Right when increasing mortgage interest rates were having the effect of slowing the pace of real estate the closing of the federal
goverment has caused overall demand for home purchases to slow. Further, the effect is a decline in loan demand and consequently a
a decline in rates.
The increase in the pace of average sale prices of homes locally has also declined.
Penobscot County home sales for September of 2011 reached 27.7 million dollars and increased 13.2% to 31.3 million in September of 2012. During the same period the average home sale price increased 2.5%. Sales for September 2013 increased by 36% compared to September of 2012 to 42.8 million with the average home price increase slowing to a 1.2% pace.
The average sale price of homes sold in Penobscot County in September of 2011 was $121,400 and increased to $124,280 in September of 2012. The 1.2% rise in the average sale price from September 2012 to 2013 placed the average sale price at $125,900.