewer sales have happened so far in Edgecomb (2), Damariscotta (2), Newcastle (1), Nobleboro (1), Waldoboro (1), Alna (1), Somerville (1), Bristol (1) and Southport (2). Towns not seeing any sales yet include South Bristol (0), Dresden (0), Whitefield (0), Bremen (0), Westport Island (0), and Monhegan Island (0).
There are currently 84 single-family homes for sale in Lincoln County (down from 99 in December), with 35 percent of those priced at or above $500,000. The 737 residential sales that have occurred in the last 365 days represent transactions in the range of under $100,000 (4%), $100,000-$249,999 (26%), $250,000-$499,999 (46%), $500,000-$999,999 (19%), and $1 million-plus (6%). Listing inventory remains super low—it is a great time to sell and our brokers are ready to answer your questions about the process.
The current market absorption rates for Lincoln County homes are 1.3 months (under $100,000), 1.0 months ($100,000-$249,999), 1.3 months ($250,000-$499,999), 1.8 months ($500,000-$999,999), and 2.3 months ($1 million and up). This tells us how long it would take for existing inventories to be absorbed into the market at current rates of sales if no new listings were introduced.
Newcastle Realty tracks Lincoln County and statewide sales, along with other important metrics, which keeps our brokers fully informed of current market conditions and emerging trends as they serve buyer and seller client needs. Questions or comments may be directed to Dennis Hilton, President of Newcastle Realty at firstname.lastname@example.org or 207-380-3435.