Portland Maine 2015 Year End Real Estate Report
The Portland Maine 2015 real estate market has officially ended- with a bang! Overall, single-family home sales in Maine are up 22.5% compared to a year ago. The median home price also rose 4.35% to $180,000, this means that half of all homes sold this past year were below $180,000 and the rest were above. Some will say that pent up demand played a big part and others say the threat of rising interest rates helped buyers act quicker. Either way, buyers are out there and homes are selling, often within a few percent of the asking price, if not more. This tells me that sellers are being practical with pricing and buyers are seeing the value.
There was a total of 916 single family homes sold in Portland and South Portland this past year compared to 893 in 2014. The average list price was $293,894, up slightly from this time last year. The average sold price of $302,116, price per sq foot of $241,34, and sales/list price ratio of 98.26% are all up as well. The average days on market for these properties was 72. The upward movement, albeit minimal, is still upward movement across the board.
At the time of this writing there are 170 single-family homes listed for sale in Portland and South Portland. The spring market begins earlier these days and we should start to see a big uptick in the amount of listings around the end of January.
The Portland condo market also performed well with a total of 468 sold. The average list price was $307,254, sold price $302,116, and sales/list price ratio 98.26%. These numbers are up across the board from this time last year.
If you are considering putting your home on the market we should talk about the absorption rate, how to calculate it, and what it actually means to you the seller.
Calculating the absorption rate (how many homes sell in a month) will tell you how many months it could take to sell through the current inventory, here’s how we do it:
Determine how many homes sold within the past 12 months
Divide the amount of sold inventory by 12 months and that will tell you the absorption rate
Factor in the amount of active listings on the market
Divide the number of active listings by the monthly absorption rate and that will determine the number of months it will take to absorb all of the listed property currently for sale.
As mentioned earlier, 916 single-family homes sold in Portland & South Portland this past year. If we divide that by 12 months the absorption rate is 76 (homes sold per month). We then divide the current active inventory of 170 by 76 and arrive at 2.2 months. This means that based on these statistics it could take 2.2 months to sell through the entire current inventory. That’s a pretty low number and a sign that our market is strong! In order to have a chance to sell your home within the above time frame it has to be properly priced. Overpricing puts you in a much less favorable position and you’ll wind up chasing the market.
If you have any questions about this report or want help figuring out the absorption rate for your town please don’t hesitate to contact me, Christopher Pagli directly on 914.406.9023 or MyMaineAgent@gmail.com
***All data has been derived from the local MLS, analyzed and interpreted by me***