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2024 Real Estate Forecast

Interest Rates: Expect continued moderation, facilitating more transactions compared to 2023.

Home Prices: Anticipate a 3-5% increase in home prices.

Out-of-State and Second Home Demand: Foresee this segment contributing to 30% of the market.

Growth Areas: The northern and western regions of southern coastal Maine will continue to grow, potentially leading to affordability challenges for buyers.

Affordable Housing: Recognizing the national issue, new zoning laws in Maine aim to address this concern, but the tangible benefits may not be fully realized until beyond 2024.

Inventory: Expect the continued low inventory to maintain high prices, but a more balanced market is on the horizon.

Seasonality: The real estate market is predicted to experience a robust spring, gaining momentum after a potentially slower first quarter.

Overall Transactions Increase: Foresee more transactions as interest rates settle in, and life changes prompt people to move. The anticipation is not for a dramatic shift but rather a better year in 2024 compared to 2023.

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