12/04/2023
Sounds right…
This time of year, EVERY YEAR, all of my clients, colleagues, friends, and family ask:
"What is going to happen with real estate next year?!"
So, here are my honest thoughts for 2024:
Warning: I may not have a crystal ball, but I do have over 15 years of experience in selling luxury real estate with over $6B worth of transactions under my belt. However, it's still important to note that these are nothing more than educated guesses.
1. We are going to have even greater BIFURCATED MARKETS.
Some industries are returning to pre-COVID patterns, while others are now permanently changed.
As a result, there is significant interest in the repositioning of big box retail and commercial space.
2. Stemming from the increase in work from home, there will be more NATIONAL SEARCHES.
People are now expanding their searches drastically.
Rather than looking at comps in a building, neighborhood, or city, they're looking comps across multiple states!
3. SUBURBS are on the rise.
This is driving up the demand for bigger homes with more amenities and privacy.
Transaction volume is down by over 50% and listing volume is down by over 20%... yet median pricing is up by almost 5%.
This creates more tax dollars for the suburbs, so if you're an investor, pay attention to what the municipalities are doing with that money (schools, restaurants, parks, etc.).
4. BRANDED RESIDENCES will be in strong demand.
Since 2010, we've seen 40% growth in branded residences – and buyers have proven to be willing to pay a premium for them.
5. DOWNTOWNS built around professional workers will feel immense pressure.
Don't get me wrong:
Downtowns are not going to go away... but stemming from my 2nd and 3rd points, we are going to see even greater pressure on dense living spaces.
6. Investors are going to become BEARISH on real estate.
I hesitate to talk about this because I'm in the real estate business... but with high interest rates, low supply, and low transaction volume, fewer investors are going to be looking to acquire property (in the near term!).
7. Prices are going to continue to... INCREASE!
I know – this sounds crazy, right?
The lack of inventory is going to continue, and it's going to keep prices high and growing.
As the economy continues to do well and inventory stays locked, demand is going to continue to outpace supply.
And if interest rates do come down... if you think prices are high now, just get ready.
8. Interest rates will actually STABILIZE.
I don't think interest rates are going to plummet, but if unemployment stays low, the Fed will keep interest rates stable.
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P.S. If you want to hear about each of these predictions in even MORE detail, check out my newest video on my second YouTube channel, More Ryan Serhant.
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Every year can be the GREATEST year of your life.
Remember, markets shouldn't dictate your outcomes. They should only dictate your strategy.
Ready. Set. GO!
