Nestled along the southern coast of Maine, York is a picturesque town known for its stunning beaches, charming downtown, and rich history. It's also home to a thriving real estate market, with properties ranging from quaint cottages to sprawling estates. Oddly, the town of York is not the county seat of York County — that distinction belongs to Alfred, Maine.
There's no denying that the York real estate market has grown in recent years. But what exactly is driving this growth, and what can prospective buyers and sellers expect in the coming months? The real estate market can change quickly, and in this article, we'll look at the current state of the York market and what to keep in mind when buying or selling.
York County real estate: Market snapshot
Nationwide, sales volume decreased by about 21% year-over-year in February 2023. The Northeast region suffered more significant losses of about 26%. In Maine, home sales have similarly declined, though steady buyer demand has kept the York County real estate market afloat.
In York County, the main obstacle is low inventory — the lack of available properties for buyers. Sales volume decreased from 631 units in February 2022 to just 398 units in February 2023 (a drop of 37%). Construction delays have turned the national housing market into molasses, and York County is no exception. However, in the presence of steady buyer demand, median prices increased year-over-year from $420,000 to $430,000.
York housing market forecast 2023
As we look ahead, the York real estate market is expected to see some changes. Here are some of the trends to anticipate.
Property values to stabilize
York's housing market has blown up recently — the median sales price jumped from $295,000 in 2019 to $450,000 in 2022. Even as local properties continue to appreciate, we expect the rate of increase to slow. Expect York County real estate to grow only slightly in 2023.
Interest rates will settle
Interest rates are a significant factor to consider in the housing market. While we saw them rise dramatically in 2022, the National Association of Realtors (NAR) predicts the average 30-year fixed mortgage rate to settle this year, falling below 6%.
Shifts in rental properties
For those interested in investing in rental properties in York, it can be a tough market if you are inexperienced. With most residents opting to own homes, there is a small but competitive market in the rental space. Expect rental prices to increase throughout 2023.
Minimal population growth
Population migration is another factor that can significantly impact the York real estate market. While it's difficult to predict what will happen in the coming years, York may see a minimal increase in net migration.
York County housing market trends
The York County housing market is expected to continue its upward trend into 2023, with significant demand expected around Kennebunkport, Ogunquit, and Wells.
Sales volume normalizes
The pandemic significantly affected the real estate market in York County. Economic uncertainty and lockdowns caused by COVID-19 slowed down the housing market. The buyers and sellers who withdrew from the market are now returning to the market in droves.
Buyers increasingly prefer homes with more space
Besides lowering the local market’s sales volume, COVID-19 caused a shift in buyer preferences in York County. Like many other areas, buyers in York County are prioritizing space (both indoors and outdoors). With the advent of remote work, more professionals are moving into York County even though their workplaces aren’t necessarily nearby.
Fewer foreclosures
Meanwhile, foreclosure activity in the York real estate market has been gradually returning to pre-pandemic levels since the government's moratorium expired, and this is expected to continue well into 2023.
York real estate market: Should you invest?
As home prices in York are among the most expensive in Maine and are expected to grow at a historic rate, it is an excellent time to consider buying, especially for long-term investing.
The following three neighborhoods around York offer a combination of natural beauty, historic charm, and access to amenities that appeal to a wide range of buyers. Home demand is high in these neighborhoods, and the best properties sell relatively quickly.
Cape Neddick
This coastal village is known for its stunning ocean views, historic architecture, and vibrant community. Cape Neddick's appeal to buyers is due to its peaceful atmosphere, access to natural amenities, and proximity to local attractions. The neighborhood offers many properties, including waterfront homes, luxury estates, and historic properties.
York Harbor
Known for its beautiful beaches, historic landmarks, and charming downtown area, York Harbor's appeal to buyers is due to its small-town charm, access to outdoor activities, and proximity to popular tourist destinations. Luxury homes sell for over $1 million in this preferred south Maine destination.
Kittery Point
Kittery Point is located in Kittery, Maine, just a short drive from York. It is known for its historic homes, access to outdoor activities, and proximity to local amenities. Kittery Point is the southernmost town in Maine, and its outlet stores are frequented by bargain hunters, many of them tourists. Homes in Kittery Point tend to sell quickly.
Ready to invest in York real estate?
Despite recent challenges, the York housing market has shown steady growth and resilience. A combination of high demand, low inventory, and rising prices makes the market favorable for sellers, while buyers continue to seek out the area's natural beauty, historic charm, and amenities.
As the market evolves, work with an experienced real estate agent who can provide advice and direction on navigating the local market. Anchor Real Estate is familiar with the York County area and its market. With our comprehensive resources and personalized approach, we're here to help you achieve your real estate goals in York. Reach the expert agents at Anchor Real Estate when ready to move toward your real estate goals.
*Header photo courtesy of Anchor Real Estate
