It is undeniable; the US housing market had a dynamic year in 2021.
Investors have had the opportunity to come across incredibly low-interest rates – and the demand for single-family homes and rentals has definitely skyrocketed.
Now, since we’ve stepped into 2022, and things are still somewhat fresh, it would be helpful to pause and really think about what to expect from this year – in real estate terms, that is.
That’s why today, we’ll be taking the time to focus on the Maine housing market.
- Is investing in the Maine real estate market a smart move?
- What are some of the best cities to invest in?
- What investment strategy should you be using?
We’ll be giving you a complete report on Maine Housing Market Forecast 2022.
Maine Real Estate Market Trends For 2022 – Crash Or Blast?
The housing market in Maine is not going to pause anytime soon. According to local realtors, Maine is going to remain competitive in 2022.
How competitive exactly?
Not too much – but investors are likely to see a rise in the price and value of homes.
That is because, in 2021, the percentage of sold homes experienced a small drop of roughly 3%. However, the median prices were up by 13%.
It’s not a small number if you think about it.
Realtors call it “the new normal.“
The number of properties on the housing market is slowly dropping, and places for investment are becoming increasingly difficult to find – the affordable and profitable ones, to be exact.
And because of the lack of space for investment in certain parts, the prices are not going down anytime soon. That is a caution sign for investors that have set out to buy a property and make a return on investment.
Let’s not rush it, though. We’ve still got a few factors to run by before you get your hands on a Maine property!
What Are Homes Maine’s Most Profitable Trend?
Maine property values are blooming – and part of this was due to the pandemic.
Of course, COVID-19 has shaped the housing market into a whole new edition, and while this has slowed business and shattered hopes for some, things seem to be looking up for Maine Housing Market Forecast 2022.
According to statistics, the median price rose by an excellent 13%, as we already mentioned. Furthermore, almost twice as many homes have been occupied over the past year, and keys have been exchanged between investors and sellers.
A huge number of families want a quiet place to settle down, and Maine seems to be a great place to do so.
The real reason the Maine market has become competitive in such a short period is its living conditions. There’s no doubt about it; Maine is a great place to live in:
The costs are not as high as some other cities, and it’s known as a kindhearted community.
Moreover, it’s a safe place. The crime rate here’s low, and this completes our prediction that single-family homes are currently the main attraction.
You don’t have to focus on just single-family homes in Maine, though. You can also invest in rentals.
Maine is far from dangerous – and weather hazards are almost unknown in this area.
We think that we’re giving some pretty valid points as to why you should invest in Maine and focus on the Main Housing Market Forecast 2022.
To make you see the bigger picture and help make a faster decision, take a minute to check out our Mashvisor Property Finder. It’s an extremely easy-to-use tool that helps potential investors pin down the area that seems the most attractive and take a closer look at what it has to offer. So, forget about the endless scrolling – this will help you find the best place according to YOUR preferences.
What To Expect? Maine Housing Market Forecast 2022
Statistically speaking, here’s what you can expect from Maine real estate market in 2022.
- Average home value in Maine: $326,024
- Median sale price: $304,000
- Available homes on the market: 2,723
- 30-year mortgage rate: 3.14%
Here are some additional guidelines for potential investors:
- Home values increase by 0.67% every month
- Homes stay on the market for 57 days
- The average income is $46,469
These were the most important stats you should be looking at if you’re serious about your decision to invest in Maine.
Now that you’ve seen the average and median price, let’s tackle some frequent questions that investors MUST be thinking about regarding the Maine Housing Market 2022.
Tax Obligations In Maine – How To Cope?
Another thing that is subject to constant change on the housing market – and cannot pass without mentioning here – are taxes.
So, if you’re considering buying and/or investing in Maine property, you’ll need to familiarize yourself with your tax obligations.
The indeed confusing web of taxes is something everyone would like to avoid. However, it doesn’t work that way. Investors need to familiarize themselves with local requirements for tax gains, property taxes, and capital tax gains.
To put it simply, and for everyone to understand, if your capital gain (not your rental income) ranges between $250,000 and $500,000, the IRS will most likely have to tax you. However, if your gain is lower than $250,000, you’ll be free of federal tax liability.
While some states do not impose a transfer tax, Maine does, and it’s calculated to be $2.20- $500.
Real Estate Commissions – Worth it?
Now, let’s reflect on the real estate commission concerning the Maine Housing Market Forecast 2022.
As we said, the average price is $324,000. So, if you decide to invest, you will be looking at roughly $17,900 in realtor fees.
And who pays these fees?
In Maine, home sellers usually pay commission fees for both agents.
Negotiating a favorable commission fee depends on the housing market, though, because:
- The homes are selling quickly
- Fewer homes on the market that are listed for sale
- Home values are rising
What Type Of Market is Maine in 2022?
Currently, the Maine housing market is a seller’s market because the properties listed for sale are staying longer than average on the market – and the house prices are constantly going up.
However, each area in Maine has different trends and prospects, and that’s exactly what we’ll be looking into right now.
Top Markets To Invest in Maine in 2022
Let’s take a moment to be more specific and talk about the particular areas to keep an eye on if you’d like to invest in Maine. Of the possible places, we’ve singled out:
Now, let’s look into the best real estate investment strategy for each of them, shall we?
Currently, the area of Brunswick has:
- 290 properties for rent
- 152 properties for sale
The town of Brunswick had 20,517 inhabitants. The lifestyle here is suitable for families that are just starting out because their public schools are highly rated. It’s a sparse suburban area, and most residents here actually own their homes.
Understanding the economic situation of Brunswick is a critical factor in determining whether it’s worth investigating or not. And for this area, it’s definitely a “Yes” because of its prospects in farming, mining, and fishing.
Current Brunswick Investment Statistics:
- Median property price: $385,573
- Traditional rental income: $4,141
- Cash-on-Cash Return: 5.84%
- Housing Market 2022 Forecast: Prosperous for commercial and real estate investing
And of course, just like every other location that experienced a minor setback at the start of the pandemic, the increase in demand showed that Brunswick still got away with it.
Next on the list is Westbrook with:
- 20 properties available for rent
- 15 properties for available for sale
As you can tell from these stats, the Westbrook area is a bit tighter in terms of availability – but that doesn’t make it any less valuable.
For starters, rents in Brunswick average at around $600. Furthermore, the typical home value in Westbrook is almost identical to the average price, and interested investors can expect a cost of about $364,333.
Westbrook recorded perhaps the most significant increase in home values over the past year. By 2021, homes in Westbrook have jumped by almost 19%.
Current Westbrook Investment Statistics:
- Median property price: $263,321
- Traditional rental income: $6,092
- Cash-on-Cash-Return: 3.37%
- Housing Market 2022 Forecast: House prices rising
In Orono, the situation is as follows:
- 20 homes for sale
- 30 rentals available
Unlike the previous two areas – which might be suitable for families that are just starting out – Orono is a vibrant college town full of possibilities for younger residents.
Here, you can look forward to investing in condos and apartments because they are always in high demand – again, because of the students in the area.
Of course, when investing, you should pay attention to general living costs and adjust so that it is budget-friendly for the students and to ensure yourself a secure return on investment.
Current Orono Investment Statistics:
- Median property price: $179,000
- Traditional rental income: $2,373
- Cash-on-Cash-Return: 3.94%
- Housing Market 2022 Forecast: Expected high demand for apartments
Now, for the current real estate market situation in Windham:
- 51 homes are available for sale and rent
Windham is another suitable area for investing because of its higher median income. Even though it’s not situated around a local college and doesn’t quite scream “youth,” it’s still a favorable investment for commercial properties.
The best investment strategy for potential investors looking to buy a property in Windham, Maine, is to renovate the property – and flip it for a good profit.
Current Windham Investment Statistics:
- Median property price: $316,013
- Traditional rental income: $3,980
- Cash-on-Cash-Return: 1.94%
- Housing Market 2022 Forecast: An expected rise in median income
The last on the list would be Kennebunk, and the current real estate situation here is:
- 26 homes for sale
- 180 apartments for rental
And we’re back to a quieter area. Kennebunk, just like Brunswick, attracts young families that want to settle down and live a peaceful life near a coastal area.
It’s no coincidence that we mentioned such a large number of apartments available for rent. During the warmer months, families love to come to Kennebunk and enjoy the many water activities this coastal town offers.
So, short-term rentals are a hit here.
Current Kennebunk Investment Statistics:
- Median property price: $194,808
- Traditional rental income: $4,355
- Cash-on-Cash-Return: 5.33%
- Housing Market 2022 Forecast: Increase in short-term rentals
Real Estate Investing Considerations
As we near the end of this guide, we feel it would be helpful to go through some real estate investment considerations that should be common knowledge and apply to all areas, not just Maine.
Here are the factors real estate investors should be considering before making any kind of investment:
- Return on investment through rent
- Lower and manageable risk
- Reduced tax liability
- Traditional rental income
- The current situation in the rental market
We have gone through a good portion of these factors throughout this article – and we have even mentioned the tax obligations that you may face if you want to invest in Maine.
Of course, the factor that has a share in all the others and represents the strongest link is the current situation of the rental market. So, before you decide which one to invest in, it would be wise to research it thoroughly first.
You’ve had the opportunity to see how fast the market can change – and how it managed to change prices and rental income, especially during the unprecedented times we live in right now.
Again, Mashvisor’s Property Finder can help you shorten the search and make your job a lot easier by finding the property that fits both your personal and financial needs.
Why Invest In Maine?
So far, we’ve described the Housing Market Forecast 2022 for Maine in detail, and as we near the end, let’s try to round out this extensive topic by giving you specific reasons why you should invest here.
Good Economic Situation
First, we’ll be touching on the economic situation in accordance with the Maine Housing Market Forecast 2022 and how it will affect the investors.
We mentioned at the beginning that Maine has a favorable economic situation. For example, Brunswick is above average with its advantages in mining and fishing.
A favorable economic situation brings about several notable advantages to the buyers and investors in Maine. It enables a fixed profit for both sides and makes it easier to afford the property.
Due to its favorable geographical position and coastal area, Maine has become one of the desirable tourist attractions in the past few years.
More families are opting for a summer vacation in Maine. Every year, the influx of tourists increases by 2.5%, which will represent a significant 12.5% growth over the course of five years.
That certainly positively affects the rental income that investors might expect during warmer seasons, for example.
Popular Retirement Destination
In addition to attracting many young families to Maine, a certain percentage of people still consider Maine to be a popular retirement destination.
Because of the affordable living costs and low crime rate.
People generally feel safe in this area and will have no problem investing in property where they’d like to spend their retirement years without having to worry about some major issues other cities and areas carry.
The quietness and relaxing atmosphere play a significant role in Maine Housing Market Forecast 2022.
Affordable Entry Prices
First-time investors shouldn’t have a problem investing in Maine.
Compared to New York, the average price of homes barely exceeds $ 336,000, which is not that high of a risk if you think about it.
If you follow the guidelines we laid out, you can make a good profit – and make a good return on your possible investments.
Another reason to invest here is the fact that Maine supports some key industries, such as:
- Healthcare facilities (Maine Medical Center)
- Household units (in Portland)
- Single-family homes (value increased by $2,000)
So, you don’t just have to base it on investing in homes; you can also look at rentals – which will also give you a good profit.
Of course, before you do that, you should inspect the market and figure out in which area, in particular, you should invest.
We’ve successfully covered the topic of Maine Housing Market 2022. A lot has been said, so let’s just take a moment to get through the most critical points.
The housing market in Maine will continue to be competitive in 2022. Although the numbers of homes and rentals available won’t rise, the Main real estate prices and home values will. That’s nothing out of the ordinary when you consider the current trends.
The realtors are referring to it as the “new normal.”
If you’re looking to sum up the forecast in a few words, here are the numbers to keep in mind:
- Average home value in Maine: $326,024
- Median sale price: $304,000
- Available homes on the market: 2,723
- 30-year mortgage rate: 3.14%
The best areas to invest in Maine include Westbrook, Brunswick, Windham, Orono, and Kennebunk. Maine is flourishing in economic terms and offers affordable entry prices and rental possibilities for future investors.
However, finding the perfect property won’t necessarily be easy for potential investors.
Here at Mashvisor, we’re doing our best to help you investors accomplish their goals and achieve the desired profit. Don’t be a stranger – and contact us for more information!