Current trends in real estate include a mix of developments. The market has been heavily affected by the Covid-19 pandemic that has created a new housing environment. Today’s landscape is expected to alter the way we approach real estate for the next few years, and maybe beyond. Let’s take a look.
1. Increased Homeownership – Homeownership rates have increased in 2020 and are expected to rise by 5% by the end of 2021.
2. Lower Interest Rates – Lower consumer spending during stay-at-home orders have resulted in lower interest rates, helping affordability ratios.
3. Steep Increase in Housing Prices – Real estate has entered a seller’s market that is gradually increasing inventory, slowing the pace.
4. Millennial Home Buying – Millennials comprise 38% of home buyers and seek mid-to-upper-middle class homes.
5. Affordable Homes – 87% of the homes purchased were resale as millennials opted for homes needing TLC and updating over turnkey properties.
6. Shift to Second-Tier Cities – Real estate investors and buyers moved out of high-cost markets to second-tier cities and suburbs.
7. Technology Impact – Real estate professionals are using online home selling platforms, apps, social media, and smart home technology to enhance effectiveness.
8. Mortgage Interest Rates – As the economy continues to grow, experts expect interest rates to rise and then settle.
9. More Demand for Luxury Homes – In the 3rd quarter of 2020, high-end home sales increased 60.7% year-over-year and this trend is expected to continue as more buyers prioritize an at-home lifestyle.
10. Smart Home Technology – Property managers are offering smart home technology in rental units to attract and retain tenants.
Wondering how your goals may be impacted by today’s trends? Let’s talk!