This month, every category we monitor saw an increase, but the standout performer was York County, which experienced a remarkable 44% jump in new listings compared to July 2024. This marks the fourth straight month where both York and Cumberland Counties have reported year-over-year increases in new listings.
While the rise in sold listings lagged behind the surge in new listings, it's important to remember that the sales cycle often extends beyond 30 days, especially for financed purchases. We should see sold listings increase this month as these new listings close. With the significant increase in new listings, buyers could finally see some relief after years of struggling with low inventory (note that relief could come in the form of lower increases in sales price, and not necessarily a decrease in price).
While the rise in sold listings lagged behind the surge in new listings, it's important to remember that the sales cycle often extends beyond 30 days, especially for financed purchases. We should see sold listings increase this month as these new listings close. With the significant increase in new listings, buyers could finally see some relief after years of struggling with low inventory (note that relief could come in the form of lower increases in sales price, and not necessarily a decrease in price).
Despite the increase in inventory, home prices continue to rise by around 10% year-over-year in both counties. As we discussed last month, even with more homes hitting the market, the well-known MaineHousing study estimates that Maine needs to build about 1,000 new homes each month to address the ongoing housing shortage.
Interest rates have crept downward a bit over the past couple of weeks as well, giving buyers more buying power. Due to the supply-demand imbalance, we anticipate this will drive prices up further in the long run, though some buyers may be able to snag a deal if their competition isn't actively monitoring rates and purchase power.
While the increase in new listings is a positive sign, the persistent supply-demand imbalance suggests that inventory challenges and rising prices are likely to continue for the foreseeable future.
Interest rates have crept downward a bit over the past couple of weeks as well, giving buyers more buying power. Due to the supply-demand imbalance, we anticipate this will drive prices up further in the long run, though some buyers may be able to snag a deal if their competition isn't actively monitoring rates and purchase power.
While the increase in new listings is a positive sign, the persistent supply-demand imbalance suggests that inventory challenges and rising prices are likely to continue for the foreseeable future.
