The Agency Red Paper 2024 Annual Market & Wealth Report by The Agency

A MATCH OF STRENGTH AND STRATEGY

2024 ANNUAL REPORT

THE AGENCY RED PAPER

THE RED PAPER 2023

Contributors Managing Editors & Writers Laura Corrigan, SVP of Public Relations & Communications, The Agency Nicole Montgomery, VP of Marketing & Content, The Agency Andrea Delgado, Director of Public Relations, The Agency Sarah Jansen-Mount, Senior Copywriter, The Agency Carolyn Meers, Senior Copywriter, The Agency Contributing Writers Paul Jebara Irene Rawlings Daniel Arias, Team Leader, New American Funding Creative Design Shane Gazzo, Creative Director, The Agency Sara Reitenbach, Senior Graphic Designer, The Agency Research & Data Erin Kennelly, Founder, The Kennelly Group Nikki Etebari, Senior Research Analyst, The Kennelly Group

THE RED PAPER 2023

TABLE OF CONTENTS AN INTRODUCTION

Year In Review: The Opening Gambit

MORTGAGE & HOUSING OUTLOOK

Navigating the Real Estate Chessboard: A Challenging & Persistent Game

DATA & ANALYSIS

Global Market Reports United States Canada Europe Mexico Caribbean Central America

WEALTH REPORT

52 54 56 66

Market Migration & Buyer Trends Gen Z Has Entered the Real Estate Game Consumer Spending: The Paradox of Resilient Luxury The Zeitgeist: Design Trends

COMPANY NEWS & UPDATES

The Agency Highlights The Agency Development Group Sales Year in Review The Agency’s Top Awards and Rankings Company Growth & Expansion Events Marketing The Year in Social Media Relocation Core Services Philanthropy

An Introduction

YEAR IN REVIEW: THE OPENING GAMBIT Gambit: An opening in which a player offers to give up a piece, usually a pawn, in favor of a positional advantage. As another year begins, we find ourselves in the most unique real estate market in half a century. Visually, the market resembles that of a chessboard, where strategic moves dictate the course of the game, and everyone is skillfully calculating their next play. Following the historic real estate boom that buoyed the economy after the global pandemic, the market continued its pullback in 2023. However, the economy’s overall health, including the jobs market, remained strong as inflation continued to cool. When 2023 began, there was much talk of a recession and a debate about whether home prices would fall. Well, you could call it the recession that wasn’t, and as we predicted, home prices held steady. So, why aren’t we celebrating? The Stalemate While home prices remained stable, mortgage rates and low inventory led to the slowestmoving market in decades.

The lock-in effect sidelined homeowners holding on to historically low mortgage rates with little motivation to sell. With lower mortgage payments, they enjoyed more disposable income and used it, keeping consumer spending on the rise. However, buyers were left on the sidelines, as humble pawns, waiting for mortgage rates and prices to drop and new inventory to present itself. Much like a game of chess, in 2023, we found ourselves in a stalemate. In 2024, the question to ask is: Who will gain the upper hand? And more importantly, when? A Match of Strength & Strategy In preparing our annual Red Paper, the chessboard was a constant theme as the need for strength, strategy and patience resonated across our global markets, which saw overall sales decrease. Relief is expected in 2024, not necessarily in pricing or inventory, but in rates and overall market movement. At the end of 2023, we saw some relief

on the buyer’s side, as sellers made concessions to reach the closing mark, mortgage rates trended downward and mortgage applications began to rise. In its last meeting of the year, the Fed announced a pause in rate hikes and penciled in three rate cuts in 2024. Gear up for your next move and what to expect in the year ahead in our Mortgage and Housing Outlook on page 10. A Global Game In the grand chessboard of global real estate, the moves varied across continents. In Canada, interest rates also remained high, while the two-year nationwide restriction on foreign home purchases continued stymying would-be buyers from abroad. Europe experienced more stubborn inflation, though Americans came in droves, buying up more real estate there than ever before, especially in markets such as Portugal and Spain. Resort markets worldwide, such as those in Mexico, Central America

THE RED PAPER 2023

and the Caribbean, remained wildly popular as buyers continued the COVID-era trend of working remotely, enjoying the lifestyle these destinations provide. Meanwhile, China’s decision to lift its travel ban may play a pivotal role in influencing the movement of global buyers, leaving the U.S. and other markets in an anticipatory state as they await the next move in 2024. Read more about market trends and migrations in the Red Paper Wealth Report on page 52.

estate sales over $5 million. Well-priced, well-positioned and move-in-ready homes were the hottest commodities among high-net-worth buyers, who were the true knights of the game. These power players survived the storm and skilfully charted their course, leveraging global dynamics to amass more significant influence. Delve further into luxury consumer spending trends in The Red Paper Wealth Report on page 57.

Knights of Influence

As we begin a new year, opportunity is plentiful. If there’s one thing The Agency has always excelled at, it’s rising to a challenge and seizing opportunities. Market shifts are the norm in real estate, and we continue to do what we do best: guide our clients through every twist and turn. 2023 was a record year for growth as The Agency entered 29 new markets, including some of the world’s most coveted destinations and thriving metropolises. We

As for the luxury market, mortgage rates had less impact than the Hollywood strikes, which thankfully saw a resolution by year’s end. More high-end buyers used cash instead of financing their purchases, though a pullback in rates could keep the luxury market from cooling in 2024. Moves by international and local governments made ripples at the high end of the market, such as L.A.’s “Mansion Tax,” which added a fee to real

The Endgame

continued to lead the industry with the most productive agents in real estate, who proved their value among buyers and sellers, serving as key local strategists and experts. The Red Paper takes a deep dive into the year gone by and anticipates what to expect in the year ahead. Once again, it’s clear real estate is much more than a numbers game. The desire to own a home remains strong, and homeownership continues to be one of the meaningful and strategic paths to wealth creation. How you make your next move is where we come in. Checkmate.

Mauricio Umansky

Rainy Hake Austin

FOUNDER & CEO THE AGENCY

PRESIDENT THE AGENCY

MORTGAGE & HOUSING OUTLOOK 8

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Mortgage & Housing Outlook

NAVIGATING THE REAL ESTATE CHESSBOARD: A CHALLENGING & PERSISTENT GAME WRITTEN BY DANIEL ARIAS INSIGHTS FROM OUR MORTGAGE PARTNERS AT NEW AMERICAN FUNDING

Persistent, challenging, and turbulent are just a few words that describe the mortgage and housing market of 2023. As we entered 2023, the future of the economy, housing market, and mortgage environment were extremely opaque, with many questions circulating after the Federal Reserve hiked the federal funds rate at an unprecedented pace in 2022. Picture the real estate industry's chessboard of uncertainty, where critical questions loomed like kings on the brink: How high would the Fed dare to elevate interest rates? Can the Fed get the inflation genie back in the bottle? Will the jobs market remain robust? Was the ominous shadow of a recession looming on the horizon? What happens to mortgage rates? Will home prices crash? And ultimately, what does it all mean for mortgage and housing demand? Although we may not have always been satisfied with the answers to

those questions that developed throughout the course of the year, at least we now have answers that we can leverage in our framework for understanding the path ahead in 2024.

The Fed appears well positioned to get the inflation genie back in the bottle while doing minimal damage to the economy to return inflation to its 2 percent target. The Fed: Battling Inflation Say what you will about the Fed, but everything starts and ends with the monetary policy decisions they set. Most of the time, critics are quick to call out the Fed for raising or cutting rates too late. However, “hindsight is 20/20.” The Fed has a tough job with

much at stake for the decisions they make, so of course they want to measure twice and cut once by remaining data-dependent in their actions. So far, so good. Since peaking at 5.57 percent in February 2022, Core PCE (the Fed’s preferred inflation metric that excludes volatile food and energy components) fell to 3.68 percent in September 2023 with the Fed projecting a further fall to 2.6 percent at the end of 2024, and 2.3 percent at the end of 2025 before hitting their target of 2 percent by the end of 2026. While there is a lag between tightening financial conditions and labor market conditions (the other half of the Fed’s dual mandate to stabilize prices and maximize employment), the jobs market remains resilient. The unemployment rate ticked up to 3.9 percent in October 2023 from the near historical low of 3.4 percent set in April 2023 and well below the full employment

THE RED PAPER 2023

The likely result is 30-year mortgage rates remaining range bound in the 6s in 2024, but not falling below the 6 percent mark barring some unforeseen event. is exactly what we experienced as the spread widened and has remained closer to 300-basis points (or 3.0 percent) which is why today, a 10-year treasury yield of 3.93 percent (at the time of this writing) has resulted in 30-year mortgage rates closer to 7% percent instead of 5.99 percent.

unemployment rate, which is considered by most economists to be 5 percent. You would have to go back to the 1950s to find lower unemployment rate levels. Taking these indicators in combination means that the Fed has time to hold interest rates higher for longer and that is exactly how market participants see things playing out in 2024, with the Fed already likely having reached their terminal fed funds rate target range of 5.25–5.50 percent while pricing in an estimated 3 rate cuts (25 bps each) in the second half of 2024.

Mortgage Rates: The Numbers to Watch Investor sentiment and appetite for 10-year treasury bonds are what mortgage participants are most keen to keep an eye on as appetite for mortgage-backed securities and their yield is offered at a risk premium to the 10-year that sets the stage for 30-year mortgage rates. That risk premium or spread has historically averaged 160 basis points (or 1.6 percent). However, during periods of economic uncertainty and bond market volatility, the spread tends to widen. Over the course of 2023 that

Going forward, we anticipate the spread to tighten once again with recent volatility in the bond market likely to diminish as the Fed shifts away from its rate-hiking campaign. Yet, we don't anticipate a return to the 160-basis point spread in the short run due to the higher-for-longer narrative and the Fed's continued pressure on mortgage-backed securities prices through its passive balance sheet run-off. This is despite an anticipated economic growth slowdown, leading consumers and businesses to confront tighter financial conditions that should persistently exert modest downward pressure on 10-year yields as investors reposition. The likely result is 30-year mortgage rates remaining range bound in the 6s in 2024, but not falling below the 6 percent mark barring some unforeseen event.

Mortgage Market: Purchases & Refinancing to Rise Demand for refinance mortgage loans remained non-existent after all but evaporating in 2022, as refinance applications nationally sputtered near record lows not seen since the year 2000. Cash-out refinances remained a limited area of opportunity for lenders given record levels of home equity among current homeowners. However, just like rate and term refinances, cash-out refinances seem to only be leveraged out of necessity presently. As households continue to feel the pinch on their finances and if rates decline as expected in 2024, enticing recent homebuyers to improve their financial position, we should see an uptick in the new year. This is precisely why forecasters hope to see refinances rising by approximately 56 percent year over year, growing from a $314 to $490 billion market, according to the Mortgage Bankers Association. As for the purchase side of the mortgage market landscape, activity remained muted, with purchase applications falling to historically low levels not seen since the year 1995. Unlike the refinance market, the low levels of purchase mortgage activity were not attributed to the demand side of the equation, but rather the supply side of the equation by way of a limited number of homes for sale. The unintended consequence of an abrupt rise in mortgage rates forced the nearly 40 percent of homeowners that own their home free and clear— along with 80 percent of current mortgage holders having locked-

in mortgage rates below 5 percent with an overall effective mortgage rate on outstanding mortgage debt of 3.74 percent—to reconsider listing their homes for sale. This put downward pressure on new listings, suppressing inventory levels and therefore home sales, shrinking the pie of opportunity for lenders to serve. In addition to fewer home sales, rising rates have translated to more favorable conditions for all-cash deals, which rose to 36.6 percent of all single-family homes and condo sales in the third quarter of 2023. In 2024, these trends are likely to persist, resulting in a modest increase of 15 percent in purchase mortgage originations increasing the market size from $1.33 to $ 1.53 trillion. Housing Market: A Supply-Demand Imbalance The housing market can seem like a “riddle wrapped in a mystery inside an enigma” at times and 2023 certainly could be considered one of those times. Rising mortgage rates and a

continued rise in home prices at the same time have pushed homebuyer affordability to the lowest levels ever witnessed. As of September 2023, just 37.4 percent of new and existing homes sold between the beginning of July and the end of September were affordable to families earning the U.S. median income of $96,300.

All goes back to the imbalance that exists in the marketplace between supply and demand. There simply aren’t enough homes for sale to meet demand. Despite the deterioration in affordability that has seen a more than doubling in the median monthly mortgage payment since the pandemic, the market has remained competitive all year long. This was observed in

To meet the supply-demand imbalance the market has shifted toward one that is relying more heavily on new home sales. Homebuilders have seen their share of total home sales rise from a low of just 4.9 percent in May 2010 during the housing market crash to 17.9 percent in October 2023 and from 5.0 percent in July 2011 to 28.1

percent as a share of total home inventory. Heading into 2024, we expect more of the same. Home sales are to remain near current levels. While housing affordability remains a limiting factor for many, buyers would be wise to hang in as the market remains supplyconstrained while homebuilders attempt to fill the gap. How? By continuing to build and offer incentives to make the mortgage math work for prospective buyers. Home Prices: No Big Correction on the Horizon Nationally, we expect home prices to level off, as the market still has strong demographically driven demand with much of the U.S. population approaching the prime age for homebuying. Of course, some markets will drop slightly, and some will rise as local economies will ultimately determine the fate of their market’s home price trajectory. We expect market competition in desirable markets to remain steadfast, especially at the lower end of the home price tier. An annual home price growth rate

for 2024 in the 4 percent range is a reasonable outcome to assume. Buyers waiting for a significant home price correction are very likely to be disappointed.

THE RED PAPER 2023

various metrics, such as days on market, percent of homes off the market in two weeks, percent of homes sold above list price, average sale to list price, number of competing offers, and months’ supply just to name a few. The reason, as hinted above in our purchase mortgage outlook, all goes back to the imbalance that exists in the marketplace between supply and demand. There simply aren’t enough homes for sale to meet demand. In October 2023, the number of total homes for sale between new and existing stood at just 1.6 million below the pre-pandemic average of around 2 million and well below the all-time high of 4.6 million set during the great recession.

An annual home price growth rate for 2024 in the 4 percent range is a reasonable outcome to assume. Buyers waiting for a significant home price correction are very likely to be disappointed. To bridge the affordability gap, we expect to see increased reliance on adjustable-rate mortgages, low down payment loan programs such as government loans (FHA and VA), and downpayment assistance programs. In addition, we may see lenders loosen their guidelines and improve credit availability to attract prospective homebuyers in 2024. Mortgage loan performance remains pristine with mortgage delinquency rates and distressed property sales near all-time lows. In the end, the desire to own a home is strong and has stood the test of time. Homeownership is often the biggest ticket to wealth creation and the backbone of household finances. We don’t anticipate that changing in 2024.

GLOBAL MARKET REPORTS 14

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UNITED STATES Single-Family Residences

Annual Existing Home Sales Home sales across the county slowed significantly compared to previous years. Seasonality plays a significant role in the number of sales in any given month, with spring through early summer typically being the strongest season for home sales. While we saw these seasonal patterns take a pause from regularity during Covid-19, they’ve begun to return, with the rate of sales significantly decreasing compared to pandemic times. 6,000,000

3,744,000

5,000,000

4,000,000

3,000,000

2,000,000

1,000,000

0 ‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 ‘21 ‘22 ‘23

-16.4%

CHANGE IN SALES VS. 1 YEAR AGO

-21.0%

CHANGE IN SALES VS. 5 YEAR AGO

-16.5%

CHANGE IN SALES VS. 10 YEAR AGO

Data Source: NAR. Data through September 2023. Price changes are calculated by comparing the September median to the same month in previous years. Change in number of sales calculated by comparing sales from the last twelve months ending in September to the same period in previous years.

Despite the downward trend in sales, median prices have continued to show price increases as a long-term trend over the past 20 years. Prices are now over 100% higher than the same period 10 years ago. A majority of that gain was realized over the last five years, particularly during the height of the Covid-era housing boom. $450,000

THE RED PAPER 2023

Monthly Existing Median Sale Price

$399,200

$400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 ‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 ‘21 ‘22 ‘23

2.5%

54%

CHANGE IN PRICE VS. 1 YEAR AGO

101.1%

CHANGE IN PRICE VS. 5 YEAR AGO

CHANGE IN PRICE VS. 10 YEAR AGO

Annual Existing Months of Inventory The existing single-family housing supply throughout 2023 stood at around 3.4 months of inventory. While months of inventory was much less than five and ten years ago when the market was still coming out of the aftermath of the housing bust, it was higher than a year ago. An interesting dynamic currently seen on the supply side is slower sales, in light of a shifting mortgage and economic environment, as well as less supply overall as more homeowners are unwilling to give up favorable interest rates locked in during 2020 through early 2022 for today’s 7 percent rates. Six months is considered the equilibrium between a buyer’s and seller’s market. 12.0 10.0 8.0 6.0 3.0

4.0 2.0 0.0 ‘99

-11.1%

‘00

‘01

‘02

‘03

1 YEAR MOI CHANGE

‘04

‘05

‘06

‘07

‘08

‘09

-25.0%

‘10

‘11

‘12

5 YEAR MOI CHANGE

‘13

‘14

‘15

‘16

‘17

‘18

-38.8%

‘19

‘20

‘21

‘22

‘23

10 YEAR MOI CHANGE

UNITED STATES Condominium Residences

Annual Existing Home Sales Much like the larger single-family home market, the condo market has recorded a substantial contraction in sales activity during 2023. Condo sales for the period were nearly down by a third compared to one, five and ten years ago. The condominium market experiences its highest sales consistently in spring and early summer. 10,000,000 9,000,000 8,000,000 7,000,000 436,000

6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0

‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 ‘21 ‘22 ‘23

-20.1%

CHANGE IN SALES VS. 1 YEAR AGO

-27.5%

CHANGE IN SALES VS. 5 YEAR AGO

-27.7%

CHANGE IN SALES VS. 10 YEAR AGO

The existing condominium market has seen a substantial appreciation in price over the last ten years. Prices today stand 78 percent higher than the same month ten years ago and 6.8 percent higher than one year ago. Prices hit their peak in June 2023 at $363,200. $400,000

THE RED PAPER 2023

Monthly Existing Median Sale Price

$353,800

$350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 ‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 ‘21 ‘22 ‘23

6.8%

48.7%

CHANGE IN PRICE VS. 1 YEAR AGO

78.0%

CHANGE IN PRICE VS. 5 YEAR AGO

CHANGE IN PRICE VS. 10 YEAR AGO

Annual Existing Months of Inventory The year ended with 3.7 months of existing condo inventory on the market. This is 12 percent higher than a year ago, but much lower than five and ten years ago. 16.0 14.0 12.0 10.0 8.0 6.0 3.3

4.0 2.0 0.0 ‘99

17.9%

‘00

‘01

‘02

‘03

1 YEAR MOI CHANGE

‘04

‘05

‘06

‘07

‘08

‘09

-19.5%

‘10

‘11

‘12

5 YEAR MOI CHANGE

‘13

‘14

‘15

‘16

‘17

‘18

-29.8%

‘19

‘20

‘21

‘22

‘23

10 YEAR MOI CHANGE

WEST Single-Family Residences

Annual Existing Home Sales The single-family home market here has experienced the most notable slowdown of the four regions over the last year (30.4 percent).

1,600,000

1,400,000

1,200,000

669,000

800,000

600,000

400,000

200,000

0 ‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 ‘21 ‘22 ‘23

-20.6% 22

CHANGE IN SALES VS. 1 YEAR AGO

-32.9%

CHANGE IN SALES VS. 5 YEAR AGO

-36.1%

CHANGE IN SALES VS. 10 YEAR AGO

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ALASKA, ARIZONA, CALIFORNIA, COLORADO, HAWAII, IDAHO, MONTANA, NEVADA, NEW MEXICO, OREGON, UTAH, WASHINGTON AND WYOMING.

Monthly Existing Median Sale Price Home prices in the West were some of the most expensive in the country. The median existing sale price ($620,200) was 55 percent higher than the national level ($399,200). The region recorded the strongest price appreciation over the last ten years. $700,000

$620,200

$600,000

$500,000

$400,000

$300,000

$200,000

$100,000

0 $0 ‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 ‘21 ‘22 ‘23

1.8%

CHANGE IN PRICE VS. 1 YEAR AGO

59.5%

CHANGE IN PRICE VS. 5 YEAR AGO

116.8%

CHANGE IN PRICE VS. 10 YEAR AGO

WEST Condominium Residences

Annual Existing Home Sales Sales activity for condominiums in the West mirrored the single-family home segment, although the market is much smaller. Sales fell by nearly the same share over the one-, five- and ten-year period.

180,000 160,000 140,000 120,000 90,000

100,000 80,000 60,000 40,000 20,000 0

‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 ‘21 ‘22 ‘23

-21.7% 24

CHANGE IN SALES VS. 1 YEAR AGO

-36.2%

CHANGE IN SALES VS. 5 YEAR AGO

-36.2%

CHANGE IN SALES VS. 10 YEAR AGO

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ALASKA, ARIZONA, CALIFORNIA, COLORADO, HAWAII, IDAHO, MONTANA, NEVADA, NEW MEXICO, OREGON, UTAH, WASHINGTON AND WYOMING.

Monthly Existing Median Sale Price Like the single-family market, median condo prices in the West were the most expensive of any region. The median sale price ($509,200) is 44 percent higher than the national level ($353,800). Condo prices were also higher than the median single-family home prices of the other three regions. $600,000 $509,200 $500,000

$400,000

$300,000

$200,000

$100,000

0 $0 ‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 ‘21 ‘22 ‘23

4.8%

CHANGE IN PRICE VS. 1 YEAR AGO

38.5%

CHANGE IN PRICE VS. 5 YEAR AGO

95.8%

CHANGE IN PRICE VS. 10 YEAR AGO

MIDWEST Single-Family Residences

Annual Existing Home Sales Sales during 2023 fell by 22.8 percent compared to the previous twelve-month period. Barring the period during the housing recession, home sales in the Midwest typically hit over 100,000 per month during the peak season (Spring/early Summer). The most recent 12-month period, ending in September 2023, was the first time in over a decade that sales didn’t average over 100,000 a month during this time. 1,600,000 1,400,000 1,200,000 943,000

1,000,000 800,000 600,000 400,000 200,000

0 ‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 ‘21 ‘22 ‘23

-15.7% 26

CHANGE IN SALES VS. 1 YEAR AGO

-20.9%

CHANGE IN SALES VS. 5 YEAR AGO

-16.0%

CHANGE IN SALES VS. 10 YEAR AGO

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ILLINOIS, INDIANA, IOWA, KANSAS, MICHIGAN, MINNESOTA, MISSOURI, OHIO, NORTH DAKOTA, NEBRASKA, SOUTH DAKOTA, AND WISCONSIN.

Monthly Existing Median Sale Price Home prices in the Midwest consistently peak in June or July. This year, July prices hit a peak of $484,300. Since then, prices trended downward, but remained well above levels recorded one, five and ten years ago. The median sale price for a home in 2023 was about 4.4 percent higher than the same month one year ago. $350,000 $295,900 $300,000

$250,000

$200,000

$150,000

$100,000

$50,000

0 $0 ‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 ‘21 ‘22 ‘23

4.4%

CHANGE IN PRICE VS. 1 YEAR AGO

47.4%

CHANGE IN PRICE VS. 5 YEAR AGO

86.8%

CHANGE IN PRICE VS. 10 YEAR AGO

MIDWEST Condominium Residences

Annual Existing Home Sales Condominium sales in the Midwest were down 27.2 percent compared to a year ago. Condo sales averaged about 7,000 per month.

200,000 180,000 160,000 140,000 120,000 100,000 59,000

80,000 60,000 40,000 20,000 0

‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 ‘21 ‘22 ‘23

-20.3% 28

CHANGE IN SALES VS. 1 YEAR AGO

-23.4%

CHANGE IN SALES VS. 5 YEAR AGO

-25.3%

CHANGE IN SALES VS. 10 YEAR AGO

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ILLINOIS, INDIANA, IOWA, KANSAS, MICHIGAN, MINNESOTA, MISSOURI, OHIO, NORTH DAKOTA, NEBRASKA, SOUTH DAKOTA, AND WISCONSIN.

Monthly Existing Median Sale Price Condominium prices in the Midwest averaged $247,500. This was 8 percent higher than a year ago and 73 percent higher than 10 years ago.

$300,000 $247,500 $250,000

$200,000

$150,000

$100,000

$50,000

0 $0 ‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 ‘21 ‘22 ‘23

8.0%

CHANGE IN PRICE VS. 1 YEAR AGO

41.0%

CHANGE IN PRICE VS. 5 YEAR AGO

73.1%

CHANGE IN PRICE VS. 10 YEAR AGO

SOUTH Single-Family Residences

Annual Existing Home Sales This sub-market comprises some of the states with the fastest growth over the last few years. Although sales volume has decreased over the last 12 months, the slowdown has been much more muted compared to the other three regions. Some of the fastest-growing states in the country include Florida, South Carolina and Texas.

3,000,000

1,709,000

2,500,000

2,000,000

1,500,000

1,000,000 0 ‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 ‘21 ‘22 ‘23

-14.4% 30

CHANGE IN SALES VS. 1 YEAR AGO

-13.3%

CHANGE IN SALES VS. 5 YEAR AGO

-3.7%

CHANGE IN SALES VS. 10 YEAR AGO

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ALABAMA, ARKANSAS, DELAWARE, FLORIDA, GEORGIA, KENTUCKY, LOUISIANA, MARYLAND, MISSISSIPPI, NORTH CAROLINA, OKLAHOMA, SOUTH CAROLINA, TENNESSEE, TEXAS, VIRGINIA AND WEST VIRGINIA.

Monthly Existing Median Sale Price Median existing home prices in the south have more than doubled over the last 10 years. Aa large share of that growth happened between 2020 and 2022. Prices still appreciated in 2023 (2.8 percent in September 2023 versus a year earlier); however, the pace of growth slowed. $366,900

$400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 0 $0

‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 ‘21 ‘22 ‘23

2.8%

CHANGE IN PRICE VS. 1 YEAR AGO

60.4%

CHANGE IN PRICE VS. 5 YEAR AGO

109.8%

CHANGE IN PRICE VS. 10 YEAR AGO

SOUTH Condominium Residences

Annual Existing Home Sales The condominium market in the south did not perform as well as the single-family market. This segment recorded a more notable 29.1 percent decrease in sales activity compared to the previous year—the same trend was seen when comparing sales volume on a five- and ten-year basis. 400,000 350,000 300,000 202,000

250,000 200,000 150,000 100,000 50,000

0 ‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 ‘21 ‘22 ‘23

-20.2% 32

CHANGE IN SALES VS. 1 YEAR AGO

-26.0%

CHANGE IN SALES VS. 5 YEAR AGO

-23.8%

CHANGE IN SALES VS. 10 YEAR AGO

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ALABAMA, ARKANSAS, DELAWARE, FLORIDA, GEORGIA, KENTUCKY, LOUISIANA, MARYLAND, MISSISSIPPI, NORTH CAROLINA, OKLAHOMA, SOUTH CAROLINA, TENNESSEE, TEXAS, VIRGINIA AND WEST VIRGINIA.

Monthly Existing Median Sale Price Condominium prices, on the other hand, continued to appreciate despite a slowdown in sales. Of the four regions, the South saw the most notable price appreciation over the last ten years (102.5 percent).

$350,000

$308,600

$300,000

$250,000

$200,000

$150,000

$100,000

$50,000

0 $0 ‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 ‘21 ‘22 ‘23

6.9%

CHANGE IN PRICE VS. 1 YEAR AGO

68.1%

CHANGE IN PRICE VS. 5 YEAR AGO

102.5%

CHANGE IN PRICE VS. 10 YEAR AGO

NORTHEAST Single-Family Residences

Annual Existing Home Sales The number of existing home sales in this region was down 25.5 percent compared to a year ago. The trend was similar when compared to five and ten years ago as well.

9,000,000 8,000,000 7,000,000 6,000,000 423,000

5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0

‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 ‘21 ‘22 ‘23

-18.8% 34

CHANGE IN SALES VS. 1 YEAR AGO

-27.2%

CHANGE IN SALES VS. 5 YEAR AGO

-21.7%

CHANGE IN SALES VS. 10 YEAR AGO

THE RED PAPER 2023

CONNECTICUT, MAINE, MASSACHUSETTS, NEW HAMPSHIRE, NEW JERSEY, NEW YORK, PENNSYLVANIA, RHODE ISLAND AND VERMONT.

Monthly Existing Median Sale Price Despite the slowdown in home sales, prices trended in the opposite direction—up 4.8 percent from a year ago. The region’s elevated pricing reflects a constrained inventory that stokes competition among buyers.

$600,000

$500,000

$449,200

$400,000

$300,000

$200,000

$100,000

$0 0 ‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 ‘21 ‘22 ‘23

4.8%

CHANGE IN PRICE VS. 1 YEAR AGO

55.8%

CHANGE IN PRICE VS. 5 YEAR AGO

91.1%

CHANGE IN PRICE VS. 10 YEAR AGO

NORTHEAST Condominium Residences

Annual Existing Home Sales The condominium market in the Northeast paralleled that of the single-family home market. Sales fell by about a quarter compared to a year earlier. Overall, sales over the last ten years were much lower than their peak in the run-up to the housing bust. At that time, sales routinely topped 20,000 per month. 350,000

300,000

250,000

200,000

150,000 85,000

100,000

50,000

0 ‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 ‘21 ‘22 ‘23

-18.3% 36

CHANGE IN SALES VS. 1 YEAR AGO

-22.7%

CHANGE IN SALES VS. 5 YEAR AGO

-28.0%

CHANGE IN SALES VS. 10 YEAR AGO

THE RED PAPER 2023

CONNECTICUT, MAINE, MASSACHUSETTS, NEW HAMPSHIRE, NEW JERSEY, NEW YORK, PENNSYLVANIA, RHODE ISLAND AND VERMONT.

Monthly Existing Median Sale Price Prices for condominiums in the Northeast have been on a strong upward trend over the last ten years. At the end of the year, they stood 56.8 percent higher than in 2013. Prices peaked at $432,000 in July 2023.

$500,000 $450,000

$397,400

$400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 0 ‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 ‘21 ‘22 ‘23

8.3%

CHANGE IN PRICE VS. 1 YEAR AGO

44.6%

CHANGE IN PRICE VS. 5 YEAR AGO

56.8%

CHANGE IN PRICE VS. 10 YEAR AGO

Real estate activity across Canada slowed substantially over the last year. Compared to the previous year, the 12-month period ending in October 2023 recorded an 18.2% decrease in home sales. While the slowdown was less marked when compared to five and ten years ago, monthly sales were well below their 10-year average as well as pre-pandemic levels. Alberta, British Columbia and Ontario all recorded outsized declines, helping drive the lower national stats. Like in the U.S., the Canadian market was weighed down by high interest rates and declining affordability. Another possible contributor was the Prohibition on the Purchase of Residential Property by Non-Canadians Act, a law banning residential property purchases by people who are not Canadian citizens or permanent residents between January 1st, 2023 and January 1st, 2025, especially in more urban areas.

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Canada: Residential Sales Activity

700,000 10 YR AVERAGE 441,301

600,000 500,000 400,000 300,000 200,000 100,000 0 ‘07

-11.6%

‘08

‘09

‘10

‘11

‘12

‘13

-4.3%

CHANGE IN SALES VS. 1 YEAR AGO

‘14

‘15

‘16

‘17

‘18

‘19

-3.4%

CHANGE IN SALES VS. 5 YEAR AGO

‘20

‘21

‘22

‘23

CHANGE IN SALES VS. 10 YEAR AGO

Canada: Months of Inventory Months of inventory across Canada stood at 4.1 months in October 2023. The increase year-over-year was largely attributed to the substantial slowdown in sales activity. While inventory was above the five-year average (3.8), it was below the longer-term average of five months.

4.1

10.0 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 JAN ‘18

APR ‘18

10.0%

JUL ‘18

OCT ‘18

JAN ‘19

APR ‘19

1 YEAR MOI CHANGE

JUL ‘19

OCT ‘19

JAN ‘20

APR ‘20

JUL ‘20

-23.9%

OCT ‘20

JAN ‘21

APR ‘21

JUL ‘21

OCT ‘21

JAN ‘22

APR ‘22

JUL ‘22

OCT ‘22

JAN ‘23

APR ‘23

JUL ‘23

OCT ‘23

5 YEAR MOI CHANGE

Canada: Median Price Price appreciation in Canada has slowed since the pandemic-era boom though they remain elevated. The year-over-year change in average price is 1.8% compared to 30.2% on a five-year basis and 67.2% on a ten-year basis. British Columbia and Ontario are the most expensive markets in the country. Looking by individual markets, Nova Scotia, New Brunswick and Quebec recorded the strongest year-over-year appreciation in October 2023. Yukon and the Northwest Territories were the only two areas that recorded a decline in average price. $900,000

$656,625

$800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 0 ‘05

-1.8%

‘06

‘07

‘08

CHANGE IN PRICE VS. 1 YEAR AGO

‘09

‘10

‘11

‘12

32.2%

‘13

‘14

‘15

‘16

CHANGE IN PRICE VS. 5 YEAR AGO

‘17

‘18

‘19

67.2%

‘20

‘21

‘22

‘23

CHANGE IN PRICE VS. 10 YEAR AGO

Oct '23

Oct '22

YOY Change

BRITISH COLUMBIA

$967,221

$930,418

4.0%

ALBERTA

$451,839

$430,491

5.0%

MANITOBA

$334,478

$332,200

0.7%

ONTARIO

$855,990

$833,092

2.7%

QUEBEC

$490,504

$467,849

4.8%

NEW BRUNSWICK

$293,100

$272,800

7.4%

NOVA SCOTIA

$402,500

$369,100

9.0%

PRICE EDWARD ISLAND

$364,100

$357,100

2.0%

NEWFOUNDLAND & LABRADOR

$292,400

$281,300

3.9%

YUKON

$461,970

$519,035

-11.0%

Area

Data Source: The Canadian Real Estate Association. Moody’s Analytics. Data through October 2023. Price changes are calculated by comparing the October average to the same month in previous years. Change in number of sales calculated by comparing sales from the last twelve months ending in October to the same period in previous years.

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Europe: Home Price Index Home prices in the European Union were down 1.1% in the second quarter of 2023, the most recent period with available data, compared with the same quarter of 2022. Within this period, Portugal saw the highest appreciation in home prices. Some saw a year-over-year decrease in second-quarter prices with Germany and Portugal recording the biggest declines. The chart below illustrates the trend in the Home Price Index since the third quarter of 2020. The base year in this analysis is 2015.

220.0

PORTUGAL 200.0

NETHERLANDS

180.0

160.0 GERMANY SPAIN 140.0 FRANCE 120.0 ITALY 100.0

0.0 Q3 2020

Q4 2020

Q1 2021

Q2 2021

Q3 2021

Q4 2021

Q1 2022

Q2 2022

Q3 2022

Q4 2022

Q1 2023

Q2 2023

BASE YEAR: 2015 = 100 Q3 2020 - Q2 2023

Data Source: Eurostat. The House Price Index (HPI) measures price changes of all residential properties purchased by households (flats, detached houses, terraced houses, etc.), both new and existing, independently of their final use and their previous owners. Only market prices are considered, self-build dwellings are therefore excluded. The land component is included. The European Union Countries are: The EU countries are: Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden.

The table below illustrates the quarterly home sales index across select European countries. Due to the seasonal nature of home sales, changes between each quarter tend to be volatile. The Home Sales Index for the third quarter of 2023, the most recent period with available data, was down across all markets tracked compared with the same period in 2022.

THE RED PAPER 2023

Europe: Home Sales Index

240.0 220.0 200.0 180.0

SPAIN

160.0 PORTUGAL 140.0 120.0

FRANCE

100.0

NETHERLANDS

80.0 60.0 40.0 20.0 0.0 Q3 2020

Q4 2020

Q1 2021

Q2 2021

Q3 2021

Q4 2021

Q1 2022

Q2 2022

Q3 2022

Q4 2022

Q1 2023

Q2 2023

BASE YEAR: 2015 = 100 Q3 2020 - Q2 2023

Data Source: Eurostat. The Home Sales Index measures the total number of purchases of newly built and existing dwellings. The selected markets covered reflect European Union countries for which there is available data over the thirteen-quarter period. The countries included are Austria, Belgium, Denmark, Finland, France, Hungary, Ireland, Luxembourg, Netherlands, Portugal, Slovenia and Spain.

Home prices across Mexico’s highly desirable resort markets continued to rise in 2023. During the $250,000 second quarter of the year, home prices nationwide increased by 11.5 percent compared to the same period in 2022. Baja California Sur and Quintana Roo saw the biggest price appreciation during Q3 2023. $200,000 Overall, Mexico City and Nayarit are among the most expensive markets in the country.

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Mexico: Average Home Price

$150,000

$100,000

$50,000

$0 MEXICO CITY

NAYARIT

BAJA CALIFORNIA SUR

JALISCO

QUINTANA ROO

GUANAJUATO

PRICED IN USD • CONVERSION: 11 USD = 17.2 MXN

Mexico: Home Price Index 20.0 BAJA CALIFORNIA SUR

18.0

QUINTANA ROO

16.0

NAYARIT

14.0

JALISCO

12.0 10.0

GUANAJUATO 8.0 MEXICO

6.0 4.0 2.0 0.0 Q2 2022

Q3 2022

Q4 2022

Q2 2023

Data Source: OECD. Ministry of the Treasury and Public Credit (Mexico); Federal Mortgage Society (Mexico). Statista.

The Caribbean remains a hot destination market as it experiences significant growth in development, particularly for luxury real estate. Currently valued at approximately $1.7 trillion, the Caribbean real estate market is expected to reach a market volume of $2.17 trillion over the next five years—representing an annual growth rate of 5 percent. There were an estimated 72,000 sales in 2023, valuing $12.18 billion. Some of the most robust markets for luxury real estate are Turks & Caicos, The Bahamas, Cayman Islands and the Dominican Republic.

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Caribbean: Real Estate Sales

80 SALES (IN THOUSANDS)

71.95

60 50 40 30 20 10 0 2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2024

2025

2026

2027

2028

2024

2025

2026

2027

2028

(EST)

IN BILLION USD

Caribbean: Real Estate Transaction Value $20.00 $18.00 $16.00 $14.00 $12.00 $10.00 $8.00 $6.00 $4.00 $2.00 $0.00

$12.18

2017

2018

2019

2020

2021

2022

2023

(EST)

Caribbean: Value of the Real Estate Market $2.50

IN TRILLION USD

$2.00

$1.70

$1.50 $1.00 $0.50 $0.00 2017

2018

2019

2020

2021

2022

2023

(EST)

Data Source: Statista (as of April 2023)

Recent trends in the Central American residential markets include shifting preferences toward modern and sustainable housing options such as those that provide energy-efficient features and smart-home technology. The movement of people from rural areas to cities has also led to the proliferation of high-rise construction and mixed-use developments in major urban centers. Coastal enclaves across the region have also benefited from domestic and foreign investment as pricing here is more competitive and overall lower than surrounding vacation destinations such as the Caribbean. The value of the Central American real estate market is approximately $1.16 trillion. Over the next five years, it is expected to reach a market volume of $1.37 trillion, an annual growth rate of 3.38 percent. There were an estimated 70,200 sales in 2023, valuing $7.94 billion. 80

70.28

70 SALES (IN THOUSANDS)

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Central America: Real Estate Sales

60 50 40 30 20 10 0 2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2024

2025

2026

2027

2028

2024

2025

2026

2027

2028

(EST)

Central America: Real Estate Transaction Value $12.00

IN BILLION USD

$10.00 $8.00

$7.94

$6.00 $4.00 $2.00 $0.00 2017

2018

2019

2020

2021

2022

2023

(EST)

Central America: Value of the Real Estate Market $1.40 $1.16

$1.20

IN TRILLION USD

$1.00 $0.80 $0.60 $0.40 $0.20 $0.00 2017

2018

2019

2020

2021

2022

2023

(EST)

Data Source: Statista

WEALTH REPORT 50

THE RED PAPER 2023

Wealth Report

MARKET MIGRATION & BUYER TRENDS What are buyers seeking in a home? And what markets are they attracted to now? We surveyed our network of 2,000+ agents from around the globe to gather insight into how buyers and sellers are moving and migrating, and what it is they covet in a purchase. The Era of Hybrid Work Remote work is here to stay, reversing a decades-long flow of people to large cities. According to 2022-2023 Top Ten Issues Affecting Real Estate by the 501(c)6 The Counselors of Real Estate®, more than 50% of the workforce will work remotely or in a hybrid manner in the future. They are calling this “The Great Decentralization.” And this has changed the market by giving people the freedom to work from anywhere—even their vacation home in the mountains or at the beach. Second Homes + Golden Visas The ease of work from practically anywhere increased the popularity of the Golden Visa. This residencyby-investment program is offered by approximately 40 countries, including Greece, Portugal, Spain and Panama, making them top

destinations for both investors and lifestyle buyers. Requirements vary by country, but most require a real estate investment ranging from $300K to more than $1 million. “Investors can get a residency in 60-90 days,” says Victoria Levitam of The Agency Panama. Tax incentives, a lower cost of living, internationally renowned hospitals, and connectivity with nature are another big plus. Lifestyle First COVID-19 caused many people to reassess their work-life balance— prioritizing security, economic stability, access to nature, a family place in which to build memories and, in many cases, there’s been a renewed interest in multigenerational homes. According to our global team of experts, resortstyle residences offered by top hospitality groups (like Mandarin Oriental, Four Seasons and Aman) and luxury brands like Aston Martin and Baccarat remain very desirable.

like advanced air purification, circadian lighting systems, bestin-class water filtration systems and even vitamin C-infused showers. Paul Lester of The Agency Beverly Hills is seeing a heightened interest in amenities like saunas, steam showers, and hot-and-cold plunge pools. Aileen Comora of The Agency Beverly Hills, adds that some new builds include spa spaces that “look and feel like a 5-star resort.” Facts and Factors Marketing Research Co, Ltd. (an international research company based in Shanghai, China) estimates the global wellness real estate market was worth about $279.4 billion in 2021 and is expected to grow to about $863.9 billion by 2028. North America is projected to account for 37% of the market growth. These forecasts are corroborated by Ingo Schweder, Managing Director at Boston University-based Horwath HTL Health & Wellness.

Wellness & Sustainability

Stable Refuge from Global Chaos

Health-conscious homebuyers increasingly demand outdoor spaces, health-inspired kitchens, and green-living technologies

In times of global financial and geopolitical turmoil, homebuyers look for real estate markets that are consistent and predictable.

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“We are seeing money from China, Singapore, Hong Kong, and the Middle East being ‘parked’ in real estate in California as a holding place for wealth,” says Lester. Miami is also seeing a similar trend. “Instability in various of the South American countries continues to make Miami real estate very attractive,” says Daniel Tzinker, of The Agency Miami. “In the past three years,

we’ve seen 100+ businesses like Citadel, Amazon and Tesla move to Miami, taking advantage of the favorable tax environment…world-class restaurants, private clubs and art galleries have followed.” Turnkey = Easy Living Move-in ready homes are popular with buyers who have no time to do major upgrades. “Because of continuing supply-chain

challenges, many buyers prefer turnkey properties—sometimes fully furnished, down to the last butter knife—especially if this is their second or third home,” says Alby Euesden of The Agency Mallorca. The Agency makes a client’s move easy in many ways. “The agents who work in this office have been on the island for a long time and know everything from the finest schools to the best bakeries,” he adds.

Wealth Report

GEN Z HAS ENTERED THE REAL ESTATE GAME BY SARAH JANSEN-MOUNT

The first wave of Gen Z, the digitally native generation, has stepped into the realm of homeownership. With economic factors stabilizing and Gen Z constituting a substantial 20–25% of the population, the luxury real estate market is experiencing notable changes. Here’s what you need to know about this savvy group of buyers and sellers. They’re Digital Natives. Gen Z is the first generation to grow up in a fully digital age, surrounded by technology from a young age. Smartphones, social media and digital platforms—it’s the world they know. That means they skillfully leverage those same tools when it comes to buying and selling real estate. Their Entrepreneurial Spirit Shines. Growing up in a rapidly changing economic landscape, many Gen-Z individuals are proactive in seeking opportunities for side hustles, freelancing and entrepreneurship. Their game plan may look non-traditional. They Can Also be Pragmatic and Realistic. In contrast to the optimism associated with Millennials, Gen Z is often considered pragmatic and realistic. They have witnessed economic challenges and are more focused on practical solutions and financial stability. They want to make a smart choice, choosing long-term viability over short-term satisfaction.

It’s all about service and experience. Gen Z will most often research your online presence, profile and past customer reviews before they will meet you. They want concierge-level service beyond the transaction— including recommendations for services and insights into local amenities like parks, restaurants, and boutiques. JARED BL ANK, Managing Partner of The Agency Denver and Boulder

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They Carry a Global Awareness. While neighborhood and location remain pivotal, Gen-Z buyers prioritize sustainability. Solarpowered homes, integrated sustainable building materials and smart home integrations, such as WiFi-enabled appliances and thermostats, are becoming essential features. They’re Independent Learners. With easy access to information online, they’re resourceful and rely on self-directed learning, often seeking information through online sources, tutorials and educational platforms. They do their research —at their own pace—before they connect with an agent. They Engage with Compelling Content. Growing up in an era of constant information, notifications and distractions, Gen Z desires concise yet engaging content. So connect with them quickly and pique their interest. Financial Prudence Is Important to Them. Witnessing economic uncertainties and student loan challenges faced by Millennials, Gen Z tends to be more financially cautious. They are more likely to prioritize savings, budgeting and financial planning. As they are often still building their own personal wealth, it’s common for Gen-Zers to have their parents alongside them through real estate transactions as financial

In the city, we see Gen Z buyers seeking cool and unique over traditional. JOAN KAGAN, The Agency New York

support. This is the first time that Millennials have ever seen interest rates this high in their lifetime, which greatly affects their buying mentality. They Value Authenticity and Individual Expression. Gen Z values authenticity. They often seek personalized and unique experiences, both online and offline, and are drawn to brands and influencers that align with their values.

Gen-Z clients are drawn to an authentic online presence— generic content is a turnoff for this generation. They’re quick to discern insincerity and shy away from hard-selling tactics. Flexibility and Wellness. They tend to value flexibility in work and lifestyle, seeking a balance between personal and professional life. They seek out amenities like home gyms, saunas and outdoor spaces.

THE RED PAPER 2023

Wealth Report

CONSUMER SPENDING: THE PARADOX OF RESILIENT LUXURY BY PAUL JEBARA

How are luxury consumers actually spending their money? And why? From high-end timepieces to next-level home amenities, we interpret the motivations and meaning behind the behaviors of today’s high-net-worth consumers.

In today’s economic maelstrom where unpredictability reigns supreme, the ultra-highnet-worth (UHNW) elite stand as the unshakable captains of industry, deftly navigating through the tempest with a blend of resilience and foresight. In a striking display of economic resilience, the latest Altrata’s World Ultra Wealth Report 2023 unveils a paradox: a dip in the number of UHNW individuals, yet an unabated zeal for luxury. With fortunes exceeding $30 million, the cohort has shrunk by 5.4 percent, marking the most significant decline since 2015. Notwithstanding the dip, the group’s collective assets remain a formidable $45 trillion, averaging an impressive $51 million per individual, as per Wealth-X data.

Ultra-High-Net-Worth Population

The story gets even more colorful regionally: North America, traditionally the bastion of ultrawealth, saw a 4 percent reduction in its UHNW population in 2022, the most substantial in a decade. Europe, buffeted by inflation and geopolitical strife, experienced a 7.1 percent drop. Asia faced the sharpest decline, with a 10.9 percent fall in its ultrawealthy ranks. In contrast, India’s booming economy bucked the trend with a 3 percent increase, while the Middle East, Latin America, and the Caribbean saw notable growth in both UHNW numbers and net worth.

-4% -7.1% - 10.9% +3% NORTH AMERICA

EUROPE

ASIA

group within this echelon, are at the forefront of owning assets like private jets, blending business with luxury. Entrepreneurs, though fewer, make their mark with yachts and esteemed art collections. Inheritors, with a more subdued approach, show a deep connection to art, reflecting their heritage and cultural values. Bain & Company’s Luxury Goods Worldwide Market Study, produced in collaboration with the Altagamma Foundation, forecasts a bullish future for the luxury market. It’s projected to hit a staggering $1.6 trillion in 2023, an 8 to 10 percent increase from the previous year. The personal luxury goods segment, in particular, is expected to reach nearly $400 billion by year-end, surpassing 2022 figures by 4 percent.

A barometer of UHNW behavior, the high-stakes, high-aspiration sphere of asset ownership is increasingly diverse and dynamic. Executives, the largest

INDIA

Year-Over-Year Growth

+4%

2022-2023

+8%

CURRENT EXCHANGE RATE

CONSTANT EXCHANGE RATE

Global Personal Luxury Goods Market (€ BILLIONS) Source: Bain & Company

349 290

281

207

212

219

245

244

‘15

‘16

254

362

262 220

186

120

128

139

150

2003

‘07 DEMOCRATIZATION

161

167

159

147

‘08

‘09 CRISIS

‘10

‘14 CHINESE ACCELERATION

REBOOT

‘17

‘19 NEW NORMAL

‘20 COVID CRISIS & REBOUND

‘22

‘23E NORMALIZATION?

Bain’s Claudia D’Arpizio encapsulates this shift as a blend of “resilience, relevance, and renewal”—the new bedrock of a value-centric luxury ethos enriched by the experiential, such as bespoke travel, personalized wellness, and access to exclusive events. In this new era, the convergence of technology and luxury is pivotal. Blockchain, artificial intelligence, and digital platforms are becoming integral to the luxury narrative. The rise of digital art, virtual experiences, and cryptocurrencies marks a new chapter where technology and luxury intertwine, offering unparalleled experiences. This digital evolution is expected to reshape the luxury market by 2030, with online and monobrand channels dominating the market share. Projections suggest a rise to 528,100 UHNW individuals and $60.3 trillion in total assets over the next five years. Asia is poised to lead this growth, while North America and Europe maintain significant stakes. In a world where change is the only

constant, the ultra-wealthy are not just surviving the storm; they are skillfully charting their course, leveraging global dynamics to amass even greater wealth and influence. Key Luxury Spotlight: Timepieces with a Tale In the high-stakes world of luxury investments, high-end timepieces are capturing the imagination of young, affluent collectors like never before. The year 2022 marked a noteworthy milestone, with these exquisite wristwatches ascending to third place in the Knight Frank Luxury Investment Index (KFLII), boasting an 18 percent increase in value. Picture the electric atmosphere in premier auction houses, where the watch market experienced a 33 percent boom, raking in an extraordinary $575 million in sales. Among them, 40 watches effortlessly sailed past the million-dollar mark, surpassing their previous year’s show. The ultra-wealthy are broadening their investment horizons, incorporating a mix of art, classic cars, and high-end watches, which now constitute

Looking ahead, the story of global wealth is one of transformation and growth; the focus changes from wealth accumulation to preservation, reflecting a resilient global economy.

This burgeoning interest in luxury watches goes beyond mere aesthetics and mechanics; it represents an interplay of investment acumen and refined taste.

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The luxury paradigm is undergoing a profound transformation. Today’s affluent are seeking experiences that resonate on a personal level, moving beyond mere opulence.

about 3 percent of their total assets. While art continues to be a top choice, with nearly 60 percent of UHNWIs planning purchases in 2023, watches are swiftly gaining traction, attracting a 46 percent following. Amid economic fluctuations, these luxury items have demonstrated remarkable resilience, with art, luxury cars, and watches appreciating in value by 29 percent, 25 percent, and 18 percent, respectively. Consider the Patek Philippe “Gobbi Milano,” a showstopper at a 2022 Sotheby’s auction. This masterpiece sparked a heated bidding war, ultimately fetching a record-breaking $7.7 million. These timepieces are not just

Image: Patek Philippe Reference 2499 2nd Series rose gold perpetual calendar chronograph. (Sotheby’s)

sophisticated accessories; they embody a compelling mix of historical significance and investment potential. Young collectors, in particular, are gravitating toward vintage and historically important watches, eschewing the fleeting allure of trendy “hype watches.” But the appeal of these watches extends beyond their rich histories. The craftsmanship itself is a major attraction, symbolizing a legacy of exclusivity and mastery. Young collectors are on the hunt for personalized or limited edition pieces, seeking more than a mere timekeeper— they’re in pursuit of a story, a tangible piece of art. Digital platforms, online forums, and social media have fostered a vast, interconnected community of watch enthusiasts, experts, and vendors. As mono-brand environments emerge as the new epicenters of luxury shopping, purchasing a watch transcends the transactional, becoming an immersive experience rich in tradition, yet imbued with contemporary retail sophistication. Electric Elegance: The Future of Luxury Cars In the dynamic world of luxury automobiles, a new breed of horsepower is taking the lead: electric vehicles (EVs), silently yet potently transforming the high-end motoring scene. The Business Research Company’s Luxury Electric Vehicles Global Market Report 2023 illuminates this electrifying landscape. The luxury EV sector, buzzing at $149.13 billion in 2022, is accelerating to an impressive $178 billion in 2023. This momentum is far from fleeting, with projections indicating a surge to $345.51 billion by 2027, propelled by a compound annual growth rate of 18 percent.

These EVs are redefining luxury, merging environmental responsibility with the exhilaration of high performance and opulence. 60

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They are reshaping consumer perceptions and driving industry innovation, transcending their role as mere ecofriendly alternatives to become pioneers in automotive excellence. According to McKinsey’s insights, the luxury vehicle market is witnessing a transformation. By 2030, electric engines are expected to power 50 to 60 percent of luxury vehicles. This evolution encompasses not only battery electric vehicles (BEVs) but also fuel-cell electric vehicles (FCEVs), broadening the spectrum of high-end automotive choices. Legacy automakers such as Jaguar, Audi, and BMW are enthusiastically carving their territory within the luxury EV market and intensifying the competition. This influx of established brands expands the horizons for ultra-high-net-worth (UHNW) consumers, offering a more decadent array of sophisticated, ecoconscious vehicles. The popularity of luxury EVs is driven by more than technological advancements in comfort and safety. It resonates deeply with a younger, environmentally aware demographic, reflecting a growing global consciousness about sustainable living. Regulatory initiatives, like those from the United States Environmental Protection Agency aimed at flattening out emissions, are catalyzing the adoption of cleaner automotive technologies. However, it is in the Asia Pacific region, particularly China, where the luxury EV market is truly accelerating. With a burgeoning middle class, heightened environmental awareness, and robust government support, this region is leading the charge. Homegrown brands like NIO and LI are at the forefront of this movement, showcasing innovative designs and technologies that cater to the luxury market’s evolving preferences.

Wine Waves: A Collector’s New Love In the sophisticated world of investment portfolios, fine wine has gracefully evolved from a niche passion asset to a fundamental pillar. WineCap’s research underscores this repositioning, revealing that 96 percent of key financial stakeholders anticipate a stark uptick in fine wine demand. At the heart of this growing interest is the Liv-ex Fine Wine 100 Index, a pivotal benchmark in the industry that meticulously tracks the price movements of 100 of the most sought-after wines. This index serves as a critical financial market indicator for the fine wine sector, offering UHNW investors detailed insights into market trends and fluctuations. Notably, the index has underscored the resilience and stability of fine wine investments, particularly in contrast to mainstream asset classes.

Despite global challenges such as the pandemic and geopolitical unrest, fine wine has not only sustained but thrived. Its low correlation with traditional assets further solidifies its role as an effective portfolio diversifier. The broader Liv-ex 1000 index, showcasing a remarkable 41.2 percent growth over the past five years, significantly outpaced the FTSE 100’s performance, highlighting fine wine’s potential for wealth preservation and growth. Additionally, the environmental, social, and governance (ESG) credentials of fine wine are increasingly gaining prominence. The sustainable practices in

vineyards, the omnipresence of organic and biodynamic production, and the environmental benefits of wine cultivation align with the growing ESG awareness among affluent investors. Vineyards, acting as carbon sinks, absorb a substantial amount of carbon annually. The move toward organic wine production supports vital pollinators, and the reduction of single-use plastics in packaging reflects an environmental consciousness that resonates with investors. On the home front, buyers are showing interest in properties that encompass private vineyards, which presents the owners with an opportunity to cultivate a familial wine legacy and expand their personal collection. Possessing a privately owned vineyard and its product has increasingly become an emblem of success and a sought-after home feature for the UHNW.

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Growing buzz around new wine regions is also reshaping the global wine landscape. The advent of new distribution channels has simplified and economized the process for wine enthusiasts to explore and purchase diverse wines online, circumventing traditional, often expensive routes like brokers and auctions. The rise of these emerging wine regions signifies a potential dethroning of viticulture strongholds traditionally perceived as superior. Beyond the classic terroirs of Bordeaux and Burgundy, where soaring prices and tariffs have expanded horizons, these new regions offer a refreshing variety at more accessible price points. Europe’s wine map is undergoing a metamorphosis, from Scandinavian vineyards benefiting from extended summers to Poland’s burgeoning varieties and the Netherlands’ winemaking revival. England’s climate change is fueling a sparkling wine revolution, while Belgium is exploring complex Chardonnays, and Georgia is modernizing its ancient wine traditions with a range of indigenous grapes. In North America, wine aficionados are venturing beyond Napa Valley, uncovering hidden treasures from Oregon’s verdant valleys to New York’s Finger Lakes. Canada and Mexico are also making their mark, each with unique varietals. In Asia, the wine scene is expanding beyond consumption to production, with Japan focusing on organic Koshu, China rising with Ningxia’s acclaimed Cabernet Sauvignon and India offering wines that complement its rich culinary traditions.

Gran Moraine Winery

Cardinale Winery

SOURCES Altrata’s World Ultra Wealth Report 2023: This report provides insights into the ultra-highnet-worth (UHNW) population, their assets, and their behaviors. Wealth-X data: Used in conjunction with the World Ultra Wealth Report to provide a detailed analysis of the UHNW population. Bain & Company’s Luxury Goods Worldwide Market Study Spring 2023: Produced in collaboration with the Altagamma Foundation, this report forecasts the growth and trends in the luxury market. Knight Frank Luxury Investment Index (KFLII): This index tracks the value of luxury investments, including high-end watches. WineCap’s research: Highlights trends in fine wine demand and investment. Liv-ex Fine Wine 100 Index: A leading financial market barometer for the fine wine sector. The Business Research Company’s Luxury Electric Vehicles Global Market Report 2023: Provides data on the market size and growth of luxury electric vehicles. McKinsey Insights: Offers insights into the luxury vehicle market and the shift toward electric vehicles. Institute for Policy Studies: Cited for its report on the growth of the private jet sector. WingX: A premier authority in aviation market analytics, providing data on private aviation trends. Arts Economics and UBS study: Offers insights into the art market, focusing on private collections and the rise of digital assets like NFTs.

Penfolds Vineyards

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DESIGN TRENDS: THE ZEITGEIST BY CAROLYN MEERS AND SARAH JANSEN-MOUNT

The 2023 conversation when it came to art, style, home design and amenities was nuanced and vibrant, with a complex array of trends that touched on a growing desire for self-expression, vivid storytelling, genuine human connection, a balance of old and new, high-tech and hand-hewn. Here are the seven trends that told the story of 2023.

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Reviving the Classics Old was gold. Along with old money and old clothes, vintage furniture and decor items were given a new life this year as thrift culture exploded. People were in search of historical items of quality, bringing storytelling into their homes. Homeowners and developers also undertook the task of revitalizing existing features rather than tearing things out, harmonizing with a global intention of ecofriendly living. The question still remains: How does one achieve timelessness? This year suggests diving back into time itself.

And you didn’t have to just choose one. An influx of textures and shapes brought depth and vibes to interiors this year. From natural materials like rattan to puffy textures and organic shapes, things got both inventive and sophisticated at the same time. Scalloped edges, mushroom-inspired shapes and velvety textures were layered into spaces—and outfits, too. More texture, more for the eye to play with.

Ambiance-Inducing Palettes We were unapologetically hungry for color in 2023. From pasteldrenched decor to 70s-inspired spaces, color was highly involved in the 2023 aesthetic, creating anything but boring rooms. Feminine tones such as lilac purples, lime greens and warm pinks brought the fun, while more muted masculine tones brushed walls dark green and nearly black.

Wanting to Feel What’s Real We worked to balance tech with truth. As AI permeates more aspects of work, art, home amenities and design, consumers balanced their desire to embrace new technology with a deep-rooted hunger for authenticity and the honesty of an unaltered human experience. This dichotomy led to both the creation of remarkably integrated smart-home features and nomadic, non-traditional living centered on real connections over amenities and modernity.

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Textural Tendencies

Home as the Stage for the Theater of Life Drama? We’re living for it. In a shift away from ultra-minimalist, white-on-white styles, today’s high-drama interiors represent modern maximalism at its most magnificent. Think highly curated color-saturated rooms with one-of-a-kind design details, vintage furniture and bold art that demands attention. The 2023 Pantone color of the year, “Viva Magenta,” captured passion, power and vigor with touches of the romantic.

Well, Well, Well Feel good vibes only. Wellness looked a little different this year. People mixed up mocktails, took cold plunges and were obsessed with their skin. In the home, folks added rejuvenating, detoxfriendly features usually confined to specialty spas—like infrared saunas, LED-lit rooms, hammams, steam rooms and cool pools. Plus, proximity to local co-ops, neighborhood gardens and weekly farmers markets emerged as top priorities for buyers seeking a grassroots vibe and a tangible connection to their community.

New Paths Forged The road less traveled got some traffic. While interiors leaned traditional, lifestyles played on the other side, with people breaking away from conformity and what was. They opted for privacy rather than partying, land over convenience and access to nature over buzzy big city attractions. Side hustles were on, and many made their own rules about what the work day (or night) could and should look like. With inflation and interest rates high—plus the cost of child care—multi-generational living also made a comeback.

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A LOOK INTO THE CRYSTAL BALL What's ahead in 2024? 2024 will likely segue into a heightened take of 2023’s narrative. Pastel tones will expand into shades of apricot and peach; we’ll continue to see soft, playful edges; and the old-world vibes that were the stars of last year will amplify into something along the lines of palace-core. More texture, more color and more art will transform homes into personalized, petite versions of Versailles. Lighting will likely take the stage as one of the key factors of ambiance (isn’t fluorescent starting to feel like an f-word?). People will continue to embrace mess and realness, turning away from the picture-perfect illusion of all things organized and tidy— because, hey, maybe we just need to accept what is (including ourselves) in 2024. Although, we do look forward to more automated home cleaning technology this next year, please. Our relationship with artificial intelligence is connected to it all—if we don’t consciously stay real, is our humanity at stake?

Big questions, big statements and big aesthetics. We’re here for it all in 2024.

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It’s been an incredible year of growth for The Agency Development Group, which now represents a global portfolio of $5B in real estate. The team represents 86% of the new development condo market share in Los Angeles—a whopping $1.5B in inventory.

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THE AGENCY DEVELOPMENT GROUP

Welcome to the Team

MARANDA BL ANTON Managing Director

KATHERINE DEMAKOS Vice President of Marketing

2023 will go down as a watershed year for TADG. While it’s always exciting to be entrusted with the sales of incredible new projects, I’ve been deeply inspired by the exceptional new staff and unique new markets we have added to our scope. At the end of the day, our team is what sets us apart, and our future looks bright. MIKE LEIPART, Managing Partner, The Agency Development Group

KIRSTIN CORSETTI Project Manager

JENNA MARKS Project Coordinator

Noteworthy Projects Fifteen New York, NY • Boutique collection of 21 Residences on the Iconic Upper West Side with imminent occupancy • 1-5 bedroom residences, all with private outdoor space, most occupying an entire floor and exceptional Central Park views • Curated Amenity Suite including 24-hour doorman, live-in super and fitness center 15west96.com | 917.250.0290 | Sales@15west96.com

The Canyon at Ascaya Henderson, Nevada • Located within the private guard-gated community of Ascaya • 51 Desert Contemporary homes (3 & 4 bedrooms) with lock & leave ease • 7 floor plans (3,584 to 4,859 square feet) Ascaya.com | 702-978-5800 | Canyon@Ascaya.com *Recently Launched Pre-Sale Reservations

One Laguna Cancun, Mexico • Presenting a new expression of the Cancun lifestyle • 211 lagoon-front residences in La Isla • Robust amenities include a private marina dock, marina club bar & restaurant, multiple private pools, paddle courts, fitness center, spa and wellness rooms, and juice bar

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Pendry Residences West Hollywood West Hollywood, CA • A visionary hillside enclave of 40 distinct homes, each with commanding views of Los Angeles • Masterfully designed by acclaimed EYRC Architects, with hand-selected interiors by Martin Brudnizki • Owners enjoy personalized experiences, dedicated staff, exclusive resident amenities, and privileged access to Pendry West Hollywood, including a rooftop pool, live music venue, and seven bars and restaurants by Chef Wolfgang Puck PendryResidencesWeHo.com | 310.849.0202 Inquiry@PendryResidencesWeHo.com

8899 Beverly West Hollywood, CA • Vibrant West Hollywood Design District location • 38 private residences & 8 custom houses • Designed by renowned Architect Olson Kundig 8899BeverlyBlvd.com | Info@8899BeverlyBlvd.com

Park Elm at Century Plaza Century City, CA • Well-connected Century City location • 143 private residences • Pool, fitness, yoga & pilates studios, concierge • Sushi Noz, KYU, and esitatorio Milos in the restaurant space ParkElmCenturyPlaza.com | 310.246.4777 Info@ParkElmCenturyPlaza.com

THE AGENCY’S TOP AWARDS AND RANKINGS We took home quite a few awards this year. From our outstanding leadership and our industry-leading creativity to our impressive numbers and remarkable growth, we just kept turning heads.

Award-Winning Leadership

Founder & CEO Mauricio Umansky ranked #50 among the most powerful and influential executives in the residential real estate brokerage industry

Mauricio Umansky was named Entrepreneur of the Year for Greater Los Angeles

Mauricio Umansky Named Media Maverick at the Power Broker Awards 2023

Rainy Hake Austin, President of The Agency, Named Executive of the Year at the Women’s Leadership & Symposium Awards 2023

The Agency’s in-house team of PR pros was acknowledged with three Hermes Creative Awards— two Platinum Awards and one Gold Award

The Agency’s Nicole Montgomery, VP of Marketing and Laura Corrigan, SVP of PR and Communications, Named 2023 Marketing All-Stars

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Growth & Sales

One of The Americas’ Fastest Growing Companies, 4 Consecutive years

One of L.A.’s Fastest-Growing Private Companies 2023

Nominated as a Top Luxury Brokerage 2023

Named in Top Three of Top Movers List, Ranking 48 Firms with the Largest increase in Closed Sales or Sales Volume

The Agency Ranked #18 Brokerage in the US by Sales Volume

Ranked 5th Largest Privately Held Independent Brokerage in the Nation by Sales Volume

COMPANY GROWTH & EXPANSION

2023 was a record year for growth at The Agency as we opened a grand total of 29 offices around the globe. That means our total office count has surpassed 100. That’s a milestone if we ever heard one.

Welcome to The Agency—we’re thrilled to have you.

29 OFFICES

Opened in 2023

SURPASSING 100 OFFICES Around the World

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BEND, OREGON

CHARLOTTE, NORTH CAROLINA

PALM BEACH, FLORIDA

KELOWNA, BRITISH COLUMBIA

NASHVILLE, TENNESSEE

HAMPTONS, NEW YORK

DALLAS, TEXAS

LOUISVILLE, KENTUCKY

PORTUGAL

HENDERSON, NEVADA

MALLORCA, SPAIN

BIG SKY, MONTANA

OUTAOUAIS, QUEBEC

PANAMA

TORONTO WEST, ONTARIO

SALT LAKE CITY, UTAH

FORT MCMURRAY, ALBERTA

CLEVELAND, OHIO

YORK REGION, ONTARIO

YORKVILLE, ONTARIO

VIRGINIA BEACH, VIRGINIA

PORTLAND, OREGON

BOISE, IDAHO

MARBELLA, SPAIN

INDIANAPOLIS, INDIANA

BOULDER, COLORADO

COEUR D’ALENE, IDAHO

GOLD COAST LONG ISLAND, NEW YORK

TELLURIDE, COLORADO

EVENTS The Agency has always been a leader in creating experiential events that amplify the brand and our vision. This year was no exception.

The Agency Forum 2023 This year’s annual sales conference was held in November in Austin, Texas and welcomed leading real estate professionals from around the world for four incredible days of networking, expert panels, renowned speakers—think Ryan Holiday, Kwame Christian and the hosts of The Skinny Confidential pod—and of course, some lively celebrations.

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Hampton Classic In August, newly debuted office, The Agency Hamptons, hit the ground running as a sponsor of the Hampton Classic, an iconic event and one of the largest outdoor horse shows in the nation. This multi-day competition attracts amateur and professional equestrians from around the globe, including national champion hunter competitors, Olympic medalists and adult amateurs.

Inman Connect New York In February, The Agency team was making moves in the Big Apple, attending the annual Inman Connect conference—showcasing our talent and industry expertise across panels and speaking events—and hosting our own event at our East Coast headquarters.

Grand Opening Events We marked the official launch of several offices across the country in The Agency’s signature style. From Dallas’ multi-day celebrations (complete with a performance from a Grammy-nominated musician) to St. George’s gorgeous outdoor soiree amidst the red rocks.

MARKETING The Agency has always prided itself on our marketing—it’s what has set us apart from the very beginning. We’ve branded not only ourselves but also the most incredible real estate and agents in the world. Behind our agents is an entire in-house creative agency of experts in luxury branding and marketing.

Here’s what they were up to in 2023.

We work really hard to make it look this easy. MIKE LEIPART, Managing Partner, The Agency Development Group

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THE AGENCY MAGAZINE Summer Issue Our Summer 2023 issue arrived just in time to inspire our readers’ summer travels, whether near or far. From Dubai to Big Sky, we shared some of the world’s most spectacular resort developments. Browse our curated guide to the historic, culturally rich city of Montréal, enjoy cocktails from Europe’s most picturesque sunset destinations, or plan your next relaxing getaway from our personal selection of natural spas around the globe.

Winter Issue In our Winter 2023 edition, we take you on a world tour of unforgettable destinations. Ring in the New Year at our picks of less-obvious, incredibly chic locales, from Morocco to Uruguay, Austria to Hawaii. Explore our guides of Zermatt and Healdsburg, or broaden your horizons at five dynamic destinations that are sure to become your new favorite vacation getaways, including Panama, Niseko, Costalegre, Menorca, and Canouan.

The Warmen Ranch Rancho Santa Fe

INCREDIBLE PROPERTY BRANDING Eye candy alert. Our in-house creative division branded some gorgeous properties this year.

6825 Zumirez Drive Malibu

Listed by Paul Lester

555 N. Tigertail Road Los Angeles

Listed by Mauricio Umansky and Farrah Brittany

Listed by Manuel Sanchez

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8710 Wonderland Avenue

2627 Caspia Lane

Listed by Andre Warren

Listed by Eric Haskell

940 Hauser Boulevard

167 Pomar Lane

Listed by Farrah Brittany

Listed by Eric Haskell

Rustic Valley Farms

The West Hollywood Edition

Listed by Brandon Piller

Listed by Daniel Stevenson

Los Angeles

Ventura County

Summerland

Montecito

9040 Sunset Boulevard, West Hollywood

IN THE PRESS The Agency’s in-house team of publicists is an invaluable asset, consistently securing impressive media placements in national media every day. In 2023 alone, our efforts have yielded an astounding ad value worth billions of dollars, reaching a vast readership around the world. This exceptional success not only elevates The Agency’s brand but also provides a powerful resource for agents within the firm, granting them privileged access to the press and an expert team to drive their marketing and sales efforts to new heights.

2,000

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Media Hits Per Day

24 BILLION

Annual Media Placements

Unique Monthly Readers

103

placements in The New York Times

placements in Inman

$222.8 MILLION+ In Ad Value to Date

placements in The Wall Street Journal

placements in Mansion Global

ShaRE Panels The Agency debuted our new panel series, The Agency ShaRE. This event features incredible guests covering a range of topics from timely real estate news to engaging lifestyle content. The Agency community will continue to come together in 2024 for groundbreaking insight and in true The Agency style: a whole lot of fun.

Marketing Portal Launch At The Agency, we have the most productive agents in the real estate industry. Behind each of them is a fully staffed creative agency, providing the best branding, marketing and media services in the business. The Agency launched our Marketing Portal companywide to our agents—their new primary resource for all things marketing and public relations. With this portal, our agents have the keys to all of our marketing and PR resources, as well as direct access to the team.

It’s our dedicated pipeline—a living, breathing resource for constantly refreshed materials and on-demand access—all syndicated for ease and efficiency. 88

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AMPLIFYING OUR AGENTS It’s fun to see what happens when you combine extraordinary agents with the power of an in-house marketing team and creative agency. That’s exactly what happened when the leading agents of The Agency New York—our East Coast headquarters—collaborated with our marketing gurus to create a very personalized ad campaign. The Agency's Molly Townsend, SVP of the Tristate area, Creative Director Shane Gazzo and VP of Marketing & Content Nicole Montgomery led the vision for the campaign—with Shane directing

the photo shoot on site and Nicole crafting the stories. “We wanted to take the L.A. lens of the brand and revive it in a very New Yorkspecific way,” said Shane. “Yes,” chimed in Nicole. “The visuals—and the unique personality of each agent—were our jumpingoff point for the words. In our usual fashion, we wanted bold, emotional stories that really showcase who our agents are and the unique perspectives they bring to the table.” Erin Ramirez is the New Yorkbased marketing expert who

facilitated the execution of the campaign. “We usually work with our agents to showcase their listings and help them market on behalf of their clients, so to get creative with them and understand their love for our city was such an exciting moment for the members of the local marketing team,” she said. From the New York Original to the Real Estate Natural, meet the next generation of New York real estate. Shoutout to David Doobinin, the artful and acclaimed photographer who shot the beautiful images.

When I was conceptualizing this campaign, I wanted to make sure the uniqueness of our agents was front and center,” said Molly Townsend, Senior Vice President and Managing Partner of the TriState area. “Because they are each so truly exceptional and bring wide-ranging expertise to New York clients. I think the end product beautifully captures that—their individuality, personality and the perspective they bring to the table. 89

THE YEAR IN SOCIAL MEDIA In 2023, The Agency’s social media channels generated record-breaking virality in global impressions and engagement by capitalizing on trends to create innovative content that showcased our global inventory of luxury properties, the lifestyle of our brand and connectivity throughout the industry. We’re one of the first real estate brands to align with notable luxury brands and influencers to broaden viewership and reach.

The Agency remains one of the world’s most-followed brokerages on social media.

The Agency Red Paper 2024 Annual Market & Wealth Report

Articles inside

The Zeitgeist: Design Trends to Watch, Excerpt from The Agency Red Paper 2024 Annual Market & Wealth Report

Consumer Spending: The Paradox of Resilient Luxury, Excerpt from The Agency Red Paper 2024 Wealth Report

Welcome Home Gen Z: A New Generation Enters the Real Estate Market, An Excerpt from The Agency Red Paper 2024 Wealth Report

Real Estate Market Migration & Buyer Trends: Excerpt from The Agency Red Paper 2024 Wealth Report

Mortgage & Housing Outlook with The Agency and New American Funding