“I am very optimistic about the Maine real estate market for 2024,” Chris Lynch told MaineBiz. “It is shaping up to be more of a return to the conditions we were enjoying during the pre-pandemic 2018-19 time frame. We will continue to experience an abatement of the unique conditions and circumstances that caused a nationwide feeding frenzy with respect to asset allocation, resource relocation and revived focus on living for today.” The Legacy Properties Sotheby’s International Realty founder and president met with the editor of Mainebiz to discuss the upcoming year’s market outlook. Read the excerpt from MaineBiz below: Mainebiz had a chance to sit down recently with Chris Lynch, principal of Legacy Properties Sotheby’s International Realty. Legacy Properties focuses on the upper end of the home market — homes over $600,000 — which right now might include quite a bit of the market, at least in southern Maine. Looking ahead to 2024, we asked him for his outlook as we head into the New Year. “I am very optimistic about the Maine real estate market for 2024,” Lynch said. “It is shaping up to be more of a return to the conditions we were enjoying during the pre-pandemic 2018-19 time frame. We will continue to experience an abatement of the unique conditions and circumstances that caused a nationwide feeding frenzy with respect to asset allocation, resource relocation and revived focus on living for today.” We often think of the past three years as being characterized by COVID “refugees” surging into the market, bidding wars, cash offers and the waiving of inspections. Lynch said were heading toward a “more normalized” home market. “There is no longer a buyer group which feels the need to escape from the big cities,” he said. “With lots of government stimulus money still on the sidelines feeding inflation, it has become more difficult to access. The Federal Reserve Bank has reversed its easy money policy with a relatively harsh tightening course of higher interest rates. More offices are bringing employees back into the office to increase productivity and accountability. “Lastly, many home sellers who have remained on the sidelines due to lack of inventory and/or the comfort of holding a 3% mortgage, will find that they can now afford to sell their home and find a new suitable home than has been previously out of reach.” In October, when mortgage rates surged to a recent high of 8%, Lynch said that was a “showstopper for both buyers and sellers.” “The home affordability measures were so far out of whack that it seemed like it might take a prolonged period of time to get back to something more tenable,” he said. We’re now looking at mortgage rates closer to the 6.5% range for qualified buyers. “Although that seemed extremely high on the way up in September, it actually looks quite attractive on the way back down for 2024,” Lynch said. Everyone will be watching the Federal Reserve to see whether rates fall any further this year. “With more Fed easing expected, the backdrop is in place to achieve a better balance of buyers and sellers looking to make thoughtful and calculated decisions about where they want to live and how they want to live,” Lynch said. “With the current market conditions, Maine is always going to be a winner.” Read the whole Mainebiz Real Estate Insider Outlook here.