Guest authored by Yann Rousseau, Managing Partner at BARNES New York
– What happened in 2023?
The year 2023 was marked by a period of significant slowdown in the New York real estate market, departing from its reputation for constant dynamism. Despite the historic adaptability of the New York market, a slight correction emerged towards the end of the year, underlining the challenges faced by the sector. Mortgage interest rates maintained a steady upward trajectory into the third quarter, exerting further financial pressure on market players. A complex global geopolitical situation also casted a shadow over the real estate market, particularly hampering foreign investment. In addition, inventory hit an all-time low, further complicating the New York real estate landscape. These conditions contributed to a notable drop in closed sales, reflecting the persistent challenges the New York real estate market has been facing throughout 2023.
– What will happen in 2024
The outlook for the New York real estate market in 2024 heralds an encouraging turnaround after the correction period of the previous year. Positive signals suggest an end to this corrective phase, with an anticipated upturn in activity as early as spring, during the second quarter. This recovery should be accompanied by an improvement in economic indicators, breathing new life into the market. At the same time, a gradual reduction in interest rates is expected, offering attractive opportunities for buyers and potentially stimulating demand. In addition, the local geopolitical context is likely to play a determining role in shaping the real estate market, with New York-specific factors likely to influence investment decisions. One notable trend for the coming year is the expected strong come-back of the luxury real estate industry, which is expected to regain its attractiveness, drawing investors’ attention, and strengthening the spirit of the New York real estate market in 2024. These uplifting signs point to a year 2024 characterized by renewed optimism, growth opportunities and a revitalization of the high-end real estate segment.
Insights brought to you by FACC Member BARNES New York.
About BARNES: A major player in luxury real estate, FACC Member BARNES New York and its team provide you with its portfolio of the most exclusive properties, for sale or rent in your agency. For more than 10 years, BARNES has helped its French and foreign customers in their real estate acquisitions in the United States.
BARNES’ Franco-American consultant team, multilingual and multicultural, will bring you the best real estates, legal and fiscal solutions in order to find the best way to meet your needs. In addition to their real estate transaction service, we can also assist our clients as owner’s representatives with the property.
