The real estate market has experienced some interesting trends over the past year. For one, home prices won’t stop rising, and it doesn’t help that housing inventory is at a record low. Despite tough market conditions, Millennials are pushing harder than ever for homeowners.
Additionally, new technology is streamlining, and sometimes threatening to disrupt, almost every part of the real estate industry. For example, blockchain and crowdfunding platforms are changing real estate investment, and sites like Zillow and Airbnb are impacting residential real estate.
- Technological innovation is advancing fast in real estate, and it’s crucial for agents to adapt
- Home prices are still rising at paces upwards of 10% in some markets
- The record low housing inventory has been the most surprising and unexpected trend
Fifteen members of Forbes Real Estate Council share what real estate trends or market shifts they have been most surprised to see so far in 2018, from blockchain advancements to the return of co-ops, rising home prices and more.
1. Technology Advancements
The advancement of technological innovation in the real estate industry has been changing rapidly and all agents should adapt to this to maximize exposure for their listings. Companies like Redfin, Zillow, Trulia and Homesnap have been changing the way sellers and buyers perceive the market and it is crucial for agents to quickly adapt to this new reality. – Alex Chieng, A & L Real Estate Team
Not to belabor the already highly-trending topic of blockchain changing the world, but this is the reality of our industry. Blockchain-based applications are changing the way buyers, sellers and investors interact with each other and the properties they have interests in. Welcome to an new world of unleashed liquidity, transparency and disintermediation. The real estate world is rapidly changing and we must do so too, or we will fall by the wayside. – Garratt Hasenstab, The Mountain Life Companies™
3. Return Of The Co-Ops
For the past several years in Manhattan, we’ve seen the downtown new development condo market take a big bite out of the co-op resale market. Now that there are so many new (and more expensive) projects, we’re seeing buyers actually return uptown to purchase co-ops because the prices are more moderate in comparison. What hasn’t changed is that some of the boards remain difficult to pass. – Elizabeth Ann Stribling-Kivlan, stribling.com
4. Home Prices Still Rising
The NYC real estate market indicates that home prices might rise more slowly in the months ahead. During the years 2012-2015, we saw 12%-15% growth. We didn’t have any surprises this year. Average home price growth over the last few decades is somewhere between 5% and 10% per year. So, perhaps what we are seeing here is a normalization within the Manhattan real estate market. – Elliot Bogod, Broadway Realty
5. Millennials Buying Homes
I’ve seen article after article saying millennials do not want to buy a home or cannot afford it, yet homeownership for this age group is on the rise. Fortunately, this age group is still a significant portion of the luxury rental market, and the baby boomers who just sold their houses are an increasing renter base. – Susan Tjarksen, KIG CRE LLC
6. Steady Stream Of New Construction
The top trend I’ve seen so far has been a steady stream of new construction, which is keeping rent prices mostly in check for 2018. A stable pipeline of new buildings means we’ll see the impact of lower rent growth but still above long-term averages when it comes to rent across the U.S. – Nathaniel Kunes, AppFolio Inc.
7. Low Available Inventory
The drought of available inventory has been the most surprising trend, by far. Whether the underlying reasons are demographic, economic, regulatory (i.e., zoning) or a combination thereof, we just aren’t seeing as many homes hit the market as we should. Agents have to do a better job in prompting inventory and explaining the current seller’s market to homeowners. – Ari Afshar, Compass
8. Visual Marketing Trends Soaring
We are seeing a huge uptick in agents recognizing the value in using professionals for all their visual marketing needs — virtual staging, drone video and photography, virtual tours, interactive floor plans and more. Hiring the pros to help will continue to be less of a “nice to have” and more of a “must have” for agents, homeowners and home seekers alike. – Brian Balduf, VHT Studios
View the original article at Forbes