I had an interview with a business, I won't say the name, but after the interview, the interviewer stated he felt he couldn't hire me because I appeared to be OVERQUALIFIED for the position, is that even possible?

Yes it is possible and employers use that reason to not hire. Why? Because they know that once you find something to fit you better, down the road you will go. A person can have either too much education, too much experience, be more inclined for another position, etc. The prospective employer is looking out for their own investments in an employee. Why spend the money training when you may well not be there in the next 6 months?