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Haute Residence leaders give their predictions for the 2024 real estate market in their cities.
Michael Eisenberg, Bel Air, Los Angeles, CA
I think it depends on who is more likely to be President of the USA and who is able to get control of interest rates and attempts to make housing more affordable.
Priscilla Haisley, Miami Shores, FL
The Miami Real Estate market is different than other places in the US. We have a flock of international buyers and “taxes saving” US buyers moving from NYC and Cali, for example, which makes Miami a very competitive market. I believe this year, we will have a steady decline in the interest rates until the second/third quarter of the year. However, the single-family homes inventory is still low in certain areas of Miami, and this year, we will have the elections, which usually bring a slight pause in real estate activities. I believe that now is the time to buy, where not many buyers are looking yet, and deals are still being negotiated with sellers' credit and so on…
Frank D. Isoldi, Westfield, Union County, New Jersey
With predicted cuts in interest rates in 2024, I foresee it being a very active market right out of the gate, with buyer demand continuing to outpace inventory. Smart buyers have been aggressively buying in December to avoid the multiple bid frenzy of the Spring Market.
Jacopo Iasiello, Brickell, Miami, FL
In 2024, the overall real estate market is anticipated to exhibit a predominantly flat trend, marked by a reduction in the number of available properties. This shift can be attributed to various factors, including economic conditions, interest rates, and inflationary pressures.
Despite the overall flattening of the real estate market, a notable exception emerges in the luxury segment. Specifically, the luxury real estate market is poised to remain robust and resilient. This resilience is driven by the distinct nature of the luxury market, which tends to operate independently of broader market fluctuations.
Nowhere is this more evident than in Miami, where the luxury real estate sector is expected to demonstrate strength and vitality. The appeal of Miami's luxury properties transcends economic uncertainties as the region continues to attract high-net-worth individuals seeking exclusive residences and premium amenities.
Key factors contributing to the strength of the luxury market include a sustained demand for unique, high-end properties, the allure of Miami's cosmopolitan lifestyle, and the city's status as a global destination for luxury real estate investment.
Moreover, the performance of the luxury market in 2024 may be influenced by shifts in interest rates and inflation. A scenario of lower interest rates could further bolster the luxury real estate sector by making financing more attractive for high-end buyers. Simultaneously, concerns about inflation might drive investors to view luxury real estate as a hedge against the eroding value of currency.
In conclusion, while the overall real estate market is expected to experience a flattening trend in 2024 with diminishing property availability, the luxury real estate market, particularly in Miami, is poised to maintain its strength and allure. This resilience is attributed to the unique characteristics of the luxury market and its capacity to navigate economic fluctuations, even in the face of changing interest rates and inflationary pressures.
I predict 2024 will be a better market than this past quarter. The time to buy is actually now, while there is less competition. Next year and after the holidays, buyers will be back. In the end, people need to move on with their lives. It might mean getting kids into good schools, settling in after a relocation, scaling up or down, or moving in or out. Life goes on; and over the past year many have been on hold. Here’s to a wonderful 2024 and a strong market. Happy New Year!
One of the unforeseen benefits of the pandemic was the discovery of Maine as a desirable state in which to live, with luxury homes available at much lower prices than other parts of the country. 2023 saw strong interest in these homes, even with low inventory. As mortgage rates continue to decline and stabilize, the demand for homes will increase, and I believe prices will continue to rise. Many of these homes are second or third homes for their owners, so 2024 will find them thinking about liquidating some of their assets, which will hopefully also give us a rise in inventory to meet some of this demand.
Debra Johnston, Atlanta, GA
