Maine real estate sales rise 17 percent in May

SOUTH PORTLAND – Home sales in Maine rose nearly 17 percent in May with prices going up almost 11 percent, according to the Maine Real Estate Information System Inc.

For the month, home sales increased in all Maine counties except Androscoggin County, where sales fell 3 percent, it says. The median sales price during the month was $133,000, up from $120,000 in May 2001.

The strong market is the result of low interest rates, low unemployment rates in southern Maine and the poor performance in the stock market, which drives people to put their money in real estate, said Bernie Whitehouse, a real estate agent in South Portland.

“Combine this with the slower supply of new housing units entering the market in southern Maine and we produce a strong sellers’ market in the residential segment,” he said.

The Maine Real Estate Information System is a subsidiary of the Maine Association of Realtors and keeps tracks of real estate sales through its multiple-listing service. It does not track home sales conducted without agents.

The system identified 3,059 transactions in May.

Cumberland County had the highest number of home sales and the highest median price – $169,900 – in the state. Lincoln and York counties had median home sales prices of $165,000. The median home price in Aroostook County was $50,000, the lowest in the state.

Home sales in May rose 6.3 percent in the Northeast from a year earlier, the system says. Nationally, home sales for the month rose by 6.5 percent.

Jim Fitzgerald, president of the system and an agent in Kennebunkport, said the only soft part of the market is for high-priced homes. He said the poor stock market performance has given people less disposable income for luxury homes.

Out-of-staters also are turning to Maine for second homes, which has helped fuel house sales, he said.