Trends in Southern Maine

Southern Maine Estate Series: Fresh Trends & Market Shifts in 2025

Southern Maine’s real estate market is making moves in 2025, with new buyer habits, evolving investment opportunities, and a shifting landscape of demand. Whether you’re eyeing a coastal retreat, a multifamily investment, or looking to sell in a competitive market, here’s what you need to know right now.

1. Home Prices Stay Resilient—But Buyers Are More Selective

Property values remain strong, but the days of automatic bidding wars are fading. Buyers are becoming more strategic, favoring homes that offer move-in-ready appeal, energy-efficient features, and smart-home technology. Scarborough, Cape Elizabeth, and Kennebunkport continue to see high demand, though buyers are taking their time to make well-informed decisions.

2. Interest Rates Stabilize—Creating a ‘New Normal’

With mortgage rates steadying in the 6-7% range, buyers and sellers alike are adjusting their expectations. Instead of racing to lock in low rates, buyers are focusing on affordability, while sellers are getting creative with incentives, such as rate buydowns and closing cost assistance, to attract offers.

3. High-End & Waterfront Homes Still in Demand—With a Twist

Luxury properties along the coast remain highly sought-after, but buyers are looking for more than just location. Homes with updated kitchens, spa-like bathrooms, and eco-conscious upgrades like solar panels and heat pumps are commanding top dollar. Historic charm is still a draw, but properties in need of major renovations are taking longer to move.

4. Multifamily Investments Remain Strong, but Regulation Awareness Is Key

The rental market continues to perform well, particularly in Portland, Biddeford, and South Portland. Investors are targeting well-maintained multifamily properties, but new and changing short-term rental regulations are making it crucial for buyers to do their homework before jumping into the vacation rental market.

5. Energy Efficiency & Sustainability Are Now Must-Haves

Buyers aren’t just interested in granite countertops anymore—they want homes that help lower utility bills and carbon footprints. Energy-efficient upgrades like solar panels, modern insulation, and smart heating systems are becoming key selling points, with new construction leading the charge in sustainability.

What’s Ahead?

Southern Maine’s real estate market remains dynamic, with demand staying steady and pricing expected to see modest growth through the year. For sellers, strategic pricing and home preparation will be key. For buyers, patience and preparation will pay off in securing the right property at the right price.

Stay connected for more updates on the Southern Maine estate market, and reach out if you want to chat about your next move!

Text Scott at 207-413-1237