As we enter into a new decade, predictions about real estate are being made by various brokerages across the U.S.
Here are some of these predictions.
- It will be a sellers’ market for the first half of the decade; however, the latter half of the decade is likely to change to a buyers’ market due to the millions of Baby Boomers who want to downsize into a retirement community, a condo, or even an apartment.
- Technology will ramp up in all aspects of real estate. Virtual 3-D tours will be the norm.
- More iBuyer companies will expand to all regions, making buying and selling faster and dependable.
- Due to the inadequate number of affordable housing, especially in large cities, co-living arrangements will become more of an option even amongst non-related people.
- A presidential election will slow the market due to uncertainty.
- More multi-family new construction will outpace luxury condo developments.
- There is likely to be more demand for efficient and greener amenities in complexes such as dog runs, roof-top green spaces, transit options, and work-from-home technology options.
- Buyers want a higher-quality product rather than paper-thin walls, cheap finishes, and poor layouts.
The Agent’s Role
The role of the real estate agent is changing. Technology is incorporated in all aspects of the transaction. Paper listing agreements and offers are going by the wayside in favor of electronic signatures and instant file creation. Marketing is specifically targeted for a demographic such as first-time home buyers, downsizing Baby Boomers, or families wanting a specific school district.
The agent needs to pin-point the correct price, condition, and location based upon various real estate valuation models, plus knowing the local market in order to provide full value to their clients. Agents know customers have choices, so the agent must be available and communicate at every level throughout the process.
The agent needs to understand design trends, marketing trends, and stay abreast of legislative changes that may affect real estate. They are a hybrid of real estate education, marketing, and design expertise mixed in with financial know-how.
More brokers will start offering concierge services intended to increase the value of a property prior to a sale. These concierge services include de-cluttering, cleaning, repairs, painting, inspections, staging, plus perhaps home warranty and finance options.
“Home buyers can already view thousands of properties for sale online, but it takes an expert to help them make the dream a reality. Agents can help buyers decide if a home is a good value, understand financing options, and educate them on how the local market has been trending. With the rise of information, the ability of an agent to bring creative solutions to the table will be even more important in the future.” (Inman, Christy Murdock Edgar, 12/26/19)
Although there is likely to be corrections in the market within the next 10 years, Americans still view real estate investment as a primary source of financial wealth. If there is a recession, it will not be due to the housing market, but more likely due to a trade policy, a stock market correction, or a geopolitical crisis.
The U.S. real estate market remains stable. Our economy is good, the job market remains strong, and the unemployment rate is down. Mortgage rates are low and are expected to remain so.
Just like WebMD and other similar sites will never replace medical professionals, real estate technology, even including Artificial Intelligence, can never fully replace the benefits one gains from having an expert real estate agent facilitate the home buying and selling experience.
Contact Premiere Stagers & Realty at 608-345-9396