JANUARY 2024
As we all know, it has been a wild last few years in the real estate market. Here at the Oberg Agency, we asked ourselves, “How does all this nation-wide news relate to our small-town community?”. Here we have compiled our thoughts and opinions on the real estate market, based on what we are seeing here in town. This may be a long read, but if you are looking for a glimpse into what’s really going on here in the Lake Region housing market, you’re going to want to follow along.
It’s no secret that over the last three years or so, home values and interest rates have been on the rise. Here in the Lakes Region area, we have a built-up demand for waterfront and water access homes, some buyers searching for years. These properties are still selling for top-dollar, with very few days on market, and at times still, with multiple offers. But if you’re not in the market for a million-dollar lake house, your shopping experience is probably a very different one. With interest rates on the rise, (currently somewhere in the 6-8% depending on your financing route) many buyers are feeling frustrated with the spike in overall costs to purchase. Affordable housing doesn’t feel affordable anymore. Buyers feel like they’re overpaying for properties, yet sellers feel they have built-up equity and expect to be compensated as such. The result of those conflicting feelings has led us to somewhat of a “stale-mate”. Inventory is on the rise, homes staying on the market longer, resulting in price reductions, yet still not going under contract. Although Winter is generally a slower season, this one feels particularly slower than usual.
In our opinion, this slow-down in the market may actually be a good thing for buyers who have struggled to get their foot in the door during the Covid-boom frenzy. Buyers now have a chance to present their offer to sellers with very little competition, with more negotiation power. Sellers must be more flexible and creative to come to an agreement that feels profitable for everyone. Lenders suggest the opportunity to refinance in a few years for a better interest rate, while buying a home you really love for a good price.
The truth is, there is a lot on the horizon for Bridgton and the surrounding areas. It’s not hard to see the improvements and growth coming to the Lakes Region. The need for housing doesn’t seem to be going away any time soon. Bridgton has had significant investments that have created a niche real estate market. The natural resources here have always been bountiful, but now with the infrastructure to support it, the real estate demand has significantly increased. With our finger on the pulse of the next wave of development, along with our experience in the Bridgton real estate market, we foresee a continuation in demand for the next year, plus. We are bullish on the Greater Bridgton market for the future. The Covid-boom has moderated buyer competition, but we don’t expect to see the bubble to burst, as national economists may predict.
Although we don’t have a crystal ball to tell you exactly when the right time will be to buy, we feel strongly that now is as good time as ever to invest in Bridgton and the surrounding Lakes Region.
Oberg Insurance & Real Estate
132 Main Street, Bridgton ME 04009
207-647-5551
