The median price of a single-family home in Knox County reached a record high $425,000 during the past three months.

The Maine Association of Realtors issued its monthly news release on Wednesday, July 20, which included a statement that higher interest rates is beginning to affect home sales.

“The housing market in Maine is beginning to feel the effects of rising interest rates. Sales of single-family existing homes declined 9.83% last month, according to Maine Listings which is affiliated with the Maine Association of Realtors.

In Knox County, the number of single-family homes sold from April 1 through June 30, 2022, dropped 12% from a year ago (178 to 155). The median price, however, jumped 26% from $337,500 to $425,000.

The Maine State Housing Authority stated in its housing affordability report for 2021 66% of Knox County residents were unable to afford the median home price in 2021.

“Discussions with Realtors across Maine indicate that some are experiencing a ‘pause’ in their market areas,” said Madeleine Hill, 2022 president of the Maine Association of Realtors and designated broker at Roxanne York Real Estate in Harpswell in the news release. “We are beginning to see homes staying on the market for weeks instead of days, price adjustments, and fewer buyers competing for new for-sale listings as rising mortgage interest rates have cooled some segments of buyer demand.”

Statewide in Maine, the for-sale inventory of single-family properties remains historically low with 1.8 months of supply available for-sale. A six-month supply is considered a balanced market, the release stated.

Knox County’s median price is well above the state median of $350,000. Median prices range from a high of $525,000 in Cumberland County to a low of $155,450 in Aroostook County.