PORTLAND (WGME) – Mainers waiting for prices to drop before they buy a home may have to wait a little longer.
Julia Smith lives with two roommates in a Portland apartment complex.
With high rent and student loans, she says home ownership isn't even a possibility right now, especially in Portland, where she works.
"All the folks who are living here year-round are getting driven out,” Julia Smith said. “Folks who work here in the city can't afford to live here in the city."
According to Realtor.com's 2023 housing forecast, home prices in Greater Portland will continue to rise next year at one of the highest rates in the country.
Local realtors say home prices in Portland rose 11 percent this year.
Despite rising interest rates and an economic downturn, realtors predict home prices could increase by another 11 percent in 2023.
"One of the big challenges is that we don't have enough houses for the buyers in the marketplace,” Portland real estate broker Derrick Buckspan said. “And so it's hard to imagine a situation where prices are coming down before that inventory starts to come up."
"The sellers still have the upper hand because, frankly, we don't have the inventory that we need out there right now," real estate broker Fiona King said.
King says she's still seeing bidding wars.
"In the spring, it was not unusual to have 10-12 offers on a property, and for it to go $50,000, $60,000, $70,000 over price,” King said. “Now what we're seeing is that we're having multiple offers. But three or four offers are coming."
According to the housing forecast, those higher prices are likely to keep many home buyers away. That's bad news for renters, though. With fewer potential home buyers, it will only increase the demand on rental properties, raising rents in Greater Portland.
"I'm seeing that a lot with my peers and my friends, that if we're not renting, it's really hard to find a place that's affordable," Julia Smith said.
As home prices soared in Greater Portland, Henry Smith gave up trying to find a one he could afford.
"I haven't really looked too much recently,” Henry Smith said. “It just doesn't seem feasible right now."
When it comes to the 2023 real estate market, it seems sellers still hold all the cards.