As stated last month in Anthony’s Predictions for 2025, “2024 will go down in history as the bottom of this down cycle.” Though we did see year over year increases in all categories, they were nominal where we prefer to see larger numbers.
Overall, the 2024 Maine real estate market showed strong performance, marked by rising prices and increased activity, reflecting a healthy and dynamic housing environment.
Many sellers were hesitant to list their properties due to low pre-pandemic mortgage rates, but increased market activity emerged out of necessity and life changes, making competitive pricing essential. Buyers, despite affordability challenges posed by rising rates, inflation and rising home prices, remained determined. A rebound is anticipated in 2025. Despite higher costs, homeownership continued to be sought after due to fixed payments, equity growth, and potential tax benefits, underscoring its long-term value over renting.
This report breaks down sales, average prices, the number of active listings, and how many listings went under contract for 2024 compared to 2023 and discusses what is predicted to unfold in 2024.
Maine Sales Rise by 4.9%
Sales in Maine increased from 16,445 in 2023 and came in at 17,257 at the end of 2024– just a little over 800 more sales year over year. Buyers are slowly adapting to current interest rates, as major changes in affordability aren’t expected in the near future. Those facing life changes moved forward with their purchases, while many buyers who had been waiting for a market shift grew impatient and chose to take action.
Sales were up in two out of three categories:
- Single family sales up by 4.8%: 14,432 in 2024 from 13,774 in 2023
- Condo sales up by 9.1%: 1,884 in 2024 from 1,727 in 2023
- Multi-family down by 0.3%: 941 in 2024 from 944 in 2023
Below is a graph that illustrates home sales per year since 2000. After a few years of steep declines, 2024 increased slightly over 2023.
Monthly sales were up ten out of the twelve months over 2023 resulting in the overall increase. The late summer exhibited a lot of activity as well as December which usually calms down over the holidays.
Average Prices Increase 8.3%
Prices in 2024 increased over 2023 by $38,300 with 2024 at $500,625 compared to $462,352 in 2023. Although affordability remains a challenge, prices keep rising due to limited inventory, which intensifies competition among motivated buyers, often leading to multiple offers and higher sales prices.
Prices increased in all three categories:
- Single family prices increased by 9.5%: $496,435 in 2024 from $453,542 in 2023
- Condo prices increased by 7.4%: $515,478 in 2024 from $479,821 in 2023
- Multi-family prices increased by 8.4%: $482,086 in 2024 from $444,828 in 2023
The bar chart below shows that 2024 saw the highest average home prices since 2000—and in fact, the highest ever recorded. With inventory staying limited and buyers continuing to compete for available properties, prices are expected to remain stable, though the rate of increase may slow down in 2025.
In 2024, monthly prices consistently surpassed those of 2023. The growth since Covid is especially noticeable when comparing the 2020 green line to the 2024 purple line, highlighting the substantial price increases over time.
Average prices increased across all Maine counties in 2024 except two with nominal decreases of not even half a percent. With gains ranging from 2.9% to 24.8% it’s clear that demand is reaching throughout all of Maine. Notably, the significant growth in most counties suggests a trend of people moving further from coastal and city centers.
2024 Listings Rise for the First Time in Two Years
After two years of significant declines in home listings, including a record low in 2023 since 1994, 2024 saw a 10% increase in new listings. Many sellers, hesitant to part with their pandemic-era mortgage rates, had kept inventory tight, leaving buyers with limited options. However, as circumstances changed, many sellers decided it was time to move on, leading to a noticeable rise in listings. Although 22,634 is a welcome increase, the number of homes listed in 2024 still fall short of the typical pre pandemic annual range of around 25,000 – 30,000. This upward trend indicates that 2025 could continue to bring more inventory and a wider selection for buyers.
Pending Sales Increased by 3.4%
In 2023, pending sales were at their lowest since 2011, primarily due to limited supply rather than weak demand. However, 2024 saw a 3.4% increase in pending sales, which helped drive up the number of closed sales. By the end of 2024, there were 17,139 pending sales, compared to 16,570 in the previous year.
Maine Housing Inventory is Exhibited a Strong Increase
Maine housing inventory in 2024, depicted by the purple line, increased to levels above 2023 as well was 2022 and by the end of the year climbed to a level not seen since 2020. This was a huge improvement for buyers and the selection they have been starved for. It’s very striking to compare the past few years to pre-2020 inventory levels. In contrast, recent years have seen drastically lower levels, so the ascent in 2024 was a very positive change.
Will the 2025 Real Estate Market Improve?
In 2025, Maine’s real estate market is anticipated to see moderate growth, with home prices rising at a slower rate than in previous years. The National Association of REALTORS® projects a 2% nationwide increase in home prices.
Stabilizing mortgage rates, likely around 6%, and an increase in housing inventory are expected to provide more opportunities for buyers, especially those who have faced intense competition in recent years. Active buyers will need to stay proactive and well-prepared to move quickly when they find the right property. However, affordability challenges will likely continue due to the state’s high property values and elevated cost of living.
The rental market is also expected to remain expensive, as demand for rental properties exceeds supply, offering little relief for renters. For sellers, the market is expected to stay strong but more balanced, with realistic pricing necessary to attract buyers in a less competitive environment. Overall, Maine’s housing market is expected to stabilize, fostering a healthier balance between supply and demand, and setting the stage for more sustainable growth. As Anthony stated in his 2025 Predictions, “I believe 2025 will mark the beginning of this recovery, with 2026 poised to be a historic year for the industry as sales normalize.”