Whether you’re looking for a home or eating popcorn watching the real estate market heat up, everyone needs to know what’s going on in the realm of buying a home. The world is changing and has transformed rapidly over the past year. At the start of 2022, real estate markets around the world were grappling with huge demand, limited sources of supply and soaring prices. Looking towards 2023, outlook changes drastically due to central bank interest rate hikes. Even though a small number of home prices are falling and homes are quietly on the market, forecasts suggest the industry is normalizing the trend we are seeing in home buying.
In the United States, markets are finally returning to comfortable levels due to a history price correction. Jonathan Miller, director of New York-based Miller Samuel, notes that it is clear that the imposition of high interest rates by the Fed has had a major impact on all housing markets in the United States, because rates have been low for too long. This created a supply-demand that just wasn’t feasible and hurt the economy. While there are looming whispers of an impending recession, Miller, among many others, thinks it will be mild compared to some we’ve had in the past, due to our strong job market.
Several major cities around the world are feeling the divide, such as Sydney and London. Alternatively, places that have seen a huge influx of residents in recent years are unlikely to see any impact, such as Miami and Tampa. Luxury real estate experts weigh in on what they predict for the future, with particular interest in New York and Miami.
As for NY, after 2021, a record year for business activity in the city, they have already experienced a huge slowdown by the end of 2022 and this is expected to last at least until the second quarter.
Miami is one of the places that has seen a huge influx of newcomers since the pandemic began, and demand has been so high that inventory is struggling to keep up. Currently, a complete reconstruction of Miami’s real estate is underway to meet resident demands, helping to create a “pro-business” atmosphere.