We are watching a classic cases shaped economy play out in the housing markets while middle market home buyers are sitting on the sidelines squeezed by economic uncertainty as well as high mortgage rates.
We are looking at the luxury market surging now.
In fact, the median US luxury home sale price recently jumped by 3.6%, and that is double the increase for non-luxury homes and cash buyers as well.
As the booming stock market and massive AI payouts are driving this high end resilience.
Well joining me live here at the New York Stock Exchange is Malte Kramer, founder and CEO of Luxury Presence, an AI driven marketing platform for real estate agents as well as brokers.
Mo great time here.
Thank you so much for joining me.
Thanks for having me on.
Well, first and foremost, we're here at the New York Stock.
We continue to monitor what's happening on the ticker as well as in the broader economy, but when it comes to the luxury market for real estate, give us the lay of the land and what you're actually seeing.
The luxury market is highly geographically dependent, so depending on what state and what city we're looking at, we're seeing very different performance across the country.
And in general, the luxury market has been fairly fairly resilient, and that continues to be the case.
So we're seeing the year off to a similar sluggish start to last year in many markets, but certainly in some areas there's tremendous growth.
So two questions for you.
You mentioned region when it comes to the luxury market, but when we're talking.
Luxury real estate, what range are we talking about in terms of prices?
Again, it depends.
There's not really a price point that applies across the country when we're talking about Beverly Hills, luxury means 5 or 10+ million.
When we're talking about smaller towns across the country, it may be $800,000 or a million dollars.
And so we think of luxury not as a price point but an experience.
And so the answer is highly dependent.
So while we're talking about this, of course some regions in the country, in particular San Francisco, the Bay Area, so we know that artificial intelligence is a technology that many people are utilizing and has led to the growth that we're seeing in the tech sector as well as semiconductor space.
But when we're talking about the market in San Francisco, what's really happening, especially given that the region So flush with AI cash.
Real estate is a massive industry.
It represents over 2 $1 trillion in annual transactions and employs over 3 million real estate professionals, and yet it really hasn't been digitized to the same extent as many other industries.
And so that's just starting to take place and we are at the forefront of that.
We have built technology for real estate.
Agents to help them run their businesses more efficiently, grow their business in new ways, find opportunities in their existing database that prior to AI would just been impossible to do.
And so we're starting to really see the impact of that on the businesses of our clients who are growing their businesses 6 times faster than other agents in the same market.
So the AI impact is real, but I believe we're still very early.
Yes, and speaking of which, tell us what you're doing with artificial intelligence, because here we talk about the role of artificial intelligence, how it can potentially shift the labor market depending on the industry that we're talking about.
But what about real estate?
Yes, so much of the conversation about AI is around efficiency and cost cutting.
And there's certainly there's good reasons for that.
If you're running a business, you're focused on how you can do things faster and more efficiently, but what I think are the most interesting opportunities are the things that are possible now that you could not have done two years ago.
And I'll give you an example.
We recently launched an AI powered CRM that tracks all of the contacts across.
CRM, your email list, your your social enriches it, so it does the research and then finds triggers for life events that tell our clients now might be a good time to reach out.
And so these are the kind of use cases that I am most excited about because they help business owners grow their businesses faster than was previously possible.
Marty, we are counting down to the opening bell here, so less than 60 seconds, how are you scaling?
We just hit $100 million in annual recurring revenue, so a huge milestone for us.
It's a milestone only 2% of venture-backed startups ever reached, so we're really excited and proud to have gotten to the scale, and we feel like this is just the beginning.
Real estate is at the beginning of this huge transformation, and we're trying to lead it.
Walter, great having you here at the New York Stock Exchange.
Hopefully we can continue this conversation at another time.
Thank you so much for joining me.
Thank you.
