Chat GPT & Real Estate Trends

I asked ChatGPT what comedian, George Carlin would think of ChatGPT if he were still around. It coughed up some gobbledygook G-rated mumbo jumbo. Not a 4-letter vulgarity in sight. I also asked ChatGPT if it would write a Jeff’s Journal real estate article in my voice. ChatGPT spit out…. “In the sun-soaked realm of Palm Beach, the real estate tapestry is woven with elegance, embodying a unique fusion of luxury living and tropical allure. As we traverse the winding avenues of this coveted enclave, the market reflects a dynamic synergy…blah blah blah.” I think I can quote George Carlin best on what he would say about Chat GPT in this instance. “Marketing Bull****!”

I just got back from Inman Connect NYC, which is a large real estate conference in New York City. It is a who’s who in real estate and goes over all the latest trends. I spoke on a few panels regarding The Power of Community in Times of Chaos on our Peanut Butter & Jelly drive after Hurricane Ian. I also participated on a Broker Think Tank and Mastermind.

Here are 12 takeaways from the current real estate market and what to expect in 2024 and beyond……

The marketplace has been at a stalemate. The number of transactions in residential real estate in 2023 was at the lowest point since 1995! In 1995, the population was 27% less than it is today. Much of these statistics from Zonda. I wrote about the Stalemate in August and it turned out to be the theme of 2023. Expect at least 10% more transactions in 2024.
Prices of resales have remained flat. This is because the shortage of homes is estimated to be more than four million. On the new construction side, prices last year were also flat.
Inflation is way down and mortgage rates are following. The economy is no longer overheating.
Inventory is up but prices are still holding because of lack of inventory nationwide. Despite the jump in inventory in 2023, it’s still down 31% from 2019. Building starts were up in 2023 but should slow down in 2024.
There will be some office conversion to residential. 18% of offices nationwide are vacant. However, it’s very difficult to convert because of zoning, purpose, cost and useability.
Pent up demand is growing. Baby Boomers led the way with 39% of home buyers in 2023. They were just 24% in 2022. That is because Baby Boomers have more wealth and make more cash purchases.
72% of the population was under a 4% mortgage in 2022. That number has now dropped to 59%. That 13% drop should continue.
Watch for more compromise with buyers settling on alternatives. Smaller homes and expanding search radius.
The FED announced future rate cuts. This along with Pent Up Demand should create activity and a jump in prices. Many in our industry believe that once rates drop below 5.99 or 5.5%, the differential, affordability, pent up demand and less of a percentage of people with low rates will spur a boatload of buying and selling. I was interviewed by CBS News MoneyWatch on this matter as well.
Watch for more advances in reimagining a dated room to more of your style with current photos. AI is getting very good at this.
Watch for Apples new 3D Vision Pro. In time, this could be a game changer.
AI will be used in real estate to automate monotony. However the content AI produced is of lower quality and easy to detect. After writing this, I saw the estate of George Carlin filed a lawsuit against a group behind an AI-Generated Stand Up Special. In AI’s defense, I do not know if the George Carlin Estate can or will win the lawsuit for a bad knockoff? Don’t the jokes have to be funny?!

Jeff Lichtenstein, originally from Chicago, got his start in the home furnishings textile business where he traveled over 35 weeks a year selling fabrics. After the family business was sold, Jeff moved to Florida and became a real estate agent. Today he is the owner and broker of Echo Fine Properties, a luxury residential brokerage voted best brokerage of the year. Jeff manages a non-traditional model of real estate that mimics a traditional business model. Echo has 80 agents, an average of one million dollars per transaction and over 500 million in annual sales. Between traveling for work and annual family trips to national parks with his wife and 2 now adult children, Jeff has visited 49 states. He is also one of the few Chicago White Sox fans you’ll ever meet. Some publications he has been quoted in.

Author of business & leadership book How Making a Sandwich Can Change Your World – The Amazing Success of the PB&J Strategy – Available to Buy Now!

Feel free to ask him a question directly at jeff@EchoFineProperties.com including a complementary valuation of your home.

Posted in Open House Blog, Real Estate Tips on January 27, 2024 at 6:00 am.

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Days on MarketDOM

38Days | -7%

Active InventoryAI

4,900 Homes | 17%

Median Sales PriceMSP

$615,000 | 6%

New ListingsNL

1,904 Homes | 13%

Closed SalesCS

811 Homes | 2%

Dollar VolumeDV

$952.2M | 10%

Months of InventoryMOI

4.2 Months | 24%

Pending SalesCS

1,298 Homes | 2%

Chat GPT & Real Estate Trends