Luxury Real Estate Trends and Observations for 2024

Introduction

Why is this Podcast Relevant?

While we focus on selling in South Florida, we recognize that nothing sells in isolation. This micro-level awareness extends to cities as well, acknowledging the ongoing migration and interconnection between New York, Los Angeles, and Miami.  The way people move between different places and own properties in various locations is something we’re very familiar with. As real estate agents, we have a strong connection with and insight into these types of buyers. When you’ve been working with an Elliman agent in places like Greenwich or Manhattan and decide to make the move to Miami, we get why you’re making the change, what you’re searching for, and can guide you to the most suitable neighborhood and property type. We understand your background and your preferences.

The Cohesion of Douglas Elliman Realtors

This event and our podcast is a testament to the strength of Douglas Elliman’s connections. We don’t just talk the talk; we walk it. While many agents claim to have networks with others, often through email, we actively engage with fellow agents to truly comprehend their respective markets. By understanding the psychology of buyers who approach us, we gain insight into their needs and desires, making us more effective in helping them.

 Luxury Real Estate Trends Shared by these US Markets

In the world of real estate, we might work in different cities, but it’s remarkable how many similarities we find across the board. Let’s break it down:

• Across the spectrum, a noticeable decrease in transactions is apparent.
• High-interest rates are applying the brakes, making buyers more cautious and sellers hesitant to refinance with higher rates and increased taxes on their new homes.
• Inventory levels are at extreme lows, causing quite a challenge for prospective buyers.
• Prices per square foot are on the rise
• It’s still predominantly a seller’s market due to limited supply and pent-up demand.
• Record-breaking transactions are on the rise, with sales prices and prices per square foot reaching new heights.
• The luxury market remains robust, with properties selling quickly and breaking records.
• In all markets we see a true appetite for luxury product. Luxury brands keep breaking the mold with higher levels of architecture and finishes.
• In all markets the supply of new product (both homes and condos)  is dramatically low or non-existent
• Quality of life and family time have taken center stage when choosing a city, neighborhood, or home.
• Homes at the lower and upper ends of the spectrum are still in high demand, and are not affected by the interest rates.
  • Entry-level homes in primary luxury markets (like LA, Miami, Boston, and Houston) between $1M-$2M selling rapidly, despite the high-interest rates, leading to bidding wars and multiple offers.
  • Ultra-luxury markets, those $10 million and above, rely on cash and are therefore less affected.
• The most affected markets are in the middle range, with homes ranging from $2 million to $6 million, especially in cities like Miami or LA. This segment, often referred to as the “working wealthy,” depends on interest rates and doesn’t necessarily need to move.
• Most agents, just like most economist, expect interest rates to come down in 2024.
• EVERYONE IS BULLISH ABOUT 2024.

Conclusions on the Luxury Real Estate Trends and Observations

The prospects for 2024 are overwhelmingly positive, with a widespread sense of optimism about the upcoming year. Anticipations of lower interest rates are fueling this positivity, as even a 1% decrease is expected to spark a fresh surge of real estate transactions. Sellers will likely find it easier to sell their properties, and new inventory will enter the market. Additionally, buyers are gradually adapting to the idea of slightly higher rates after being accustomed to historically low rates in recent years.

If you’d like to delve deeper into the Miami market or any of the other markets discussed in this podcast, please don’t hesitate to reach out to me. I’d be delighted to arrange a meeting with you and a local expert in another city to explore the markets, their similarities, and distinctions. Our primary aim is to assist both sellers and buyers in making more informed decisions.

Schedule a Meeting with David