One of the state’s leading real estate agents sees a slowdown in Maine’s hot market

The beginning of the end of Maine’s hot real estate market may not have taken root in Augusta or Portland but in Washington, DC

Last week, the US Federal Reserve hiked interest rates to a 40-year high in a bid to fight inflation. Chairman Jerome Powell said Wednesday that Americans should expect more hikes.

Referring to the situation so far during the pandemic as the “extreme seller market,” Dava Davin, owner of Falmouth-based Portside Real Estate Group, one of the state’s largest real estate firms, said there were signs it was changing because of the Fed Relocation, high inflation, stock market declines and other factors.

“People’s purchasing power has changed, and maybe that’s giving them a little pause,” Davin said. “That sense of urgency isn’t there.”

Here are the key themes of the market that Davin touched on during a conversation with the Bangor Daily News.

supply drop

Davin said she sees homes continuing to sell very quickly, but now with fewer offers. While a Portland home had 20 offers a few months ago, she recently saw one that only received two. It still sold for $60,000 over the asking price.

“We’re seeing the signs of this slow shift,” she said.

Houses still go fast. A single-family home on Washington Avenue in Portland that sold for $510,000 this week was listed Monday and sold to a physician assistant at Maine Medical Center by Tuesday. Redfin recorded 107 single-family home sales Monday through Thursday in Maine as of Thursday afternoon. The median price was $345,000.

The most expensive was a $2.52 million four-bedroom home on Sprucehead Island in Thomaston, which sold 25 days after the listing. The cheapest: a three-bedroom house in Guilford for $50,000 after being on the market for more than 250 days.

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