Maine Housing Inventory Reaches Post-Pandemic High in September

The number of homes for sale in Maine has reached its highest level since the onset of the pandemic, indicating a significant rebound in the housing market. As of September 30, 2023, there were over 5,400 homes listed for sale, marking the sixth consecutive month of rising active inventory, according to a report from Jeff Harris, president of the Maine Association of Realtors. This resurgence in available properties is still below the pre-pandemic figures but suggests a shift towards a more balanced real estate market.

In his report, Harris noted that “the inventory level of homes for sale is building as more sellers enter the market — currently at the highest level since October 2020.” The increase in supply may provide much-needed relief to prospective buyers who have faced a competitive market characterized by limited options and rapid sales during the pandemic. Homes often sold within days of listing, frequently at prices exceeding the asking amount, leading to a challenging environment for buyers.

As of the end of September, listings included nearly 2,200 new properties. This surge in inventory is the first instance since late 2019 where the number of homes for sale has exceeded 5,400. The data from Maine Listings highlights a dramatic decline in available properties following the pandemic’s onset in March 2020, when inventory fell sharply.

While Maine Listings reported approximately 5,400 homes, other national platforms suggest even higher figures. For instance, Zillow indicated that the state had over 6,800 homes available with an average asking price of nearly $437,300. Similarly, Redfin reported that the number of homes for sale surpassed 9,100 as of last month. These insights reveal that the current housing inventory is markedly improved from the pandemic’s peak when fewer than 1,500 single-family homes were available, according to Chris Lynch, president and owner of Legacy Properties Sotheby’s International Realty.

Despite the increase in inventory, Lynch warns that Maine’s current housing stock is still only about 30 percent of the levels seen a decade ago, when buyers had around 15,000 homes to choose from. He reflected on the previous market conditions, stating, “If you remember that period, things were going along at a steady pace with both buyers and sellers feeling like there was a strong, constructive dialogue on the value of a home and the terms and conditions that would result in a sale.”

Looking ahead, Lynch predicts that the number of homes available for sale is unlikely to rise significantly in the coming months. He points to a slowdown in new construction that has not kept pace with local demand. Additionally, many homeowners are hesitant to sell due to being locked into lower interest rates, as current rates hover slightly above 6 percent.

As Maine navigates its evolving real estate landscape, the increase in housing inventory may signify a turning point for buyers who have faced a turbulent market over the past few years. While the challenges remain, the current data offers a glimmer of hope for those looking to enter the market.