It’s that time of year where analysts and industry experts share what they think is in store for New York City real estate in the new year. One analyst, Co-Founder and Partner of UrbanDigs Analytics, John Walkup, however, shared 5 things to watch for in 2024 as these elements will impact the trajectory of the market in the new year.
While I’m sure everyone is familiar and pays attention to most, if not all, of these economic, social, and geopolitical factors, I thought it was worth highlighting them.
No. 1: Interest and Mortgage Rates
If interest rates go down as expected next year and the Fed lowers rates around early summer, mortgage rates may also drop. This could make buying a home more affordable and increase demand, especially in markets with limited housing supply.
No. 2: The Strength of the General Economy
If the economy stays strong and people continue to spend, we may see a boost in Manhattan real estate sales, especially in the high-end luxury market. This could be because people feel wealthier and more confident about making big purchases.
No. 3: The 2024 Presidential Election
If the 2024 election creates a clear difference in policies, homebuyers may hesitate and wait to see what happens. This could lead sellers who need to sell quickly to lower their prices in order to attract buyers.
No. 4: Geopolitical Uncertainties
If things around the world start looking uncertain, there might be a rise in demand for safe investments in the form of properties priced in US dollars. This could mean that foreign investors may become interested in buying condos in Manhattan.
No. 5: Return-to-Office Dynamics
If more people start going back to the office in person, demand for Manhattan real estate may increase. This could be because people who currently commute or those who want to live in lively urban neighborhoods may show more interest in buying property here.
John Walkup’s insights are based on a blend of data-driven analysis and market trends. It is important to note, however, as he points out that the market's path is influenced by various factors so no one can really predict what will happen; but this at least gives us a sense for the direction things could be headed. I hope you found it as enlightening as I did. As always, I will continue to keep you informed with weekly updates throughout the year, to ensure you’re always up to date on what’s happening in the market. Feel free to reach out with any questions or to discuss your anticipated real estate needs for 2024.