Real estate refers to property such as land and improvements such as roads, buildings, fixtures, structures, and utility systems. When one gets property rights, they can make improvements to the land.
Over the last few years, real estate industry developments in the US have been described as both negative and positive. The prices of real estate properties have been rising and dropping due to various economic factors. And since many people depend on the global real estate market, any downturn in their value can make many lives harder while an increase will enrich those lives.
According to Forbes, $13 billion was spent in real estate technology in 2017 alone. Similarly, over 20 US states have shown moderate to minimum price hikes in the year 2019. Phoenix recorded the highest price hike with 5.83 percent, followed by Las Vegas with 5.51 percent, while Seattle recorded a price decrease of 1.32 percent. But like other industries, the future of this industry is paced on emerging trends.
Predictions on the Future of the Real Estate Industry
How does a landlord set the rent? Most landlords check the market rent and use it as the initial rent for new tenants. But did you know that landlords can get better terms if all potential tenants were to bid on the rent?
In the future, we expect landlords to offer rent based on bids. Less desirable homes will have lower bids and fewer prospects. On the other hand, units with high demand will get higher bids. This strategy will also ensure that the person living in the house is enthusiastic about residing in it.
2.Real Estate Agents
The growing disconnect between the real estate agents and homeowners will have a significant impact on the industry. For starters, many homeowners are torn between selling their property by themselves and seeking the help of agents. But agents are still relevant in the current era as they help homeowners navigate the turbulent local market and negotiate for better prices.
A homeowner can easily mess up when selling property. Still, with an agent, they can find many competent buyers ready to spend good money on their property. But going into the future, many homeowners prefer online listing services than traditional agents.
According to Lisa Edwards, the director of For Sale by Owner, most homeowners want more control when buying or selling their property. In 2015, this company registered a 57 percent increase in the number of people listing their real estate properties.
And considering online listing services charge as little as two percent for their services, they are way better than traditional agents who can take home up to 30 percent. Therefore, modern homeowners are opting for online help when they want to list their property for sale.
3.Integration of Virtual Reality when Buying Long-Distance Real Estate property
Currently, many prospective clients are not willing to buy any property until they see it in person. But with virtual reality, buyers can check the different aspects of the home, including its design, furniture, and even décor.
Also, prospective buyers will easily scan through hundreds of homes in a real estate agent’s office until they find one that suits their needs. Therefore, virtual reality can transform the global real estate market enabling customers to buy property confidently from any part of the globe.
The real estate market is evolving due to the current and emerging trends. Besides, technology is advancing fast, and homebuyer demographics are slowly changing the destiny of this industry. These factors have left many investors confused about the future of the real estate industry. But these predictions will take place gradually, and technology will be the primary shaper of the trends. So if you want to invest in real estate, take time to study the market trends and determine whether you can adapt to the changes.