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It’s no secret that you need a wad of cash to buy a house in Maine, with a shortage of properties for sale continuing to push prices up despite signs the housing market is cooling .
But how much are the prices? In the Portland and South Portland metro area, you need to earn at least $130,000 a year to buy a home with a median price of $472,790, according to research released this week by the United States Joint Center for Housing Studies. Harvard University, based on April data.
This translates into a monthly payment of nearly $3,400, including the $2,400 mortgage, plus insurance and property tax. For its data, Harvard assumed a 3.5% down payment on a 30-year fixed mortgage with no points and an interest rate of 4.98%.
This is the highest income required to buy a home in the state. Although it is less than the $181,200 needed in greater Boston, Cambridge and Newton, it is still much higher than in other parts of Maine.
Those wanting to buy in the Lewiston-Auburn metro area need to earn $78,800 to afford the median home priced at $286,609. The monthly payment would total $2,036.
To afford a home at the median price of $266,850 in the Augusta-Waterville micropolitan area, the buyer would have to earn $73,400, with a monthly payment of $1,380.
The Bangor metropolitan area was the most affordable, requiring an income of $66,160 to purchase a home at the median price of $240,620. The monthly payment would total $1,710.
House prices are rising faster than wages. The average annual salary for all occupations in Maine was $53,230 in 2021, according to state labor data. However, management occupations averaged $102,360, while CEOs averaged nearly $150,000.
Average salaries for all occupations in the Portland and South Portland metro area were $57,000, according to state data. Those in the Bangor metro area were $52,920 and those in the Lewiston-Auburn area were $50,640.
National home price appreciation was 20.6% in March 2022, according to the Harvard study, surpassing the previous high of 20% in August 2021 and marking the biggest jump in three decades of holding. of registers.
He concluded by saying that public and private policies must focus on providing affordable housing for people in the lower and middle classes.