Maine Monthly Market Update
January 2025
Inventory on the Rise, But Still Below Pre-Pandemic Levels
Maine’s housing market continues to see a gradual increase in inventory, with months of inventory rising to 3.33 in January 2025 (rolling average from November 2024 to January 2025), up from 2.95 in January 2024 (rolling average from November 2023 to January 2024). This marks the third year in a row that inventory has inched up after hitting a low of 1.57 months in early 2022, when supply was extremely limited, and sellers had the upper hand.
Even with this increase, inventory is still well below the 5.02 months recorded in January 2020, showing that supply remains tight by historical standards. More listings on the market mean buyers have a bit more choice than in recent years, but conditions are still far from balanced. In high-demand areas, competition remains strong, and homes continue to move quickly despite the rising availability.
Tying into the overall inventory trend, the number of active listings across Maine has also increased significantly compared to last year. Statewide, active listings are up 123.92%, rising from 3,533 in early 2024 to 4,378 in early 2025. While this is a notable jump, the market is still well below pre-pandemic levels—back in early 2020, there were 7,814 active listings across the state.
Is Increased Inventory Affecting Pricing?
As Maine’s housing inventory continues to rise, home prices are still increasing, but at a more measured pace compared to the rapid appreciation seen in prior years. The statewide median sale price rose to $376,667 (rolling average from Nov. 2024 – Jan. 2025), up 10.46% from the same period last year. While this growth remains significant, it’s a slower rate of appreciation than the extreme price surges seen in 2021 and 2022.
Some of the biggest price gains were in Bangor ($282,500, rolling average from Nov. 2024 – Jan. 2025, up 19.37%), Sagadahoc County ($399,583, up 17.73%), and Penobscot County ($270,842, up 17.47%), all of which saw double-digit increases over last year. In contrast, Oxford County saw a slight decline ($281,583, down 0.71%), indicating that some areas may be adjusting more quickly as inventory expands. The highest-priced markets, such as Cumberland County ($532,825, up 3.97%) and Portland ($549,442, up 2.73%), are still seeing price increases but at a more moderate pace, suggesting that rising inventory is helping to slow down runaway price growth.
Are Homes Sitting Longer on the Market?
At the same time, homes are taking longer to sell across much of the state. The statewide median days on market (DOM) increased to 24 days (rolling average from Nov. 2024 – Jan. 2025), up 35.19% from the same period last year, reflecting a shift from the frenzied pace of the past few years. Several areas have seen even larger jumps in market time:
Portland’s median DOM rose to 22 days (rolling average from Nov. 2024 – Jan. 2025), up 212.90% from 10 days last year.
Knox County’s median DOM increased to 52 days, up 190.24% from 27 days last year.
Somerset County’s median DOM nearly doubled to 39 days, up 198.31% from the same period last year.
While homes are still selling at a historically quick pace compared to pre-pandemic years, buyers now have more time to make decisions, and sellers may need to adjust expectations accordingly.
Overall, while home prices remain on an upward trend, the rate of increase is slowing, and homes are taking longer to sell. Rising inventory is shifting the market toward a more balanced environment, reducing the urgency for buyers while giving them more options than in previous years.
Price Reductions During Listings: Are More Sellers Adjusting Prices?
As inventory rises, price reductions during listing have become more common across Maine. From November 2024 to January 2025, 37% of homes statewide had a price reduction before selling, up from 33% in the same time period in 2024. This marks the highest percentage of reductions since 2020 when 40% of sellers adjusted their prices.
Overall, Maine’s housing market continues to shift as inventory levels rise, homes take longer to sell, and price reductions become more common. While the number of active listings and months of inventory have increased, they remain below pre-pandemic levels, keeping competition in certain areas steady. Median sale prices are still climbing, suggesting that demand persists despite the changing market conditions. However, longer days on market and an uptick in price reductions indicate that sellers may need to adjust expectations, particularly in counties where reductions are becoming more frequent. As we move further into 2025, it will be important to watch whether these trends continue, especially as buyers gain more options and sellers respond to shifting dynamics.