Demand for single-family homes in Maine remains strong, but a lack of inventory is causing sales to dwindle while prices climb. 

Sales statewide fell to 878 units last month from 1,062 in February 2021, a decrease of more than 17 percent, while the median sales price rose to $297,500, up more than 21 percent from $244,900 during the same month a year ago, Maine Listings reported Friday. The median sales price indicates that half the homes sold for more than that figure and half sold for less.

Madeleine Hill, president of the Maine Association of Realtors, said ongoing inventory issues make it impossible to keep up with the demand for housing in the state. 

“Even after two years of the pandemic, most homes for sale in Maine are receiving multiple purchase offers and are under contract within days,” she said. 

Despite sales dipping below 1,000 units, Hill said last month was one of the best Februarys on record – the third-best since the association began keeping records 24 years ago.

“While it’s a competitive market for buyers, record numbers are becoming Maine homeowners,” she said. 


Changes in home sales volume and median price varied widely throughout the state during the three-month period from Dec. 1 through Feb. 28 compared with the same stretch the year before, according to Maine Listings.

Franklin County saw the biggest decrease in sales at nearly 26 percent, while sales increased in Androscoggin County by 9.3 percent and were flat in Aroostook County. 

Washington County had the biggest increase in median sales price during the three-month period at 51 percent, while Hancock County had the lowest increase of only 0.8 percent.

Home prices remained highest in Cumberland County, where the median sales price was $429,950, and York County, where it was $419,900. Despite an almost 24 percent increase, home prices in Aroostook County remained the lowest in the state at a median of $129,950.

Nationally, home sales fell by 2.4 percent in February compared with the same month a year ago, and prices rose 15 percent to a median sales price of $357,300, the National Association of Realtors reported Friday. 

Regionally, sales in the Northeast fell by nearly 12 percent, and the median sales price rose by over 7 percent to $383,700.

Mortgage rates are on the rise across the country, further limiting buying power for would-be homeowners. 

The average rate for the benchmark 30-year mortgage rose to about 4.2 percent this week, moving above 4 percent for the first time since May 2019, according to mortgage buyer Freddie Mac. A year ago, the average rate stood just shy of 3.1 percent.

The National Association of Realtors estimates that the rise in rates and escalating prices has pushed up the monthly payment on a home by 28 percent from what it was a year ago.

Related Headlines

Comments are no longer available on this story