Could This Maine City See The Largest Home Price Spike In The US?
When most of us think about the cost of homes in the State of Maine, we think of the price as dropping the farther north we go.
We can all agree that Portland, and the surrounding suburbs (for lack of a better term) are the most expensive places in the state to live. While, the value of the typical Aroostook County home is much, much less. In fact, it is still possible in a lot of Northern Maine towns to get a decent home for less than $100,000!
What about Central Maine? Well, for the most part, even with the crazy housing price jump we all saw during the pandemic, homes in most Central Maine towns are affordable. You can still get a decent, in-town, home for less than $200.000.
That may be about to change in at least one Central Maine city, though.
According to an article in the Bangor Daily News, Augusta could see a 7.7% increase in home prices in the next year. To put that in perspective, if you recently bought a home for $200,000, by the middle of next year, that home would be selling for about $215,000.
The article goes on to explain that Maine's capital city is in the top 15 areas among the United States' biggest regional real estate markets where home prices are projected to grow 7 percent or more from April 2023 through April 2024.
While Augusta is one of the markets where housing prices are rising the fastest, it is not at the top of the pile. That title belongs to Sevierville, Tennessee. According to the article, housing prices in that small Tennessee town, that is a suburb of Knoxville, are expected to increase by about 10% in the next year.
So, why Augusta? There are several reasons we are seeing a big jump in the price of homes in the area, but one of the biggest is the lack of inventory. Like much of the rest of the state, there is a shortage of homes and rental properties in Central Maine.
Elsewhere in Maine, Portland, South Portland, Lewiston, and Auburn are expected to see a price jump of about 6% in the next year. Bangor will see a jump of nearly 7% in the next year. This is compared to only about a 2.2% increase in the Boston area.
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