Hot Topics in the Housing Market
Technology Growing Rapidly
The real estate market has seen a lot of changes in the last year, especially in terms of technology. This is further explained in the CRE report:
“Lockdown-driven changes in our work, in the economy, in social structures, and in our personal behavior have pushed our reluctance aside. The acceleration and adoption of technology during the pandemic has impacted everything, and real estate is no exception."
Real estate brokers can engage with clients no matter where they are thanks to advances like digital documents, virtual tours, and video chat. These choices are perfect for potential buyers and sellers who are not local to the area or who require the increased flexibility that signing paperwork online or participating in virtual tours provides. As a result, many reputable real estate consultants will continue to employ these technologies in the future to provide the best possible service to their clients.
Affordable Housing Supply
CRE's list of major factors this year includes the low availability of properties for sale and the corresponding affordability challenges:
“According to the National Association of Realtors®, the state of America’s housing inventory is dire, with a chronic shortage of affordable and available homes needed to support the nation’s population.”
There is some positive news to report. Because of today's low mortgage rates, homes are still more affordable than they have been in the past. While housing supply remains tight, we are seeing consistent increases in the number of properties coming to market, giving homebuyers reason to be optimistic. Buyers will have more alternatives as the availability of properties for sale improves.
Mobility At Work
Finally, during the pandemic, many people found themselves working from home, and the CRE's most recent list cited remote work and mobility as a major influence on the real estate market. As stated in the report:
“…the pandemic universally caused a movement away from urban cores, particularly for those with higher incomes who could afford to move and for lower-income individuals seeking lower costs of living. Most of these relocations remained within their original region—84%—and, while some are returning, it is unknown as to the permanence of these movements or whether they represent a true urban exodus.”
With the extra mobility that remote work provides, people are less reliant on a physical office site when they move and eventually buy a home. Remote workers can now migrate to more affordable areas and buy more houses for their money because of their newfound freedom.
New technology, housing supply, home affordability, and remote work are key factors in the housing market right now for both buyers and sellers. Keep yourself updated and educated in these factors. More and more are sellers and buyers educating themselves before they end up choosing the right agent. To be at the top you must be willing to learn and grow daily.