Every year, the real estate market continues to gradually change in numerous ways. The latest technologies and economic developments can have a major impact. A stock market downturn, lower loan rates or new government housing programs could strongly affect real estate sales. It’s crucial for owners and brokers to stay informed about shifting trends and fully understand their implications.
Many people have busy lives and find it difficult to set aside enough time to read real estate news. It’s particularly hard to identify significant trends in a sea of local and national headlines. If investors and agents prepare for upcoming changes before their rivals take action, they can reap great rewards. My long-term experience in the mortgage and real estate sectors helps me recognize the importance of these eight trends:
- Specialist brokers
Until recently, most realty agents were willing to list and promote just about any type of property. They employed the same basic methods to sell mobile homes, urban condos, empty lots and upscale waterfront cottages. Today, successful brokers often specialize in marketing certain kinds of real estate. They learn how to satisfy a specific customer group, such as millionaires, middle-class vacationers or landlords.
- Little-known developers
I believe that comparatively small real estate developers will hold greater importance in 2018. Many of these entrepreneurs have recorded impressive achievements in recent years. They know more about the local area than big national or regional firms, so they can precisely meet the needs of buyers or tenants. Small businesses also react to changing economic conditions more swiftly.
- Social media
Most internet social networks don’t show any sign of losing momentum. Potential buyers continue to spend countless hours on websites like LinkedIn, Facebook, Twitter and Instagram. Developers and agents will benefit from expanding their social media marketing efforts in 2018. Nonetheless, it’s vital to budget time cautiously. Like everyone else, professionals can easily spend far too much time on social networks.
Agents may find their online marketing efforts less satisfying if they try to use all of the top networks simultaneously. It’s best to concentrate on a few major websites. Although Twitter has gained tremendous media publicity in recent months, Facebook still has far more active users. A real estate agency can quickly inform numerous buyers about a new listing by posting an update with a link, synopsis and photo.
- Agent profiles
The public increasingly wants to research individual realty agents on the internet. Before selling a house or business, an owner may go online to compare different brokers’ backgrounds, marketing strategies and areas of specialization. A seller feels more confident if an agent has a track record of selling similar properties at desirable prices. It’s no longer adequate for an agency to simply publish the name, picture and phone number of each broker.
- Virtual reality
The internet continues to supply more and more data on every aspect of the real estate market. Today, potential buyers can often see a property’s street address and find 360-degree photos of the neighborhood. In the years to come, advancements in virtual and augmented reality may make it feasible to simulate showings with impressive realism. This could expedite sales while providing a way for sellers and agents to save time.
- Generational shift
Although groups like Generation X and millenials have received a lot of attention in recent years, real estate professionals will soon need to begin serving Generation Z. These young people were born after 1994. Many will have finished high school or graduated from universities by 2018. Numerous members of Generation Z use technology constantly but prefer homes that reduce their dependence on cars.
- Worker shortages
The 2008 recession caused many construction laborers to lose their jobs. Most of these workers eventually gained employment elsewhere, and the industry now has difficulty finding enough people to hire. Consequently, new buildings frequently take longer to construct and developers incur greater expenses. If employers don’t find a way to attract more workers, this trend may strongly impact the affordability of residential and commercial buildings during the next few years.
- Automated homes
Automation systems have appealed to wealthy homeowners for over three decades. In the early 1980s, people started buying modules and computer software that activated lights and appliances at preset times. Modern home automation systems take advantage of wireless communications, the internet and voice recognition. Users can control household equipment with smartphones. Greater convenience and lower prices could help this technology become far more prevalent in the next five years.
As more people have opportunities to experience the benefits of intelligent home automation, I predict that real estate sellers and agents may begin to see a demand for automated homes. It’s easier to integrate lights, alarms, furnaces and appliances with these systems if developers do so when they construct new dwellings. Foresight may help them gain a competitive edge and avoid costly retrofitting.
During my years at Syracuse University, I took speech communication courses and earned a bachelor’s degree. I worked at Crestar Mortgage Corporation for about four years before obtaining a new position at Legacy Financial. In 2002, I became a real estate developer and named my company Legendary Properties.
I currently serve as TDL Global Ventures’ president. My mortgage and real estate work has helped make it possible for thousands of people to own homes. I presently maintain a residence in Maryland. When I’m not working, I like to travel and spend time with my kids. I also enjoy reading; one of my favorite books is “The Magic of Thinking Big.”
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