ZIP Code 04862 Housing Market

📝 Local Market Notes

The housing market in ZIP code 04862, located within Knox County, Maine, has experienced a pronounced upward trajectory over the past five years. The FHFA Home Price Index (HPI) for this area rose from 232.7 in 2021 to 392.14 in 2025, representing a cumulative increase of approximately 68.5%. This growth was particularly sharp between 2023 and 2024, when the index jumped from 283.57 to 371.48, indicating a period of accelerated price appreciation. The most recent year-over-year change of +5.56% suggests that while the pace of growth has moderated from the previous surge, the market remains firmly in expansion mode. This performance demonstrates a clear divergence from broader regional trends. While the state of Maine recorded a modest +0.98% year-over-year increase, and Knox County saw a +3.76% rise, ZIP 04862 significantly outpaced both. This outperformance signals localized demand drivers that are stronger than those affecting the general county or state markets. Compared to nearby ZIP 04843, which declined by 8.95%, and ZIP 04856, which grew by 4.54%, 04862 stands out as a resilient and high-growth sub-market. The sub-market character appears to be a high-demand, owner-occupied segment. With a parent county median home value of $324,900 and an owner-occupancy rate of 78.7%, the area leans heavily toward homeownership rather than rental activity. The HPI level of 392.1, which is nearly four times the 2000 baseline, indicates that home values in 04862 have appreciated substantially faster than the national average, positioning it as a premium segment within the county. For prospective buyers, the combination of a 7.40% mortgage rate and robust price growth implies that entry costs are elevated. Residents and investors should note that this specific ZIP code is decoupling from the slower state-wide market, reflecting distinct local value drivers that sustain higher price points and continued appreciation pressure.

Based on FHFA House Price Index data.