2024 Luxury Outlook Report
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The Sotheby’s International Realty® 2024 Luxury Outlook report overviews industry trends in high-end residential markets around the world and highlights what you can expect in the year ahead.
A message from A. Bradley Nelson, Chief Marketing Officer of Sotheby's International Realty:
Welcome to the Sotheby’s International Realty 2024 Luxury Outlook. In the pages ahead, we’ll explore what you need to know in order to stay informed and ready to make a smart real estate decision at any moment.
After the past few years’ frenzied market, we’re hitting more of a buyer-seller equilibrium, with inventory levels moving up ever so slightly, buyers getting used to a new normal of interest rates, prices generally holding steady, and high-end home seekers expanding their reaches to more parts of the globe.
There are lots of changes happening, and we explore them in depth—everything from the newest tech tools currently disrupting the real estate market, from artificial intelligence to smart-home technology, to pinpointing the parts of the world where tax incentives are increasingly enticing wealthy citizens.
We look at emerging markets such as Saudi Arabia and Mexico City, as well as the tried-and-true high-net-worth enclaves such as New York and Miami. We explore the strength of these markets, the effects of fluctuating currencies there, and much more.
We also look at the growing importance of sustainability and climate resilience to home builders and buyers, how hybrid work has shifted the world’s real estate needs, and how provenance can help homes sell.
This is a difficult time when it comes to geopolitical challenges, with several conflicts raging around the world at once. That makes it difficult to predict what the future will bring, and whether an intensification of conflict could affect financial markets.
For now, there continues to be economic uncertainty into 2024, despite some sporadic positive news. In the U.S., for one, economic growth accelerated in the fourth quarter of 2023, according to the Commerce Department.
While many experts are torn about the effects the conflicts are likely to have from a financial perspective, many market watchers predict an overall positive 2024 for the real estate market. As Sotheby’s International Realty CEO Philip A. White Jr. points out in his interview, Freddie Mac is forecasting prices rising by 0.8% between August 2023 and August 2024, followed by another 0.9% gain in the following 12 months, pointing to “tremendous” demand for houses relative to supply, continuing “to keep upward pressure on prices.”
For now, at least, most of the worries about the real estate market stalling due to rising interest rates haven’t come to fruition, with demand strong, as people move both because they’re going through major life events—such as new children and new jobs—or simply because they want to upgrade their homes and, with it, their lifestyle.
Speaking of the lifestyle factor, as always, we explore the high-end purchases people are making outside the real estate realm, including art, collectibles, and more.
We know that luxury buyers and sellers want to spend wisely, and staying well-informed is just the way to do it.
This article was originally published in Sotheby’s International Realty’s Insight Art of Living blog in January 2024.
*Disclaimer
The information contained in this report references market data from MLS boards across Canada. Sotheby’s International Realty Canada cautions that MLS market data can be useful in establishing trends over time but does not indicate actual prices in widely divergent neighbourhoods or account for price differentials within local markets. This report is published for general information only and not to be relied upon in any way. Although high standards have been used in the preparation of the information and analysis presented in this report, no responsibility or liability whatsoever can be accepted by Sotheby’s International Realty Canada or Sotheby’s International Realty Affiliates for any loss or damage resulting from any use of, reliance on, or reference to the contents of this document.
