BANGOR, Maine — The price and number of homes sold in Maine is increasing, according to the Maine Association of Realtors.
Recently released data from the group shows the number of single-family homes sold in March reached 888, an increase of 3.5 percent from the same time last year. This, along with February’s numbers, reverses a more than two-year decline in real estate transactions, according to the Maine Association of Realtors.
But as demand grows, so does price. The median home in Maine cost $380,000 in March of this year, an increase of 12.5 percent from March of 2023. Some realtors think this appetite to buy real estate and pay a higher price for it is the result of buyers growing accustomed to higher mortgage borrowing rates.
"I think it took a little bit of time to absorb that this is the reality with higher interest rates," Christopher Rowell, a Bangor-based realtor, said Tuesday.
While sellers are benefiting from high prices born from a limited housing stock, first-time and low-income buyers are often faced with a higher barrier to entry as a result.
As another Bangor Realtor, Tyne Kenny, explained, "I feel like it's partially our responsibility to help our buyers navigate that problem."
But with little give in the housing market, efforts are emerging to change the formula and drive down home prices by increasing stock.
At the municipal level, cities like Bangor are looking to loosen zoning restrictions to allow for greater housing density.
"We need to be creating more affordable units, but we also need to be creating more units in general," Anne Krieg, the director of community and economic development for the city of Bangor said Tuesday.