Real estate trends in 2018 showed that the market can shift quickly, and real estate professionals need to be prepared for upcoming trends that may affect the market. Companies like Eaglemountain.com note that trends can impact the cost of property buying, selling, and financing.
Advance knowledge of the real estate industry’s market trends provides professionals with an edge over their competition and the ability to serve their customers better. Professionals can be more prepared to implement, react to, and inform how the market shifts for the rest of the year.
Advancements in Technology
Technological advancements encourage rapid changes in the real estate industry. Agents should adapt and make changes so they can maximize the exposure of their property listings. Technology has the capacity to change the way sellers and buyers view the market. Real estate professionals who are able to quickly adapt to this new reality and accept the changing perceptions of the market can deliver better quality services and have a competitive edge.
Blockchain technology can create increased transparency and disintermediation. It is changing the kinds of properties buyers, sellers, and investors are interested in, as well as the way they interact with each other.
Social Community Management
With increased advancements in technology, online presence and branding become even more important. Real-time management of social media accounts, for instance, can influence a real estate business. In addition, the Gen Z generation is beginning to play a huge role in the industry. Their influence on how real estate is designed, marketed, and managed will only grow in the coming years.
Social media also influences the home buying habits of younger generations. Millennials, for instance, do online research and rely heavily on online reviews and social media presence before coming to a purchasing decision. This encourages real estate professionals to change their marketing strategies to appeal to these clients.
An increased number of agents continue to recognize the value of using professionals for visual marketing within the real estate industry. This may include virtual staging, drone video and photography, virtual tours, and interactive floor plans. Those involved in the industry, including agents, homeowners, and home seekers can benefit from these visual design tools. They are now more a requirement than a tool for the sake of aesthetics and convenience.
Trends in Other Industries
Dive in Retail Assets
Online sales are driving traditional retail sales down. This trend means malls are growing more obsolete. Unfortunately, however, few attempts have been made to adjust mall spaces for real estate and for multifamily redevelopment.
A consistent stream of new construction projects kept rent prices steady in 2018. The stable increase in new buildings slows down rent prices. However, prices remain above long-term averages across the country.
In 2018, there was a drought of available inventory in the real estate market. Fewer homes were available than was expected. Underlying reasons were found to be demographic, economic, regulatory, or a combination of these aspects. Real estate agents can do better at increasing inventory levels and explaining the current market situation to homeowners.
These trends are likely to continue into 2019. Homeowners and real estate agencies need to be prepared to deal with further changes to the real estate market.