Buying a home in Maine has never been so difficult, experts say - NewsCenterMaine.com WCSH-WLBZ

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High interest rates, high home prices, and low inventory have made it difficult to afford a place to call home.

MAINE, USA — If you're looking for a place to call home in Maine, you've probably seen more obstacles than housing options.

The Maine State Housing Authority recently released its 2023 annual report which said the task of creating more housing options in Maine "has never been more daunting." Maine needs more than 80,000 new homes to meet the current deficit and meet the projected population growth, according to a study released in October.

"It used to be like, 'OK, is this my dream home,' but now it's like, 'Let's just get you into a house,'" Kate DiBiase, a mortgage lender with Northstar Mortgage, said.

DiBiase said the combination of high interest rates, high home prices, and low inventory has made it difficult to afford a place to call home.

"First-time buyers especially are getting approved with me, and I'm like, 'Well you can afford a $250,000 house,' and then it's like you look at the market and there is not one home for sale at $250K," DiBiase said.

Realtor Amy Foley, who owns Signature Homes Real Estate Group, said she's seeing many people waiting for interest rates to go down. However, she said she doesn't anticipate housing prices to decrease any time soon.

"Even houses that are in distress, which you can't even find a lot of those anymore, they're untouchable for some people just price-wise," Foley said.

She said affordable housing options are next to impossible to find, which has impacted not only the first-time homebuyer.

"The problem is there's a lot of sellers who want to sell, [but] there's just nowhere to go. There's just nowhere to go if they want to downsize or upsize, they're having the same struggle that first-time home buyers are having," Foley said.

Foley and DiBiase advised people looking to buy a home to find a mortgage lender who offers different programs and options. They said to get creative with your agent and lender and form a plan that'll set you ahead of others looking to buy.

DiBiase, who was named the #1 loan officer in the state of Maine for three years running by The Warren Group, said it's helpful to look at your whole financial profile and find ways to pay down your debt before focusing on a down payment for a mortgage.

If you're interested in learning more about MaineHousing's homebuyer programs, click here.