2024 Chicago Real Estate Predictions
As we approach 2024, the real estate landscape is poised for significant changes. In this insightful discussion, Mike Golden, the visionary co-founder and co-CEO of @properties Christie’s International Real Estate, offers his expert perspective on market dynamics, growth segments, and the strategic direction of his company in the coming year, providing valuable insights for industry professionals and enthusiasts alike:
What do you expect for the overall housing market for 2024? Up, down or stable? Why?
Similar to 2023, 2024 will be a challenging year, highly dependent on interest rates and inventory. If rates come down, we could see more inventory, but demand will increase too, which would put upward pressure on prices. That’s not necessarily a bad thing, as the Chicago market remains relatively affordable compared to other major US cities. Election years tend to cause a bit of a market slowdown too, so that’s something to watch in the second half. The transfer tax is another potential destabilizer in the city if it’s voted in. Similar to Los Angeles, Chicago could see a surge in luxury listings as sellers try to avoid the tax, followed by a pronounced drop in activity once it goes into effect.
Do you think any segments of the residential market will see growth in 2024? (new construction, rural, luxury, etc.)?
New construction should remain strong due to low resale inventory and homebuilders’ ability to offer some mortgage rate relief with buydowns. I think we could see an uptick in downtown condo sales given where rents are vs. the great values to be found in the market. If the new transfer tax passes, we could also see some city buyers – especially in that first luxury tranche – opting for the suburbs instead, creating growth in those markets.
What growth, if any, do you expect for your company next year? Do you expect your business to thrive, decline or remain stable? Why?
For us, remaining stable is never an option. We always plan and expect to thrive in our business. In challenging markets that can mean gaining market share; continuing to recruit and retain top agents; further innovation of our industry-leading technology, marketing, and coaching and training; opening new offices like we’ve done recently in Bronzeville and Northwest Indiana; and strengthening our culture through real estate and non-real estate activities.