Real Estate Roundup: November 12th, 2024
Leonard Steinberg, Compass Agent
Real Estate Roundup: What You Missed This Week
Welcome to this week’s Real Estate Roundup, where we highlight the latest trends, insights, and key data shaping the real estate market from Leonard Steinberg, top Compass agent. Let’s dive into what’s driving decisions and opportunities in today’s dynamic environment.
Market Trends & Insights
Luxury Spending: Resilient at the Top
While aspirational buyers are pulling back, the ultra-wealthy remain active in the market, particularly for high-value assets. For context, Hermès’ iconic Birkin and Kelly bags account for 25-28% of the brand’s total revenue, despite their hefty price tags and resale values that often double or triple. Real estate continues to mirror this trend, with prime properties maintaining their allure through scarcity and prestige. (Source: CNBC)
Gen X: The Silent Market Driver
Often overshadowed by Millennials and Boomers, Gen X is quietly shaping the real estate landscape. Here’s what you need to know:
72% of Gen Xers are homeowners, holding 33.2% of U.S. real estate. (Source: National Association of Realtors)
Their collective net worth is $42 trillion, second only to Boomers. (Source: Federal Reserve)
Gen X values stability: many are delaying downsizing, choosing instead to capitalize on flexible work environments that let them extend their careers and stay put longer
Emerging Real Estate Hotspots
Dallas has been named the top market for real estate investment in 2025, according to Emerging Trends in Real Estate by PwC and ULI. The city continues to attract both residential and commercial investment due to its economic resilience and growing population. (Source: NBC)
Meanwhile, smaller markets like Carmel, Fishers, and Westfield, Indiana, are gaining recognition, ranking among America’s best small cities for livability and real estate potential. (Source: WalletHub)
Did You Know?
Mortgage Rates: Signs of Relief
Mortgage rates are expected to trend lower, potentially reviving demand in the housing market. This could benefit single-family homebuilders, who are already outperforming broader indices as buyer activity picks up. (Source: J.P. Morgan)
Apartment Construction Boom Stabilizes
After a surge in apartment construction over the past two years, the market is beginning to stabilize. Demand for new units hit its highest level since 2021, signaling a potential turn in the rental market. If sustained, this could give landlords more pricing power by 2025. (Source: CoStar)
U.S. Economy Outshines Global Peers
While the U.S. economy grew 2.8% in Q3, other major economies, including those in the EU, struggled to exceed 1%. The U.S.’s robust growth and adoption of new technologies—like AI—continue to fuel productivity, bolstering long-term confidence in real estate. (Source: WSJ)
Compass Highlights
Breaking Records
Cynthia Moretti and Bob Bailey recently closed Jamestown, RI’s highest-ever sale at $12.25M, while Nick Schneider and Nathan Staggs facilitated the $10.3M sale of NBA coach Luke Walton’s Manhattan Beach home. These high-profile transactions demonstrate Compass’s reach in luxury markets. (Source: Newport Buzz, Mansion Global)
Perseverance Pays Off
Jared Wilk of the Shulkin Wilk Group recently closed a deal 13 years in the making. His client, a first-time buyer, finally found the perfect home after more than a decade of searching—a testament to the value of patience and persistence in real estate. (Source: Internal Compass Report)
Looking Ahead
Election Fallout and Buyer Behavior
As political spending in the 2024 election cycle hits $14.7 billion, market watchers are keen to see how potential tax changes and policy shifts will impact the real estate sector. Issues like capital gains taxes, SALT deductions, and affordability could reshape buyer behavior in the coming year. (Source: OpenSecrets.org, Bloomberg)
Final Thoughts
From luxury spending trends to emerging markets and election-driven shifts, the real estate market continues to evolve. Staying informed on these developments will help you navigate opportunities and challenges alike.
Check back soon for another deep dive into the latest market insights!
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Featuring
Leonard Steinberg
Compass Agent
