While there is little doubt that the current luxury market is facing challenges, we investigate the slight shift in some of the market’s variables that could be the key to market growth in the future.
We acknowledge that during the last year the expectations and reactions of buyers and sellers have become so entrenched in hesitation and resistance that the market feels like it’s almost in stalemate.
However, October statistics show some small but insightful changes that may, if they continue, shed light on how the current status quo could shift and help kick start the market into a new gear.
New and existing inventory numbers have not only increased relative to sales for the first time since April, but also compared to October 2022. This leads us to ask if the largest contributor to this market’s imbalance, the lack of inventory (especially new inventory each month), is about to be addressed.
For the first time in 2023, monthly sales outnumbered the previous year’s sales in both single-family and attached markets – could this be the result of increased inventory?
Additionally, buyers saw fixed mortgage rates fall slightly in both Canada and the U.S., sparking an increase in applications as well as speculation that rates may come down during 2024. We investigate the significance of these market variables and review the implications.
As always it is important to understand that the art of selling and buying should always include an analytical approach to truly appreciate the realities within your local market, as they may differ from the viewpoint at the national level.
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For homeowners looking to sell or buy their luxury home in today’s market we recommend working with a realtor who can provide you with critical knowledge about your local market, maintain a high level of security and safety during the process and who knows how to leverage technology and strategies to provide maximum exposure and assistance.
Get exclusive insights into the upper-tier real estate market at one of The Institute for Luxury Home Marketing’s live or online training sessions. Enroll today!