The real estate market has shown significant shifts and patterns throughout 2024, with varied performance across regions and property types. According to reports from TBC Capital and real estate associations, this year’s market insights reveal both challenges and opportunities for buyers and sellers alike.
Starting with residential real estate dynamics, Tbilisi's market recorded impressive growth by the end of December 2024. A total of 3,940 transactions were completed, marking a 7% increase compared to the previous year’s figures. The overall number of sold properties increased by 2%, culminating from the annual activity reported by TBC Capital, which illustrated not just the volume but also the financial growth within the market.
By the last month of the year, the asking sale price averaged at USD 1,223, signaling only minor fluctuations from December 2023, which saw prices rise marginally by 1%. Although there was a slight 2% dip when compared to November 2024, this consistency speaks volumes about the market’s resilience. With the total market value reaching USD 2.318 billion, growth was seen at 6% annually, indicating strong demand against the backdrop of varied economic circumstances.
Among the properties sold, new apartments saw particularly noteworthy performance, with 981 units sold, reflecting extraordinary growth of 48% annually. Meanwhile, sales of older apartments experienced slight decline, dropping by 2% year-over-year with total transactions reaching 2,959. This transition highlights changing preferences among buyers, with new constructions representing 25% of the total sales—a record high for the year.
The average selling price has also experienced subtle yet positive changes; both new and old apartment prices rose by 2% over the year, even when compared to the previous month where they reflected 2% decrease. Sizes significantly influenced sales, as properties ranging from 50 to 75 square meters comprised 42% of total sales, though their share shrank slightly from last year. Notably, high-priced apartments (over $1,500 per square meter) accounted for 23% of sales, marking a 5 percentage point increase from the previous year.
Geographically, the highest number of residential properties sold remained within the Didi Dighomi district, commanding 26% of all transactions, followed closely by Saburtalo at 16%. Didi Dighomi also stood out for increased sales of new apartments, whereas districts like Didube, Krtsanisi, Gldani, and Chughureti recorded significant annual growth tied to new developments.
Turning to the U.S. market, the Chicago Metro Area presents another case study for real estate performance. Despite slight overall declines, Chicago’s market exhibited resilience with home sales tallying at 88,413, just 1.3% down from 2023. The annual median price of homes rose significantly by 7.9% to $350,000, showcasing continued investor interest and homebuyer demand, even against the environmental concerns of diminishing inventory.
Delving hones straight to the city of Chicago, 22,071 homes were sold. Although this was down 1.6% compared to the previous year, the city saw rising median prices ($355,000, up 7.6%)—indicative of tight supply and increasing buyer competition. Notably, the average fixed mortgage rate dipped from 6.82% to 6.72% over the year, yet continued to exert pressure on many ranges of prospective buyers, evidenced by the significant 15.2% decrease of homes for sale.
Geoff Smith, the executive director of the Institute for Housing Studies at DePaul University, provided insight on the matter stating, “Looking at broader market conditions, inventories remain tight, and mortgage rates remain high.” He added, “Housing sentiment remained high to close the year based on continued optimism about mortgage rates potentially declining and improving buy-sell conditions for 2025.”
Erika Villegas, president of the Chicago Association of Realtors, also expressed her observations, noting, “Buyers are broadening their horizons and budgeting proactively, with the awareness of persistent interest rates, adjusting within the limited inventory available.” This reflects adaptability among buyers aiming to navigate the current market challenges.
Not all the markets faced the same hurdles; economic drivers such as retail trade data were closely monitored throughout end-of-year sales figures. Australian economists anticipated this week's releases would help clarify consumer budgets and spending habits, reflecting broader economic trends. The Australian Bureau of Statistics forecasted a 0.8% quarterly increase for real retail sales data for December, shedding light on household spending and overall market sentiments.
While prices appear to have flattened overall, insights from various segments suggest varying adaptations and forecasts across different markets could sustain focus heading steadily toward 2025. Analysts are particularly interested to see how potential rate cuts could stimulate home values, prodding buying behaviors and potentially reigniting interest from hesitant segments of the market.
Overall, as we close out 2024, the real estate market tells us much about resilience and adaptability of buyers and sellers alike, standing at the precipice of new opportunities with the dawning of 2025. Stakeholders will be watching closely how economic indicators, coupled with real-time trends, shape the housing narrative moving forward.