Five Real Estate Trends to Know in 2019

Written by Posted On Friday, 04 January 2019 08:42

As we enter into this new year, it’s a time of fresh beginnings, motivating agents, buyers and sellers alike to make this a profitable and successful season. To make sure the reality matches up to the expectation, knowledge is key. While 2018 was an interesting and exciting time for real estate professionals, this year is poised to be equally if not more dynamic.

 

As home prices continue to escalate, what does this mean for hopeful buyers and agents? Will it spur more movement toward the rental sector? Moreover, how are interest rates affected and what does this mean for current homeowners?

 

Today, we’re taking a look at the top five real estate trends to understand and look out for in the coming year so agents can be as prepared as possible to help their clients navigate the shifting landscape and maximize the returns on their investments.

 

An Increasingly Tech-Savvy Sector

Across the board, look for sophisticated technology including artificial intelligence (AI), augmented and virtual reality (AR/VR) and machine learning to continue to transform the real estate market. Using these tools, agents can help prospective home buyers browse and learn more about properties that are halfway around the world. They can also amplify the local home search experience by making viewings as feature-rich as possible.

 

In the same vein, agents can leverage robust predictive analytics to make their web presence as user-friendly and audience-centric as possible. The same technology that allows home buyers to scan the web for a property that best fits their needs and learn as much about it as possible is also accessible to agents to help them mine their web traffic for valuable insights into user trends and patterns.

 

A Movement Toward Downsizing

While Baby Boomers prefered two-story, single-family homes, today’s Millennial homebuyers are looking for a smaller property footprint. At the same time, those Boomers have reached retirement and empty nester age and are subsequently ready to move into a smaller, single-story space .

 

As such demand rises, agents can expect to see more ranch-style homes desired and purchased across the board. At the same time, sales and rentals of city apartments and condos are also expected to rise as a younger generation seeks quick access to nightlife and work opportunities rather than putting down roots in traditional suburbs. This list of popular Millennial cities is a great way to gauge what this demographic is looking for in terms of accessibility and affordability.

 

A Shift Toward New Construction

Though rental rates held steady in 2018, this was primarily due to the fact that many home buyers are opting to construct a new property rather than move into an existing one. While the Great Recession forced millions of Americans into foreclosure, they’re waited a decade to be able to get back on their feet and make a move. Now, they’re ready to do so on their own terms, looking to own their own homes designed precisely to their liking.

 

As such, expect to see construction rates rising, even as the cost of raw material continues to escalate as well. This could negatively impact rental numbers, though averages are expected to continue to rise across the country.

 

A Newfound Interest in “Second Cities”

While large U.S. cities will always have some level of a draw for those looking to live in the heart of a district, their smaller suburbs and outlying cities are seeing newfound popularity. Thanks to booming downtown revitalization efforts around the country, these areas are hip again and are especially appealing to Millennial homebuyers.

 

If the area is walkable with easy access to reliable transportation, it’s slated for growth in 2019. The Census Bureau backs up this claim, reporting that between 2016 and 2017, nearly three million people moved from larger, principal cities into nearby metropolitan areas. Future-focused real estate companies such as Strong|Edge Realty can use this knowledge to help steer their urban-minded clients into areas that offer the appeal of a big city but with the comforts and accessibility that smaller cities can provide.

 

Intense Focus on Rental Amenities

While the rental market might experience a shift as those renting in 2018 enter into their newly constructed homes, it still remains a viable and significant part of the real estate sector due to rising income levels across the board. In fact, a recent report reveals that in 2017 alone, renters who made a median income could afford roughly 50% of all available rentals, a figure up from only 28% in 2011.

 

As such, property managers are seeking to make their rental properties as attractive as possible to today’s discerning renter. From exclusive gyms and rooftop pools to movie theaters, dog parks and co-working spaces, there are myriad ways they’re amplifying their offerings to appeal to a more detail-oriented and demanding audience.

 

Acing the Real Estate Game This Year

These are only a handful of the changes that the real estate industry could experience over the next year. All will depend on the state of the economy, consumer confidence levels, access to construction materials and other variable factors.

 

A forward-facing real estate agent will review these trends with discernment and stay up-to-date on all advances and changes within the sector. Then, he or she will take the time to understand how these shifts affect real estate transactions at a singular level and which steps to take to improve the client experience at every turn.

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