We are pleased to present you with our Spring 2022 e-Newsletter. In this issue, we discuss the material change in the dynamics of Maine’s property market and buyer trends. As we enter the spring market, we see these trends continuing. Despite the current market being very challenging for buyers, the opportunity to sell a home for a record price has never been more widely available throughout the state.
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A preview of President & Owner Chris Lynch’s opening letter:
It may come as no surprise that Mainers represent the largest buyer base for Maine real estate. While that is still the case, the COVID-19 pandemic has greatly altered the playing field for all buyers, but even more so for Maine and Massachusetts residents. It should also come as no surprise that buyers from Massachusetts have, for many years, had a strong influence on the supply and demand equation for out-of-state buyers. Unlike most others, Massachusetts buyers do not come to Maine for the weather, as they experience substantially similar weather given their geographic proximity. The reason they are attracted to Maine is to escape the crowded local streets, beaches, and parks for Maine’s abundance of unmatched natural beauty and easy access to the ocean, lakes, mountains, great restaurants, and more. The pandemic, remote work, and community safety are the three most often cited influences that have broadened and deepened the out-of-state buyer base.
In 2019, Maine residents successfully bought 74% of all homes available for sale, while Massachusetts buyers closed on 8% of sold homes. However, in 2021, Maine residents purchased a significantly fewer number of homes, dropping to 65% of total units, while Massachusetts accounted for a slight increase of 10% of statewide unit sales. The differences become more exaggerated when considering dollar volume sales. In 2021, Maine buyers represented 56% of all dollars spent on Maine homes sold at all prices. The shift becomes even more dramatic as the sales price rises, with Mainers accounting for only 28% of luxury home buyers.
The top feeder markets for Maine have stayed the same for several years and consist of Massachusetts, New Hampshire, Florida, New York, California, Connecticut, Pennsylvania, New Jersey, Texas, and the Metro Washington DC area, which includes the Maryland and Virginia suburbs. However, the pandemic has affected the geographic mix of Maine’s real estate buyer base, resulting in dramatic participation changes.
Read the rest of his analysis and explore our Maine homes for sale here.
