3 Signs Buyer Relief is on the Horizon

It’s no secret that it’s a seller’s market. According to the Maine Real Estate Information System’s (MLS) June Housing Report realtors across the state are continuing to see listings sell at a breakneck speed, often receiving multiple offers. In fact, in June homes were on the market for an average of 6 days. When compared to an average of 14 days a year ago and 13 days in 2019 it’s clear to see the advantage.

Maine has seen a 24.5% increase in the median sales price of single-family homes in the past year according to mainelistings.com. In York County that increase spells a nearly $100,000 increase in the median sales price. 

All of this has frustrated buyers asking, “What is going on?”

Experts attribute this phenomenon largely to record low inventory of available properties. “Beginning in June of 2020, single-family for-sale inventory declined monthly for nine consecutive months,” Aaron Bolster, Broker/ Owner of Allied Realty in Skowhegan and 2021 President of the Maine Association of Realtors stated. That 9-month decline culminated in March of 2021 where the number of new homes on the market reached its lowest point. 

So where is the relief of which I speak? Check out these 3 optimistic trends! 

1. The number of homes hitting the Maine real estate market increased for the third straight month, hopefully spelling relief for buyers. According to Bolster the listing of single-family homes increased by 18.5% over May and 55% over March 2021. “An increase in for-sale inventory should bring a better balance to Maine’s real estate market over time.” Bolster continued. 

2. A survey of home-showing numbers in past months shows a decline. According to the National Association of Realtors, the number of home showings in April was up 105% over April 2020. May showings were up 24% over May 2020. But, June 2021 showings were down 1% over June 2020. 

3. On July 22, 2021 mortgage finance provider Freddie Mac reported that interest rates for a 30 year fixed rate mortgage dropped from 2.88% to 2.78% spelling long-term savings for home buyers. 

What does all of this mean for buyers? A slowing in the number of property showings could spell an easing in the competition for available homes. Without multiple offers creating the dreaded “bidding war” the median price for single-family homes should even out. These results combined with an increase in the number of homes on the market should spell relief for buyers.