Although the epidemic has caused uncertainty in many aspects of our life, it has also ensured that the housing market is hotter than ever. The real estate market is always changing, and staying up to date with the Real Estate Trends is difficult. We’re looking into what’s happening in real estate, as well as some marketing, back office and accounting, transaction management, and analytic tools you and your agents can utilize to remain competitive, as we look forward to next year.
1.Commercial Real Estate is on the Rise
Residential listings are still flying off the shelves. Commercial real estate, on the other hand, will soon begin to recover from the pandemic’s effects and will have a significant influence on the real estate market.
So, why is this the case? Because e-commerce has developed at such a rapid rate in the past year and a half, fulfillment center space is in great demand from both large and small businesses. In reaction to the shift to hybrid/remote work, businesses are opting for smaller office spaces.
Multifamily properties, whether mortgaged or leased, are increasingly becoming a long-term option for individuals of all ages and economic levels. The need for new structures or existing buildings repurposed into multifamily quarters will continue to rise.
Furthermore, since the medical sector has performed well during the pandemic, many medical businesses are eager to extend their services to include more outpatient and non-acute settings.
2.Millennial Buyers are in Charge.
Millennials continue to constitute a sizable pool of first-time buyers looking to join the market this year. They’re breaking their leases, moving out, and purchasing properties in droves. Millennials are the fastest-growing demographic of purchasers today, according to a new National Association of Realtors report.
With the millennial demographic comes an increased desire for technology in the house purchasing process. Finding, viewing, and purchasing properties through the internet or on mobile devices has become the standard.
Real estate agents must adapt the way they work, from text-based communication using a real estate mobile app like Connect to being able to pass over digital forms with eSignature integrated into. Agents may also use digital and social media marketing tools like Boost to better target prospective millennial homeowners.
3.The Bidding Wars are still Going on.
Multiple offers on a house before it sells is nothing new in today’s competitive real estate market. Due to fierce competition and an abnormally short inventory of houses, bidding wars will continue to rage, pushing home prices to new highs and causing properties to sell for much more than their assessed worth.
So, how are you going to stay up with the competition? It’s all about ensuring that you and your agents score more transactions and listings. Because deals are coming in quickly, your agents will have to handle listings with many bids and bidding wars.
With software solutions like OfferPlace, agents can simply handle incoming offers and keep them all organized in one location, saving time and stress. Agents may alert their customers of new offers in real-time and accept, deny, or counter them all in one spot using real-time notifications.
4.While Lending Criteria Soften, Mortgage Rates Rise.
Many experts think that buying a house now is simpler than it has been in previous years—even after the 2008 crisis. First-time home buyers now have additional alternatives for zero or low-down payments, allowing them to easily purchase their ideal house. Of course, this implies that there are more potential house buyers for brokers to target.
Mortgage rates are likely to rise to the mid-three percent range in the coming months, helping to cool buyer demand and reducing the chaos of the bidding process. However, any increase in loan rates, when combined with already-high property prices, might make housing unaffordable, particularly for first-time homeowners.
The good news is that CRM systems like those from LionDesk or Unify by Propertybase can assist mortgage professionals and brokers in guiding first-time buyers through the complex financing and mortgage process.
5.A Major Relocation to the Suburbs
While city living is still fashionable, suburban life is sweeping the real estate market. Buyers are shopping for houses in smaller communities around metropolitan cities, and some are even ready to travel into the city if the price of a suburban property is cheaper. Plus, in this present health and economic environment, more individuals are working from home and want more room to spread out as work meets home life all day, every day.
On the other hand, more individuals leaving the city for the suburbs may result in a fall in housing values in metropolitan regions. It’s a win-win scenario for agents who want to target both urban and suburban customers, as well as brokerages looking to expand their business. Competitive market analysis systems, such as Terradatum’s BrokerMetrics®, provide a variety of tools and reports to assist agents and their clients avoid overpricing homes, all with the purpose of educating agents and their clients.
What does this Imply for Agents and Brokerages?
It’s straightforward. Real estate agents and brokers need tools in order to be successful in the often volatile real estate industry. Brokerages, agents, house buyers, and sellers are all looking for end-to-end real estate solutions that can assist them to navigate through the cloud of uncertainty.
The industry, without a doubt, evolves from quarter to quarter, or even week to week. Technology is here to stay, and there’s no better time than now to invest in smart digital solutions that assist agents and buyers through the difficult real estate transaction process, and deliver real estate market analytics to help agents thrive and brokerages expand.