MAINE - The Portland, Maine, real estate market has recently experienced a hot and low supply market. Although the city proper is declining in population, Portland's suburbs are seeing strong growth. As a result, prices are rising, and inventory is at historic lows. In addition, mortgage interest rates are rising, likely affecting homebuyer activity.
The Portland home market has cooled slightly ahead of interest rate hikes in June, and more cooling could be on the horizon. Rising interest rates have resulted in less competition for homes, allowing buyers to ask for price cuts. However, the low supply continues to create an advantage for sellers. Despite the low inventory, the two to the four-unit multifamily property market is set to increase by 7%.
Because of the shortage of housing inventory, Portland landlords are escalating their rents. This is forcing many renters to look for new housing options. This is especially true for young professionals who are trying to rent apartments or houses. As a result, many inquiries have been returned to scam websites.
While Portland is considered to be a tenant-friendly city, the housing market is also not tenant-friendly. If you own a single home, it will be easier to rent. But if you plan on renting your apartment, you need to consider the pros and cons of renting your home.
One of the biggest factors driving the Portland real estate market is the number of Millennials looking to move to the city. These are primarily young adults who want to live in a family-friendly, cultural city. They include both grads and mid-career professionals. This demographic attracts Portland real estate investors because it will add to the local population. Ultimately, this means that the Portland housing market is on the rise.
Another factor influencing home prices is the political situation. Presidential elections are often accompanied by economic uncertainty. While this can be a blessing for home buyers, the new president's election will result in uncertainty and buyers' hesitancy. This uncertainty can lead to a drop in home prices.
As home prices continue to rise, it is possible that the Portland, ME, real estate market will begin to slow. The housing market has been over-valued and stretched in recent years, so the 2023 real estate market may plateau and even begin to decline. However, this would benefit buyers and investors looking to flip properties.
Rising gas prices will also affect the housing market, driving down the demand for houses in the suburbs. With more people working at home, long commutes won't be as necessary as they once were.
