As 2024 draws to a close, many buyers and sellers are wondering if it’s the right time to make a move in the luxury real estate market. Despite fluctuating interest rates and seasonal slowdowns, the Southern California market—especially coastal regions like Monarch Beach—continues to offer unique opportunities. This post explores the key trends influencing luxury real estate in Q4.
1. Low Inventory Means Higher Demand
One of the defining characteristics of the luxury market this year has been tight inventory.
- For Sellers: Fewer available homes mean less competition, giving sellers the upper hand. Well-priced homes in desirable locations can attract multiple offers.
- For Buyers: With limited inventory, buyers may need to act quickly. However, this can also be an advantage—serious buyers face less competition compared to spring and summer markets.
2. Buyers Are Motivated to Close Before Year-End
Many luxury buyers want to complete transactions before the end of the year to take advantage of tax benefits or align with personal or business goals. This creates urgency, which can lead to quicker negotiations and favorable terms for sellers.
3. Interest Rate Considerations
Higher mortgage rates remain a consideration for buyers, but they have not dampened enthusiasm in the high-end market. Cash buyers, or those with significant down payments, are still active in the market. For those financing their purchase, locking in a rate before further increases is often a motivating factor.
4. Luxury Market Resilience
The luxury segment has historically been more resilient to economic fluctuations. Coastal properties, in particular, remain highly desirable thanks to lifestyle amenities and limited development space.
Both buyers and sellers can benefit from market conditions this fall. Sellers can take advantage of motivated buyers and low competition, while buyers can secure favorable deals before year-end.
Gerard Lifestyle Real Estate and Berkshire Hathaway HomeServices California Properties is your trusted source for all of your real estate needs—providing expert guidance to both buyers and sellers, ensuring smooth and successful transactions. To speak with Mike Gerard directly, call 714-883-2943 or email him at [email protected]