The October 2023 Institute for Luxury Home Marketing monthly trend report is out now! The following is per the Institute for Luxury Home Marketing October 2023 Market Report:
In a continuation of last month’s report, we take a deeper dive into the upcoming trends for the rest of 2023 and early 2024, especially as the market has seemingly settled into a new norm. In general, the market remains statistically favorable to sellers mainly due to the continued lack of inventory.
Experts are predicting that home prices will continue to rise, at least during the rest of 2023, but notably at a considerably more moderate pace. Pricing is still being controlled by lower-than-average inventory levels, which itself has become a major driver of the market’s status. While it’s predicted that interest rates are likely to fall, albeit not until late 2024, it still seems unlikely that prices will decline as higher demand will offset any negative increases in inventory levels. Most analysts and economists predict, according to a report from Norada Real Estate Investments, that over the next five years, prices will remain either flat or will only experience a modest decline. Paired with more robust lending standards, no one anticipates a similar price crash to the one that occurred in 2008.
However, buyers, especially those looking to purchase with cash, recognize that the current market does now offer more opportunity as well as some additional negotiation leverage. Despite the significant drop of demand and sales in the latter part of 2022, the first nine months of 2023 showed an upward trajectory for both home prices as well as sales for single family homes. Attached home prices saw more variation, but the volume of sales also increased. Month-over-month between January and June, sales increased. While they dipped in July, typically a slower month as people escape for vacation, August’s figures show an uptick in demand.
Although sales and prices have not returned to the same heights as the first quarter of 2022, which was probably the top of the market in terms of price and demand, the current trajectory signifies a steady demand for luxury properties. This bodes well for the upcoming fall/winter market, especially when compared to the same period in 2022.
Luxury homeowners are investing in smart home technology as it improves the quality of their lifestyle by creating healthier environments, controlling daily routines, and providing security and safety when at home or even at a distance. Some of the key trends in smart home technology for 2023/2024 include: 1. Voice control: The use of voice assistants like Amazon Alexa and Google Assistant to control various smart devices has been growing and is expected to continue, along with improved voice recognition technology in kitchen appliances. 2. Smart appliances: More appliances, such as refrigerators, washing machines, and ovens, are becoming smart and interconnected, allowing for remote monitoring and control. 3. Energy efficiency: Smart home devices designed to increase energy efficiency, such as smart thermostats, LED lighting, and energy monitoring systems, are becoming more popular as people seek to reduce energy consumption and lower utility bills. 4. Security and surveillance: Demand for smart security systems, including video doorbells, smart locks, and home monitoring cameras, are on the rise as people prioritize home security. 5. Home automation: Integrating various smart devices into a central automation system for convenience and efficiency is a growing trend, especially by tech-savvy homeowners. This includes controlling lighting, heating, cooling, and entertainment systems through a single interface. 6. Health and wellness: Smart home technology is increasingly being used to monitor health and well-being, including fitness trackers, sleep monitors, and air quality sensors. For homeowners looking for their next home, it is still important to recognize that although costs to purchase will be much higher currently, over the long-term, real estate offers one of the most consistent ways to see a good return. More importantly, ownership provides security and a haven for their family.
Did you know that Carl Johnson is certified as an Institute for Luxury Home Marketing Specialist, CLHMS, which means he offers superior knowledge and experience in the luxury market? His CLHMS membership also provides him with access to an elite network of contacts and resources that help to find you your dream home from Swansboro to Beaufort and beyond. If you have a high-end listing, using the most up-to-date marketing information, Carl positions your listing ahead of the market curve.
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