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Southern Maine Housing Market Update – March 18, 2025
Spring is officially here, and the Southern Maine housing market is waking up from its winter slumber. If you’re a buyer or seller, it’s time to pay attention—things are shifting quickly, and opportunities are emerging.
Inventory is Tight, but New Listings Are Coming
The number of available homes remains low, especially in desirable coastal towns like Scarborough, Cape Elizabeth, and Kennebunkport. However, as we move deeper into March, we’re starting to see more sellers listing their properties. Many homeowners who delayed selling during the colder months are now testing the market, hoping to take advantage of strong buyer demand.
Mortgage Rates & Buyer Demand
Interest rates remain a critical factor in the market. While they’ve come down slightly from last fall’s highs, they are still hovering around 6.5-7%. This has made affordability a challenge, but serious buyers are still actively searching, especially in the $350,000–$600,000 price range. Multiple-offer scenarios are still common for well-priced properties, particularly those in good condition and desirable locations.
Investors Are Watching Closely
The rental market remains strong, and with limited housing stock, investors are keeping an eye on multi-family opportunities. However, high interest rates mean cash flow can be tight, and many investors are waiting for the right deal. Sellers of investment properties may need to be realistic with pricing if they want to attract serious buyers.
What This Means for Sellers
If you’ve been on the fence about selling, this is a good time to prepare. Homes that are move-in ready and priced competitively are still selling quickly. Pricing too high, however, can result in a longer time on the market. Staging and minor updates can go a long way in attracting buyers who are willing to pay top dollar.
What This Means for Buyers
It’s still a competitive market, but buyers who are pre-approved and ready to act quickly will have an advantage. Don’t wait too long to make a move on a property you love, but also be mindful of your budget—bidding wars can push prices higher than expected. If interest rates drop later this year, refinancing could be an option to lower long-term costs.
Looking Ahead
Expect the market to gain momentum as we head into April. More listings will likely hit the market, and buyers who’ve been waiting on the sidelines may jump back in. Keeping an eye on interest rate trends and being prepared to act quickly will be key for both buyers and sellers in the weeks ahead.
If you’re thinking about buying or selling in Southern Maine, now is the time to start planning. Reach out to discuss strategies to navigate today’s market!
All the best in real estate endeavors –
Scott
207-413-1237
