November 2022 Market Update

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According to the Maine Association of Realtors, buyer demand remains healthy in Maine, while rising interest rates and tight inventory continue to affect the real estate market. Maine Listings reported a 7.79 percent rise in the cost for a single-family existing home, which reached a median sales price (MSP) of $332,000 in October 2022 compared to October 2021. The MSP indicates that half of the homes were sold for more and half sold for less. October 2022 sales dipped 23.41 percent compared to a year ago, due to the existing market factors.

After a two-year streak of double-digit pricing increases, we’re finally seeing some relief. While demand remains steady for Maine’s tight for-sale inventory, increased mortgage interest rates have impacted the market. Buyers who need to finance their home have less purchasing power, and the recent pricing deceleration indicates that sellers are adjusting. Sales volume last month outpaced the number of homes coming onto the market, and for-sale inventory remains tight with eight percent fewer homes on the market in October 2022 compared to September 2022 – and 58 percent fewer homes for sale than pre-pandemic October 2019.

The National Association of Realtors reported a 28.2 percent decline in sales nationwide, with a national MSP of $384,900—a rise of 6.2 percent in the past year. Regionally, sales in the Northeast reflected a similar trend, with a decline of 23 percent compared to October 2021. The regional MSP jumped 8.0 percent to $408,700.

Our company continues to excel with a full staff of exceptional local agents. We are excited to remain a leading real estate firm in Lincoln County as we serve buyers and sellers. As of the date of this report, our brokers have closed 158 transaction sides with a total volume of $67,660,014—up 27% over our Y-T-D numbers in 2021—and we are pleased to report that approximately one-quarter of our sales volume has come through our new Boothbay Harbor branch office. In comparison, Drum and Drum Real Estate has sold $11,073,025 with 29 sides, and the local Sotheby’s office has sold $58,016,451 with 78 sides.

Most of the year-to-date property sales locally have occurred in Waldoboro (89), Jefferson (65), Boothbay Harbor (71), Wiscasset (65), Damariscotta (45), Boothbay (60), and Bristol (79). Slightly fewer sales have happened so far in Dresden (31), Edgecomb (32), Newcastle (26), Nobleboro (33), Westport Island (30), Whitefield (34), and Southport (24). Towns seeing even fewer sales include South Bristol (21), Bremen (11), Alna (11), Somerville (7), and Monhegan Island (2).

There are currently 119 single-family homes for sale in Lincoln County (down from 131 in October), with 44 percent of those priced at or above $500,000. The 622 residential sales that have occurred in the last 365 days represent transactions in the range of under $100,000 (4%), $100,000-$249,999 (21%), $250,000-$499,999 (45%), $500,000-$999,999 (23%), and $1 million-plus (7%). Listing inventory remains 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 0.5 months (under $100,000), 1.9 months ($100,000-$249,999), 2.1 months ($250,000-$499,999), 2.6 months ($500,000-$999,999), and 6.7 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 client needs. Questions or comments may be directed to Dennis Hilton, President of Newcastle Realty at or 207-380-3435.

  • Statistics are from the Maine Real Estate Information System, Inc. (d/b/a Maine Listings) for the period 1/01/2022 through 11/22/2022.