Southern Maine Real Estate: May Market Update & Insights

As we step into the heart of spring, the Southern Maine real estate market is entering one of its most active periods of the year. Whether you’re looking to buy, sell, or invest, May offers opportunities — but also challenges — that are worth watching closely.

What We’re Seeing This Month

1. Inventory is inching up — but still tight:
Compared to the winter lull, May has brought a slight increase in new listings, especially in towns like Scarborough, Saco, and Biddeford. However, inventory remains historically low, which continues to support strong pricing, particularly for move-in ready homes and properties with in-law units or ADUs.

2. Buyers are adjusting to the “new normal” rates:
With mortgage rates hovering between 6.5% and 7%, buyers are becoming more rate-savvy. Some are choosing adjustable-rate mortgages (ARMs), while others are focusing on homes that need light renovations in order to gain equity faster.

3. Coastal properties are heating up:
Demand for homes in walkable seaside communities — like Kennebunkport, Cape Elizabeth, and parts of South Portland — is rising as summer approaches. Out-of-state interest remains high, especially from buyers in Massachusetts, New York, and southern New Hampshire.

Local Insight: Southern Maine’s Rental Market

We’re also seeing sustained pressure in the rental market. For investors or homeowners considering accessory dwelling units, this could be the perfect time to explore adding a unit or converting a garage. Towns are increasingly supportive of ADUs as a way to address the housing crunch.

May Tip for Sellers

If you’re planning to list this summer, now is the time to prep. Minor improvements like fresh paint, landscaping, and decluttering can lead to big returns. Homes that “feel ready” go under contract faster and attract more competitive offers.

Thinking about your next move?
Whether you’re navigating your first home purchase, evaluating an investment, or considering selling in this tight market, I’m here to help with grounded advice and deep local expertise.

Let’s talk real estate in Southern Maine — I’m always just a message away.