The Portland Maine third quarter was a strong one for real estate sales. Despite fewer homes having sold than the third quarter of 2015, the overall market is still very active and strong. There were 270 Portland and South Portland single family homes sales this quarter compared to 337 last year. The average list price increased from $293,838 to $310,775. The price per square foot increased slightly from $178.24 to $185.30.
This is where things get interesting.
The sales/list price ratio has been hovering around 100% for the past two years due to supply and demand. The ratio for the third quarter of 2016 totaled 100.12% compared to 99.15 this time last year. Buyers are willing to pay asking price and over, in a hot market because of the competitive playing field. The average sold price of $310,732 inched up from $290,314 in the third quarter of 2015. The average days on market of 29 (from list date to contract) decreased by four.
The current absorption rate (how many homes sold within a month) is determined by dividing the amount of sold properties within a specified period, in this case, 270 by 3 (months in the quarter) and get 90 homes sold per month. Lastly, divide the number of competing properties on the market of 155 by 90 and the rate is .5. Based on the data, this is how long it might take to sell through the inventory at the current pace. Very encouraging news for Portland home sellers!
At the time of this writing, there are 155 Portland and South Portland single family homes on the market. There are no signs of a slowing market, especially with mortgage rates averaging 3.47%.
If you would like to know the absorption rate in your area, please feel free to contact me directly at 207.805.6007 or email – MyMaineAgent@gmail.com