What to Expect in Real Estate in 2019
2019 may still be two months away, but it's certainly not too soon to start planning for the new changes and trends in real estate in the new year. With real estate, there’s never a consistent status quo- it’s a business where any change in trends can drastically affect the market. The demand and supply of real estate depend on a variety of factors and each year these factors turn into variables, especially with the new year right around the corner. Among these variables, trends following the process of buying and selling in the real estate market are most significant for investors, brokers, real estate agents and buyers.
However, it can be difficult to predict which trends will change, which ones are here to stay and what other trends will be introduced. But knowing about these trends is essential to the state of the housing market - the answers to those questions are what determines the decisions investors, brokers, and realtors will take in the future, in the upcoming year. We’ve broken down the most important changes for you to understand the real estate market in 2019.
Shift to the Online Market
Throughout 2018, the most prominent trend that has taken over is the shift from traditional transaction experience to a more extensive online experience. The demand for realtors and other companies to have their portfolio, credentials, and the like put up online is a way for potential buyers to see their ‘digital footprint’- with access to your past records, commercial and residential investors are able to distinguish between realtors with a strong track record and those with a poor one. In addition to that, brands will have to market everything through social media and build up a good online presence.
Through the Internet, transparency in the real estate business becomes real and this will follow through in 2019. Investors will be able to make informed decisions much faster and real estate agents and brokers will be held more accountable. This trend of the online presence of brands will grow and may completely change the way the real estate market functions. If you’re thinking “How do I sell my house?”, you’ll be selling homes in 2019 a lot more easily. And, if you’re planning to invest in real estate in 2019, finding a good realtor will be much more convenient.
Millennials Will Rise
Well, they won't rise because the challenges will continue to present themselves through the real estate market but they will be able to take out bigger mortgages in early 2019, with most of the generation in their 20s and 30s. Their incomes are slowly rising with plans to start families, which means that they will be motivated to buy homes in 2019.
Despite this silver lining, the generation will continue to face problems in the housing market with the mortgage rates expected to rise by the end of 2019, due to inflationary pressure, monetary policy normalization, and stronger economic growth. This gives first time home buyers more incentive and reason to buy homes in early 2019 which will hopefully help millennials rise above the real estate market.
Demand for Smart Home Automation
Technology, as we know it, has come to dominate the ground we walk on; it’s everywhere- including our own homes. The past several years have been revolutionary in the field of home technology as we've witnessed the release of many smart home devices. And there’s certainly more to come. Potential home buyers might start keeping smart home technology on their basic criteria.
Realtors, brokers, and real estate agencies will have to come up with different ideas to integrate new smart home gadgets and devices into their house tours to get mass appeal from the public. As this technology grows more affordable to the average consumer, the market is sure to see smart home automation systems like smart speakers, state of the art security cameras, and the like in even more homes and offices by the end of 2019.
If we follow past trends, we saw real estate agents selling everything from mansions, to studio apartments to rentals- they sold literally anything on the housing market. But today, it’s especially important to be able to distinguish yourself as a broker or realtor who specializes in selling a particular type of home. Along with that, the best of agents tend to pay attention to every small detail, like whether the furniture comes with the home or if the doorbell actually works.
In 2019, we expect to see more real estate agencies and brokers specializing in different fields because selling a multi-million dollar property is different to selling a one-room studio apartment- how you market differs between the two and investors are well aware of this fact. And buyers can rest easy with this expected trend as this only makes it easier for them to look for the perfect realtor.
Southern Homes reach New Heights
Homes in the South are expected to beat the U.S. national average in terms of homes sales growth in 2019. The Southern states have been luring in both commercial and residential investors to the real estate market in the South with its low cost of real estate and in general affordable lifestyle. With the increase in economic and household growth, we saw a rapid boost in homeownership in the past year which will continue on in 2019.
People’s attitude towards builders in the South is becoming more and more accommodating which means that the moment there’s a decent supply of homes, the demand will be nothing short of steady and increasing. In 2019, hopefully, the Southern housing market will achieve more sales and a boost in its presence across the United States.
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Here’s to a happy and successful 2019!