Belgrade Lakes Region Real Estate Update 2021
The Belgrade Lakes Region has become a destination spot for those looking for their own “piece of Maine”. A trend that unfolded from the pandemic is significant movement of people from urban areas to destinations like Maine. The COVID pandemic allowed for many people to change their lives and their working environments (work from home) allowing for a migration to a new lifestyle.
The growth in our area has outpaced that of the National and State real estate markets. While individual home sales realized a modest 5% increase, our regions average sale price increased by 26% in 2021, and 97% from 2019 price levels. Low inventory combined with this demand has led to dramatically shorter days on the market and increasing prices.
Key Statistics - Residential Homes
Waterfront properties traditionally make up 40% of all homes sold in the area. In 2021, this actually decreased to 32% of local home sales. Waterfront properties did however drive the significant increase in sales prices. The average sale price for a waterfront home in the region increased by 35% in 2021. The average time on the market for newly listed waterfront homes was under 3 weeks! Half of the newly listed homes were under contract within a week. The demand, higher prices and short market times are driven by a shortage of inventory. The number of new waterfront listings is reduced by more than 30% from previous years. All of these factors have created an environment known as a “Sellers Market”.
Key Statistics - Waterfront Homes
Our local market has a great need for inventory, and this has been the case for a few years now. Low inventory and high demand havce led to increases in prices as buyers flood to the region. Nobody could have seen what the pandemic did to our market, and moving forward there is still uncertaintly as to where we go from here. What is certain is that we are beginning 2022 with record low inventory, and high demand. The transition to Spring and Summer often brings an influx of new property lilstings. Will the new supply meet demand? The past few years have told the story of demand outpacing supply.
The word of rising interest rates will also be interesting to watch. The past year brought an increase of cash buyers, but there are many factors that go into a strong offer.
If you have been thinking about selling, the time certainly is right. SELLERS
If you are looking? Dont lose hope. We can help. BUYERS