The Maine housing market in February 2025 presents a complex landscape, characterized by declining sales prices and a notable increase in inventory. The Median Sales Price has decreased to $382,000, reflecting an 8.3% decline year-over-year. This downward trend in sales prices is mirrored by the Median List Price, which stands at $408,900, marking a 4.9% decrease from the previous year.

Despite the drop in overall prices, the market shows resilience in terms of Price Per Square Foot. The median Price Per Square Foot has risen to $246, representing a 5.3% increase year-over-year. Similarly, the Median List Price per square foot has increased by 6.6%, reaching $272. These figures suggest that while overall prices are declining, the value of space is appreciating, indicating a potential shift in buyer preferences towards smaller, more affordable properties.

Sales activity in Maine has slowed, with 881 Homes Sold in February, a 7.1% decrease compared to the same period last year. Pending Sales have also declined by 10.8%, totaling 1,130. However, New Listings have seen a slight increase of 1.9%, with 1,141 properties entering the market. This increase in New Listings, coupled with a significant 28.4% rise in inventory, suggests a growing supply of homes available to buyers.

The Months of Supply, a key indicator of market balance, has doubled to 3.7 months, indicating a shift towards a more balanced market. This increase in supply is further evidenced by the Median Days on Market, which has risen by 10% to 62 days, suggesting that homes are taking longer to sell.

The average sale to list ratio has slightly decreased to 97.6%, down by 0.8% year-over-year, indicating that sellers are receiving slightly less than their asking prices. The percentage of Homes Sold above list price has also decreased by 4.0%, now at 25.1%. Additionally, the proportion of Price Drops has slightly decreased by 0.9%, now at 14.5%, suggesting that sellers are adjusting their expectations in response to market conditions.

Finally, the percentage of homes going off the market within two weeks has decreased by 4.6%, now at 41.2%, indicating a slower pace of transactions. This slowdown may be attributed to the increased inventory and longer days on market, as buyers have more options to consider.

Overall, the Maine housing market in February 2025 is characterized by declining sales prices and increased inventory, suggesting a shift towards a more balanced market. While sales activity has slowed, the increase in Price Per Square Foot indicates a potential shift in buyer preferences. As the market continues to adjust, both buyers and sellers will need to adapt to the changing dynamics.