Spring 2025 Maine Housing Market Outlook: Trends, Prices & Predictions
Maine. The Pine Tree State. Land of rugged coastlines, lobster bakes, and now, a housing market that keeps folks talking. Buyers, sellers, investors – they all want to know what’s coming next. Spring 2025. What does it hold for the Maine real estate market? Let’s cut through the noise and look at the facts.
The Lay of the Land: Maine Housing Market in Early 2025
The year 2024 saw a good clip of sales in Maine, up nearly 4.89% from the year before. People were buying. The median sales price also climbed, over 8.39% to $390,200. More homes came onto the market too, a ten percent jump – the first rise in two years! That’s good news for buyers who had been facing slim pickings.
January 2025 kicked off with a bang. Single-family home sales surged over thirteen point twenty-eight percent compared to the year before. The median sales price hit $385,000, a nine-point increase. And the number of homes for sale? Up sixteen percent.
February followed a similar beat. Sales were up six and a half percent, with 750+ homes changing hands. The median sales price reached $381,500, a nine percent rise. Listings were up fourteen percent.
But Maine is not one town.
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- Southern Maine, being close to Boston and the coast, often moves faster and at a higher price point than Central or Northern Maine.
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- In 2024, counties like Androscoggin (11.17%), Cumberland (6.26%), Franklin (11.67%), Hancock (14.54%), Penobscot (6.59%), and York (12.40%) saw strong sales increases, while others like Aroostook (-3.72%) and Kennebec (-1.17%) saw dips.
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- Prices also varied, with Franklin (20.00%) and Piscataquis (19.05%) counties seeing the biggest jumps.
Understanding these regional variations is key.
What’s the Price Tag? Maine Home Prices in Spring 2025
Statewide, the median sales price for single-family homes in January and February 2025 hovered around $380,000 – $385,000. Looking at a rolling quarter (December 2024 to February 2025), the median price was $393,000, nearly twelve percent higher than the same period a year ago.
County by county, the picture starts to shift. Franklin and Hancock counties saw the biggest price increases in that rolling quarter, while Piscataquis and Somerset saw some slight decreases.
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- In Portland, the median listing price in February 2025 was $650,000, but the median sold price was lower at $581,900.
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- Bangor saw a median listing price of $312,400 and a sold price of $289,700.
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- Lewiston’s median sold price in March 2025 was $324,950. Coastal areas, as always, tend to command a premium.
Interest rates are playing a big role in terms of what buyers can afford. While rates have come down a bit from their peak, they remain higher than in recent years. As of mid-April this year, a 30-year fixed mortgage APR in Maine was around 6.9%. This impacts monthly payments and overall affordability.
| Location | Spring 2024 Median Price (Estimate) | Spring 2025 Median Price (Estimate) | % Change (Approx.) |
| Statewide | ~$360,000 | ~$381,500 | ~+6.0% |
| Portland | ~$525,000 | ~$581,900 | ~+10.8% |
| Bangor | ~$275,000 | ~$289,700 | ~+5.3% |
| Lewiston | ~$300,000 | ~$324,950 | ~+8.3% |
| Cumberland Cty | ~$530,555 | ~$565,000 | ~+6.5% |
| York Cty | ~$475,000 | ~$500,000 | ~+5.3% |
Buyers and Sellers: Who’s Doing What in Maine Real Estate?
Who’s buying in Maine?
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- Remote workers continue to be drawn by the lifestyle and more affordable housing compared to major metro areas.
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- Retirees are still seeking the peace and quality of life Maine offers.
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- First-time homebuyers are also active, but – like a lot of the country – face competition and affordability hurdles.
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- Millennials, particularly the younger ones, make up a large portion of buyers, with many entering the market for the first time.
Sellers in Spring 2025 need to be smart.
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- With more inventory, overpricing can lead to a longer wait time on the market. Realistic pricing based on recent sales is key. And negotiation might be more common as buyers have more options.
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- The median days on market has increased, which means homes are taking a bit longer to sell.
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- Some sellers who locked in low mortgage rates are hesitant to move, creating the so-called “lock-in effect”. Price reductions are also becoming more frequent.
Inventory and New Builds: What’s on the Horizon?
Inventory levels have also been a major story. The increase in 2024 continued into early 2025. And January and February saw significant year-over-year increases in the number of homes for sale. While this is obviously good for buyers, the months’ supply still hovers around 3 months, which is below the 6 months that usually indicate a more balanced market.
And Spring typically brings even more new listings.
New construction is also picking up.
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- Construction employment in Maine grew over seven percent between 2023 and 2024.
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- New housing starts in the Northeast saw a big jump in the third quarter of 2024. MaineHousing completed 775 affordable housing units in 2024, with more in the pipeline for 2025.
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- Updated building codes in Portland went into effect in April 2025, which aims to create better energy efficiency. Municipalities across Maine are also working on other housing plans.
Money Matters: Mortgages and Affordability in Maine
As of this writing, mortgage rates in Maine are slightly lower than the national average. While national averages for a 30-year fixed mortgage APR hovers around 7% with Maine being in that same area. Experts are predicting that rates might stabilize or even slightly decrease by the end of 2025. However, some anticipate continued volatility around the 7% mark.
Lending trends remain stable for qualified borrowers. MaineHousing’s First Home Loan program continues to offer lower rates and down payment assistance for eligible first-time buyers.
Affordability remains a key concern and may be a concern for a long time. Maine has an affordability ratio of 5.1, meaning it takes over five years of median household income to afford a median-priced home. Home prices have grown faster than wages in recent years. The rental market is also tight, with over half of renters considered cost-burdened. As a place to rent, Maine ranks No. 13 in the U.S. with average monthly rents reaching $1,971.
Hot Spots: Maine Markets to Watch This Spring
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- Portland continues to be a hot market, attracting buyers with its culture and economy. While listing prices saw a slight drop, sold prices remain high, and experts predict continued price growth.
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- Lewiston-Auburn is another market to watch, with projected strong price appreciation. Its relative affordability compared to southern Maine makes it pretty attractive.
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- Rockland and Camden offer coastal living, but with different dynamics. Camden’s listing prices are high, but homes often sell below the asking price. Rockland shows more moderate price increases.
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- The DownEast/Acadia Coastal region has a very high Airbnb occupancy rate, which could indicate a strong secondary home and vacation rental market.
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- Augusta is projected to have the highest price growth among Maine’s MSAs.
The Crystal Ball: Expert Predictions for the Rest of 2025
Experts generally predict continued moderate home price growth in Maine for the remainder of 2025. Buyer demand is expected to remain solid. The market is likely to continue its gradual shift towards a more balanced state. A major housing market crash in Maine doesn’t look to be in the cards.
The spring market this year is expected to present opportunities for both buyers and sellers in Maine. The anticipated increase in the number of homes available for sale, combined with relatively stable mortgage interest rates, should create favorable conditions for real estate transactions. The third quarter (July-September) is predicted to see stable, slow-paced growth with mortgage rates and APRs remaining in the mid-to-high 6 percent range. The rental market is expected to remain strong.
Final Thoughts: Navigating the Maine Housing Market in Spring 2025
In summary, the Spring 2025 Maine housing market presents a landscape of continued, albeit moderating, growth.
For buyers, the increase in inventory means more choices than in recent years, potentially leading to more negotiating opportunities. However, demand still remains solid, and well-priced homes, especially in more desirable areas, are still likely to attract competition. Getting pre-approved for a mortgage and working closely with a local real estate agent will be crucial for getting through this market effectively. Buyers should also be prepared for mortgage rates and APRs to remain in the mid-to-high 6 percent range and factor higher rates into their affordability calculations.
For sellers, homes are likely going to have to be priced competitively based on recent sales data and current market conditions. While demand remains strong, the increasing inventory means that overpriced homes may sit on the market longer. Sellers should consider staging their homes to highlight their best features and be prepared for a selling timeline that might be slightly longer than the rapid pace seen in previous peak markets. And be ready and willing to negotiate as this could be key to finalizing a successful sale.
Real estate investors should note the projected continued growth in markets like Lewiston-Auburn and Augusta, which show strong potential for price appreciation. The rental market, driven by affordability challenges in homeownership, also presents ongoing opportunities for those investing in rental properties. However, investors in the short-term rental market should remain aware of local regulations and potential fluctuations in demand.
Ultimately, staying informed about local market conditions is paramount for all participants in the Maine housing market. Trends can vary significantly across different regions and even within specific towns and cities. Hit up your local real estate professionals to make sure you get the most up-to-date and personalized advice for navigating the Spring 2025 market and beyond.
Ready to make your move in the Maine real estate market? Whether you’re buying, selling, or investing, understanding the trends and predictions is an important step in the process to finding the right home.
Disclaimer: “Rates referenced are for informational purposes only. Actual rates and APR will vary based on borrower qualifications, lender fees, and loan terms.”
