Is Now the Right Time to Buy a Home in Maine?

Thinking about buying a home in Maine? Let's break down the current market so you can make an informed decision.

Maine's real estate market hasn't really slowed down a lot. Yes, homes have been staying on the market a bit longer, but it hasn't seemed to lower the all-around price of homes in Maine. In fact, according to The Portland Press Herald, in January 2025, the median home price jumped nearly 10% to $390,350 compared to the same period last year. They also stated that some areas, like Cumberland County, are even seeing median prices around $555,000.

Interest Rates

Mortgage rates have been a bit of a rollercoaster. As of this month, according to Freddie Mac, we saw the largest decline in interest rates since mid-September and are currently at 6.63% for a 30-year fixed-rate mortgage. While rates have stabilized for the most part, they're still higher than what we've seen in recent years.

Inventory

Good news here though: According to Houzeo, inventory is up 40.2%. More homes on the market means more choices for buyers. However, with increased demand, some areas are still seeing competitive bidding.

Possible Recession

Another factor to consider is the possibility of an upcoming recession. Some economists are predicting economic slowdowns, which could impact job stability and borrowing power. While recessions often lead to lower interest rates, they can also bring uncertainty to the housing market. If you're considering buying, it's a good idea to evaluate your financial security before making a decision.

Should You Buy Now?

If you're a first-time homebuyer or looking for a starter home, the rising prices might make it challenging. However, with more inventory available, you might find a property that fits your needs. Just be prepared for potentially higher monthly payments due to the current interest rates.

In Summary

Maine's real estate market is active. As a realtor, I always tell my buyers if you're financially ready and have a solid plan, it could be a great time to start building some equity. If you're on the fence and the numbers are a little tight, it might be worth waiting for a bit more stability. If you're hoping this will be your year to get into your own home, feel free to reach out to me here. I'm happy to help answer any questions and help get you where you need to be.