Commerce is continuously changing and at a faster pace than ever before, so it’s sensible to expect real estate market trends to change as well. Several factors will affect how the market changes, so keeping a close eye on those trends can help you make wiser investment choices. Learning more about the following trends, in particular, can help you predict how best to invest your resources.
Millennials Want Convenience
In the past, young homebuyers were looking for homes in the suburbs far removed from the bustle of city life. While millennials also want large homes in nice neighborhoods, they don’t want to sacrifice convenience. This means they’re looking for upscale areas that are still close to amenities, such as shopping, parks, and public transportation.
The Post-COVID Market Crash
Many investors are wary about investing right now out of a concern that fewer buyers and rising interest rates will contribute to another housing market crash. In truth, there’s reason to be optimistic. While interest rates are rising, they’re doing so gradually over time. This is a sign of a healthy market because it encourages buyers to act earlier rather than later. Conversely, rapidly increasing rates would be a clear warning sign that there’s trouble ahead. As long as rates remain steady and home prices aren’t overinflated, this remains an excellent time to invest.
Rent Auctions May Increase Rates
A South African startup has launched an app that allows prospective tenants to bid on rental properties, which may be the beginning of a new trend. The idea of auctioning rental units to the highest bidder appeals to property owners because it helps them to get the best possible rates for their rental units. Meanwhile, potential tenants must be willing to outbid others, which means the winning bidder will be the most enthusiastic about the property. If the trend catches on, this concept may change the way property owners market their rental units.
Between dealing with a global pandemic and introducing new technology, such as 3D virtual reality home tours, the real estate market is expected to change at a record pace. Trying to keep up with all of these changes can seem like an overwhelming task, which is why real estate brokers are also changing and improving the services they offer. Working with a real estate professional can help you make better investment choices as our culture evolves in the coming years.