The Covid-19 pandemic has had a colossal impact on the economy, with some of the most dramatic and palpable changes seen in the housing market. Due to a short supply and high demand for homes, the prices have skyrocketed since the beginning of the pandemic.
People are learning tips and tricks for selling a house online since many buyers will make an offer on a home sight-unseen.
Real estate in Maine is seeing some of the biggest surges in the country. Moreover, interest in luxury amenities has increased as well. Maine has seen demand for in-ground swimming pools shoot up 500% over the last year.
What specific factors are driving the most expensive home sales? Let’s take a closer look at what Maine’s housing market is currently like, learn more about how buyer trends are evolving, and what it means for you.
Overview of the Maine Real Estate Market
Maine’s number of homes for sale has fallen 34.9%, while prices increased almost 20%. Despite a slight dip in the number of houses sold, the Maine real estate market is experiencing a massive boom that shows no signs of slowing down. Statewide, the amount of time a house is on the market is an average of six days.
The most notable change in the state over the last year is the uptick in out-of-state buyers. As more people in high-paying fields can work remotely full-time, the prospect of trading the chaos of big cities for the tranquility of rural life is more attainable. Over one-third of buyers currently snagging up real estate in Maine are from major cities in other states.
Companies that buy houses in Maine, along with the rush of cash buyers and big spenders to the state, created a more significant demand for high-tech features. Additionally, because interest rates are at an all-time low, buyers are taking advantage by seeking out homes with extra amenities.
Wine cellars, swimming pools, an extra-large living space with a guest house, and expansive square-foot homes are among the top characteristics buyers want. Because sellers receive multiple offers within the first 48 hours, many buyers give offers above the asking price.
Prime Real Estate Prices in Portland Maine
The asking price for Maine real estate is increasing. The median sale price for a home in Maine is $315,000, whereas last year, it was $254,000.
In Portland, the most recent data shows the median sale price is a whopping $461,500, while the most expensive homes in the city are around $3 million. In May of this year, more than 3,000 homes have sold in Portland alone. On average, a home in Portland will sell in eight days.
Despite a slight drop in the last couple of months and more expected fluctuations, you can expect current real estate trends to continue in Maine, which favors the seller.
Along with buyer trends, the definition of prime real estate is evolving. It used to be that prime real estate referred to the location. We buy homes in Portland, so one of the first things we look at is where it’s situated—the more metropolitan, the better. However, as mentioned earlier, we’re seeing buyers choose amenities over the location.
What does this mean for Maine? Maine may be stealing away the prime real estate title from places like NYC, Florida, and California. Even people who want to buy my house in Brunswick are seeing an uptick in asking prices and offers.
Manhattan, New York, long considered the ultimate location for prime real estate by realtors and celebrity names like Donald Trump and Ken Griffin (in particular, the infamous skyscraper homes of 220 Central Park South on Billionaires Row), is now seeing many homeowners flock to Maine instead in historic numbers.
Cities like Malibu, Los Angeles, and Beverly Hills (where Amazon’s Jeff Bezos has made real estate purchases) have not been immune to the mass exodus from California either. Many people fleeing states and cities formerly known as prime real estate locations are now choosing to seek refuge in the green, safe haven that is Maine.
One of many reasons is that an acre property is much more appealing than the limited square footage of a penthouse. Moreover, buyers can more easily find homes with five or six bedrooms, something virtually nonexistent in more metropolitan areas.
Prime Maine real estate offers seclusion and mixed-development: close to city life but just far enough away to have peace. Portland, in particular, offers an excellent mix of metropolitan feel and rural living.
Having a golf course and terrific views nearby, combined with a higher square-foot living space, is an excellent tradeoff for many buyers fleeing bigger cities.
A large percentage of people moving into Portland are millennials, drawn by the biotech and biopharma industries emerging in the city. The booming economy is the perfect example of what makes the state so appealing to those seeking a natural feel without compromising city comfort.
According to a recent report, 14.9% of people moving from Boston headed for Portland, Maine. Data shows that listing agents have under a month of housing unit inventory. Typically, they would have five to six months’ worth of inventory to show prospective clients, which speaks volumes about the current housing market in Portland.
The Most Expensive Home Sales in Maine
Let’s take a look at the sale prices for the ten most expensive homes in Maine to get a comparison against residential real estate in formerly prime locations.
- The most expensive home in Maine has a sale price of $12,850,000. It has six bedrooms, nine full bathrooms, and three half baths covering a whopping 15,470 square feet. The property includes 265 acres of beautiful land, including a lake.
2. The second most expensive home is a luxurious house priced at $8,900,000. Superb waterfront views, seven bedrooms, and six bathrooms make this 8,196 square-foot mansion an investor’s dream.
3. The third most expensive home includes an infinity pool, a guest house, and a home movie theater. It sprawls across 23 acres of land, ensuring privacy and seclusion. The sale price for this 6,870 square-foot home is $8,500,000.
4. At $6,950,000, the next most expensive home on the Maine housing market is close to the median sale price for a Beverly Hills home. Majestic ocean views and an impressive nine bedrooms make this 4,800 square-foot home an instant stunner.
5. If you love privacy and seclusion, it’s hard to imagine a better home than this one with 10 bedrooms and 13 bathrooms. Sitting on a breathtaking island with only a few other cottages, this 8,066 square-foot home has an asking price of $6,500,000.
6. Located on Maine’s coast of Kennebunkport’s Cape Porpoise, this future home is on the market for $6,250,000. Architects have a sample layout including four bedrooms and six bathrooms across 4,929 square feet.
7. Going for $6,200,000, this huge home maxes out at 5,868 square feet. It features amazing panoramic views, tennis courts, and a swimming pool, along with five bedrooms and six bathrooms.
8. This New England-style home features gorgeous stone walls and immaculate gardens. The home costs $5,500,000 for four bedrooms and eight bathrooms across 9,545 square feet.
9. Currently listed for $4,995,000, this oceanfront home underwent a price cut of $505,000 in the last month. Though it is only a 1,905 square-foot home with three bedrooms and two bathrooms, the property sits right on the beach. For the views and the seclusion, it’s worth the price.
10. If $4,995,000 is your ideal price, but you’re looking for something bigger, consider this house on the coast of Penobscot Bay. It has three bedrooms and seven bathrooms covering 4,600 square feet. The house looks classic from the outside but has an updated interior.
Compared to the nine-figure sale prices for the most expensive homes in places like Belair and Palm Beach, the prices for the waterfront estates of Maine seem almost like a drop in the bucket. The reasonable prices are great for both sellers and buyers navigating Maine residential real estate.
There’s no doubt that despite (or perhaps because of) the pandemic, real estate in Maine has become more popular than ever. The demand for ocean views and secluded, picturesque scenery is at an all-time high.
Additionally, with cities like Portland showing a rapid growth in high-paying industries and the influx of more youthful buyers, Maine is bound to increase in popularity as time goes on.
With buyer trends exceeding the asking price, you may seriously consider selling your Maine home. Using the best home buying companies will help the process of selling as it is not easy to do alone. First, you must decide which of the three ways to sell suits you best: selling directly to a buyer, selling through a realtor, or selling by the owner. There are pros and cons to each choice.
Furthermore, assessing your home’s value requires expert guidance. Make sure you understand the market trends so that you don’t miss out on maximizing your profit. Given the current market conditions, this might be the best time to sell.