Rising interest rates continue to slow the climb in real estate prices while demand for new homes in Maine remains high, according to the Maine Association of Realtors.

The median sale price in Maine in October was $332,000, according to the association. The price is 7.79% higher than the median home price recorded in October 2021, but the increase remains in single digits (September’s data showed a 3% increase over last year).

“While demand remains steady for Maine’s tight for-sale inventory, increased mortgage interest rates have impacted the market,” said Madeleine Hill, the association’s president. “Buyers who need to finance their home have less purchasing power, and the recent pricing deceleration indicates that sellers are adjusting.”

Hill said the association reported 1,600 sales in October 2022, despite a drop of 23.41% compared to October 2021. 

“Sales volume last month outpaced the number of homes coming onto the market, and for-sale inventory remains tight with eight percent fewer homes on the market in October 2022 compared to September 2022 – and 58% fewer homes for sale than pre-pandemic October 2019,” she said.

Nationally, sales decreased in October 28.2% compared to last year, with a national median sales price of $384,900. The price represents an increase of 6.2% compared to October 2021, according to the National Association of Realtors. Sales in the northeast went down 23%, with a median sale price of $408,700, an increase of 8%.

Over the past three months, Cumberland County recorded the most homes sold at 1,032, a decline of nearly 20% compared to the same period last year. Piscataquis County recorded the fewest sales, at 116, a decline of 6.45%.

Regarding median sales prices over the past three months, Cumberland also took the lead with $499,000, an increase of more than 11.5%. Aroostook had the lowest median sales price at $145,000, an increase of 16%.