The Median Home Price Is Up, So My Home Is Worth More...right?
Press releases have touted a steady rise in median home prices in Maine over the past several months. Yes, this trend is good news for Maine home sellers, but what does it actually mean for your home’s market value?
As detailed in the press releases, the “median sales price" is basically the middle. Half of the homes sold for more, and half of the homes sold for less. While the steady increase does show a trend, it does not automatically translate into the same percentage increase in the value of your home.
Here in Androscoggin County Maine, the latest statistics showed a 5.6% increase in median sales price over the same period last year (see stats below.) However, a more detailed analysis of the homes sold, shows that much of this increase is actually due to the fact that more buyers are purchasing homes in the higher price ranges. While this is a good sign and can be an indicator of a strengthening economy, it does not necessarily mean that home values themselves have risen by the same amount.
Two years ago, we saw very little activity in the $225,000 - $300,000 range. This year, we have more buyers looking in that range and frankly, not enough homes on the market to show them. Activity has definitely increased as Maine home buyers are feeling comfortable that we have most likely moved beyond the bottom of the market. Also, more buyers are taking action this year since they realize that interest rates are likely to go up. We are now seeing, for the first time in a long time, multiple offers on homes in all price ranges. Inventory is low and buyers are finding that they need to act quickly when they find a home that they love.
Accurate and competitive pricing of homes is still the number one driver for successful home sales. We are seeing well priced homes regularly selling within the first 30 days and for 98.2% of the list price or higher.
If you would like to find out the current market value for your home and the best pricing strategy, please feel free to contact me via phone, email, text, or even carrier pigeon.
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