What Maine Home Buyers Should Expect for Prices in 2025

It has been a frustrating few years for home buyers here in Maine. Relentlessly high interest rates and low inventory have made purchasing a home quite the challenge but there is some good news on the horizon, we hope…

First off, according to Maine Home Connection, Maine saw 1,482 homes sales during the month of July. That number has increased almost 11% compared to July 2023. While most predicted an increase in inventory this year, that number is higher than most experts had expected.

Due to the softening of inflation interest rates have fallen as well. Most outlets that I have seen expect this trend to continue, but it’s also important to know that the drops are expected to be minimal. The way I see it is at least we’re moving in the right direction.

So naturally one might think that with more inventory and lower interest rates that home prices may go down. Well, it’s important to keep supply and demand in mind, meaning lower interest rates usually means more buyers so the likelihood of prices going down is unlikely.

However, most are predicting a minimal increase in home prices over the next year. I think the biggest price increase prediction that I have seen is 5%, with most forecasting much lower than that. For example, Fast Company shared 8 expert predictions for 2025 that say home buyers should expect anywhere from a .3% - 4.4% increase. Although prices aren’t expected to go down, this would be the smallest increase that we have seen since the most recent boom that started during the pandemic.

While it's not a drastic shift, things are slowly moving in a more favorable direction for home buyers in Maine. With a bit more inventory and interest rates continuing slowly on the decline, the market is showing signs of balance. If you're in the market to buy or sell or just have questions, I am always happy to help. You can reach me here.

While home prices may not drop, the slower rate of price increases offers a bit of relief compared to the rapid jumps we’ve seen in recent years. It’s not a complete turnaround, but it’s a step toward a more manageable market for buyers. Fingers crossed this positive trend continues.