As stated last month in Anthony’s Predictions for 2026, 2025 was “a year riddled with industry headlines about tariffs, the new Trump Administration, major trade and national economic changes that seemed to have been met with incredible market resilience. Despite all that, 2025 will go down in history as the pivot year where the Real Estate market began to head back in the right direction!” To that end, we saw increases in nearly every category except multi-family sales, which were down 0.6%, essentially holding steady.
In 2025, the Maine housing market built on the momentum from 2024, with slightly higher sales activity and continued price gains compared to 2024, reflecting broader national trends. Buyer demand remained strong despite affordability pressures, while limited inventory continued to influence market dynamics. Many homeowners holding pandemic-era low mortgage rates remained cautious about selling, but life changes and other circumstances steadily brought new listings to market. As inventory gradually improved, sellers had to pay closer attention to pricing strategies. Buyers remained engaged, navigating borrowing costs and home prices with a long-term perspective. Even with rates at the 6-7% range, homeownership remained attractive for its stability, potential for equity growth, and predictable monthly payments, reinforcing its long-term advantages over renting.
This report breaks down sales, average prices, the number of active listings, and how many listings went under contract for 2025 compared to 2024, and discusses what is predicted to unfold in 2026.
2025 Real Estate Performance Highlights:
- The number of homes sold increased by 4.4%
- Average prices for closed sales increased by 2.8%
- The number of homes listed increased by 7.8%
- The number of homes placed under contract (pending) increased by 2.5%
- Inventory rose over the past four years, giving buyers more selection in the market.
- 2026 is expected to bring inventory closer to normal levels and home sales could rise up to 10% over 2025
Sales Rise by 4.4%
Sales in Maine increased from 17,270 in 2024 and came in at 18,036 at the end of 2025– just a little over 750 more sales year over year. Rates moved in a favorable direction toward the end of the year, boosting buyer confidence and activity. Potential sellers became more willing to make a move and felt more comfortable trading in their pandemic-era mortgage rates once fixed rates dipped into the low 6% range.
Sales were up in two out of three categories:
- Single family sales up by 4.8%: 14,441 in 2024 to 15,139 in 2025
- Condo sales up by 3.9%: 1,884 in 2024 to 1,961 in 2025
- Multi-family sales down by 0.6%: 942 in 2024 to 936 in 2025
Below is a graph that illustrates home sales per year since 2000. After a few years of steep declines, 2025 increased slightly over 2024.
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Monthly sales were up nine out of the twelve months over 2024, resulting in the overall increase. The late summer exhibited a lot of activity, as did December, which usually calms down over the holidays.
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Average Prices Increase by 2.8%
Prices in 2025 increased over 2024 by $13,960 with 2025 at $514,661 compared to $500,700 in 2024. Despite affordability challenges, prices continued to rise as low inventory fueled competition among motivated buyers, often leading to multiple offers and higher final sale prices.
Prices increased in all three categories:
- Single family prices increased by 3.1%: $499,995 in 2024 to $515,632 in 2025
- Condo prices increased by 0.3%: $515,433 in 2024 to $517,231 in 2025
- Multi-family prices increased by 2.3%: $482,006 in 2024 to $493,173 in 2025
This marked the highest average prices in Maine since 2000, and in many areas, the highest ever recorded. As long as demand exceeds supply, prices are expected to remain firm.
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In 2025, monthly prices consistently surpassed those of 2024. The growth since COVID is especially noticeable when comparing the 2020 green line to the 2025 purple line, highlighting the substantial price increases over time.
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Average prices rose across nearly every county in Maine, showing gains between 1.5% and 13.4%. Even more remote inland counties saw significant increases, indicating that demand is widespread, not only in coastal or urban areas.
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2025 Listings Rise for the First Time in Two Years
Listings increased 7.8% in 2025, building on 2024’s rebound after the historically low levels seen in 2023, the lowest number of listings since 1994. Many sellers had held back, reluctant to give up their pandemic-era mortgage rates. In 2025, slight drops in interest rates and personal circumstances motivated more homeowners to list. Total listings reached 24,446, still below the long-term norm of around 30,000 homes annually, but the trend points to growing inventory and more choices for buyers in 2026.
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Pending Sales Increased by 3.4%
2025 saw a 2.5% increase in pending sales, which helped drive up the number of closed sales. By the end of 2025, there were 17,766 pending sales, compared to 17,339 in the previous year.
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Maine Housing Inventory Exhibited a Notable Increase
Inventory levels in 2025, while still below long-term norms, increased steadily over 2024 levels. Seasonal trends remained consistent, with inventory rising in spring and summer before tapering in late fall and early winter. As Anthony often notes, selling in winter and buying in late fall can give homeowners advantages: winter sellers face less competition, while fall buyers benefit from more options and stronger negotiating power.
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Will the 2026 Real Estate Market Improve?
The housing market showed renewed strength at the close of 2025. According to the National Association of Realtors, home sales rose in December and finished slightly above 2024 as mortgage rates stabilized. Maine mirrored this trend, with late-year activity increasing, particularly in counties like Cumberland and York, where buyer demand remained robust despite affordability pressures.
Rates spent much of 2025 in the mid-6% to low-7% range, offering predictability after years of volatility. Early in 2026, rates dipped below 6%, energizing the Maine market and encouraging buyers who had been waiting. This supports expectations that borrowing costs may continue to ease in the year ahead.
Although 2025 remained challenging due to high prices, price growth slowed toward year-end, helping balance the market. Buyers gained some relief while home values stayed strong thanks to ongoing demand. Early 2026 reports indicate a surge in purchase applications, the highest since January 2023, further showing that activity is picking up.
Housing inventory also improved. While Maine still trails national averages, more homes are coming to market, giving buyers more options than they’ve had in years. Sellers must continue to price strategically, while buyers now have increased flexibility. As Anthony said in his recent 2026 Predictions, “2025 was certainly an adjustment year that set the stage for a healthy 2026. We are on the other side of this down cycle and are on our way back to a steady and active real estate market in the years to come.”
The post Maine 2025 Year in Review first appeared on Lamacchia Realty.