Real estate ends 2023 on a strong note
Altos Research has released its last report of 2023, and the numbers are looking stronger than 2022.
According to the report, almost every signal listed is pointing towards growth. Inventory is slowly but steadily starting to increase. Sales rates are also climbing which means more homes are going into contract now than last year. This means that supply and demand are climbing together.
Home prices are still inching upwards, but they’re not shooting upwards. This indicates that there are enough buyers to support prices at or near current levels.
Price cuts on existing listed homes has also seen a decrease. Currently, 34.8% of the homes on the market have undergone a price reduction. This is back into ‘normal range’ for the market. A reduction rate of 30%-to-35% is considered ‘normal’ by Altos Research.
What was the most expensive home sold in 2023?
The housing market in 2023 was a bit rocky for markets, depending on the time of year and location. However, the luxury property market was still active.
The most expensive property sold in the U.S. in 2023? Beyonce and Jay-Z purchased the most expensive property sold in the country last year. Their 30,000 sq. ft. mansion was designed by Japanese architect Tadao Ando and can be found right off the Pacific Ocean in Malibu, CA.
The massive home spans eight acres and offers its own private beach, and an infinity pool. The home was privately listed, so the number of bedrooms, bathrooms, and other amenities are unknown, but you can bet that they’re substantial.
Is a ‘Silver Tsunami’ coming for the housing market?
A ’silver tsunami’ in housing refers to aging Americans downsizing or moving into care facilities, and putting their homes on the market. According to expert market analyst Meredith Whitney, 2024 could be the year that home sales activity increases due to a large number of older homeowners deciding to move.
Whitney said, “The AARP estimates that 51% of people over 50 downsized their home, and people over 50 are 74% of total U.S. homeowners. So if you just take half of that, you’ve got about 30 million homes that should be coming on the market. And the peak in existing home sales was 2005 when you had around seven million transactions.”
Whitney went on to say, “That, I think, is what’s going to be reshaping housing in America, and I think that’s what will put regional pressure in terms of more and less on home prices.”
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