What's driving Portland's 50% home price premium over the rest of Maine?

"Active listings jumped 33% year-over-year to 974 homes while 40% of sellers cut prices, yet Portland's $639,900 median maintains a 50.6% premium over the $425,000 state median, signaling persistent buyer demand for Maine's largest metro even as negotiating power shifts. The PortlandSouth PortlandBiddeford metro recorded 118 absorbed properties during the week ending Dec. 5, 2025, down 4% from 123 a year earlier."

"New listings totaled 44 homes for the week, contributing to a months of supply measure of 2.0, which keeps the market in seller-favorable territory despite the inventory buildup. Portland's active single-family inventory reached 974 homes, marking a 33% increase from 731 properties in December 2024. The surge hasn't dampened market velocity, with homes taking a median 70 days to sell, still 14 days faster than the national median of 84 days and seven days quicker than Maine's statewide figure of 77 days."

"At $356 per square foot, Portland properties cost 40% more than Maine's $255 average and 70% above the $210 national figure. The 40% share of listings with price reductions points to seller recalibration rather than broad weakness. Only 1.4% of properties increased prices during the week, suggesting most sellers recognize the need to meet shifting buyer expectations. This adjustment phase hasn't eroded Portland's position as Maine's premium market."

Active listings in the Portland-South Portland-Biddeford metro rose 33% year-over-year to 974 single-family homes, with 44 new listings during the week and 118 absorbed properties. Months of supply measured 2.0, keeping the market seller-favorable despite increased inventory. The median list price was $639,900, down 1.6% year-over-year but 50.6% above the $425,000 state median. Homes sold in a median 70 days, faster than national and statewide medians. Price per square foot averaged $356, well above state and national figures. Forty percent of listings had price reductions; 6% were relisted and 1.4% increased prices.

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