Real Estate Sales Update
April Results Continue Strong Trend
The infographic above, which we prepare each month, is designed to provide a quick snapshot of the Cumberland County real estate market. Through April of this year, sales of single family homes continue strong, as unit sales and median prices are up while the days to sell a property (DOM) are down. Similarly, condo sales and prices are also up over 2015.
April represented the sixth consecutive month where sales exceeded results from the prior year. In fact, sales are up 15 out of the last 16 months, with October being the only exception. Sales are up in virtually all price segments, although homes priced below $300,000 are demonstrating the strongest growth year over year in each month of 2016.
The graph below includes sales results for Maine, Cumberland County and selected southern Maine communities. In many ways the numbers speak for themselves – many towns are continuing to see strong sales over the first four months of 2016. Many towns have established record sales, eclipsing records set last year. While this is not true in all towns, as the figures indicate, there is a consistent trend.
As reported in previous newsletters, pricing fluctuations have a tendency to confuse what is happening in the market. YTD decreases in several local towns are not necessarily indicative of market dynamics on the ground. Buyers today are acutely aware of the shortage of homes available for sale yet are not prepared to offer inflated prices on properties. In many situations, double negotiations are occurring – once when a property goes under contract and again when contingencies are being sorted out. Buyers, in their own way, are determined to not overpay for any specific property – yet “market ready” priced homes are going under contract quickly.
Looking at prices in the broadest of terms, either on a county or statewide basis, provides the best indication of what prices are actually doing.
Inventory critically low
As it has been for the last several months, available inventory is low. Homes in Cumberland County under contract in April represented 62% of all inventory, compared to 52% in March. During the market crash this statistic was below 20%. The inventory of higher priced homes is more competitive and buyers have more choices, leading to a longer time on market and more price pressure. For homes priced above $500,000, the pending ration is 28% - a considerable difference.
MaineHomeConnection.com updated each month with the latest sales statistics. You can access this information by town at Local Communities, or try our Interactive Sales Chart. If you don't see what you are looking for, we can prepare a custom report for you.