Tag: Real Estate Trends
Across the globe, the real estate industry took a hard hit during the COVID-19 pandemic, which left millions jobless. The huge migration of construction workers affected thousands of construction projects. The once-booming realty market experienced a shattering impact.
Not for long! The resilience of the industry paid off. Here is a look at how the real estate industry met the challenges head-on and what is in store for it in 2024.
Meeting the Challenge Head-On
The arrival of the Coronavirus vaccine geared up the real estate segment for yet another phase in early 2021. It realigned itself with buyers’ new expectations. Though the real estate sector has not remained immune to recalibration, it has shown remarkable resilience in the face of the pandemic.
Early 2021 saw a growing thrust toward digitization and technology adoption, beginning a new era in this sector. There has been a significant rise in virtual property events, cloud-based services, digital launches, and much more.
The real estate market is always in flux. It is highly localized with different conditions in different cities, states, and metro areas. Understanding the fundamentals of this segment can help you stay on top of all these changes and challenges that come with the economic downturn. As we gear up for a new year ahead, let’s begin by understanding what factors change the real estate market.
Read more:How Technology Can Solve The Challenges Of The Real Estate
Factors That Will Impact The Real Estate Market In 2024
Though it may be tough to estimate the exact sales volume and value growth, there seem to be enough catalysts to give rise to optimism.
- Real estate prices: Real estate prices are influenced by local buyer demand and the amount of housing supply that is available for buying. Lower rates attract more buyers and vice versa.
- Shifting property needs: The pandemic forced people to spend more time indoors. Hence, there has been a shift in property needs.
- Consumer house-buying power: Affordability is affected by incomes, inflation, and interest rates. When incomes increase, homebuyers might be able to afford higher-priced homes than they could have previously afforded.
- Mortgage rates: Interest rates impact demand, home prices, and affordability. It also fluctuates on factors such as Federal Reserve policy, bond market, inflation, and so on.
- Housing inventory: When housing supply is low, demand is high. This increases sellers’ market. If the supply is high, on the other hand, there will be more buyers to purchase them. This will slow down price growth and the real estate market will remain less competitive.
- Cycles and crashes: Along with the overall economy, the real estate market tends to be cyclical. There will be booms and busts. Fortunately, homeowners today are more financially equipped to handle the loans they have taken.
A Peek Into The Future Of The Real Estate
Among all the sectors, the real estate segment is showing tremendous growth. Here is what we can expect in 2024:
1. Effect of work-from-home on real estate
As the pandemic grinds on, tenant preferences will drive changes in real estate. Many homeowners will gravitate to newer buildings with better ventilation systems and modern amenities like touchless systems.
2. The rise of PropTech and digital transformation
The no-touch scenario has catapulted the innovations of PropTech to center stage. A 3D self-guided tour of the home can be a unique experience. Some real estate firms have put their entire leasing and renewal processes online.
3. Last-mile funding by the government
Governments help for delayed construction projects, along with incentives and attractive payment schemes are attracting homeowners. A fall in interest rates has been an additional incentive. So, developers will continue to witness a surge in inquiries across key real estate segments.
Technologies To Invest In To Remain Resilient
Property technology is booming and changing the way we look at property investments. This digital landscape is allowing both the buyers and investors to view multiple properties without ever having to move out of the comfort of their homes. Here are some examples:
1. Rise of Artificial Intelligence
Artificial Intelligence can accelerate the decision-making process as it aids in asset identification and selection. AI algorithms constantly test the feasibility and effect of different parameters. AI can also help predict any safety hazards or construction defects. This can save a large amount of time and money.
AI’s predictive analytic algorithms can find variations in the demographic pattern of the micro-market. Among many others, it can also detect the income distribution of individuals in the vicinity. This aids in identifying the true intrinsic value of the property.
2. Cloud-based technology
Cloud-based technology assists in the storage of large data. Information regarding properties can be stored and retrieved by stakeholders to answer any customer queries. This lowers manual work and saves time spent in looking for papers.
Read more: A Comprehensive Guide To Modern Cloud Application Development
3. Virtual tour
The spread of Coronavirus restricted movement making it difficult to visit a property in person. However, virtual visits can now be arranged to help buyers make an informed decision.
This allows stakeholders to set up a virtual meeting with the buyer and answer all their questions related to the property. Thus, instead of depending on imagination buyers can now ‘see’ for themselves.
4. Robotic process automation
Robotic process automation (RPA) can be used to automate regular clerical jobs at the site. These jobs may include regulating contracts and approvals between multiple vendors.
RPA enhances the likelihood of more deals being closed. It is more dependable as it significantly reduces human error.
5. Mobile apps
Rental and purchasing mobile platforms have gained popularity in recent times. The real estate industry constantly faces high-level competition. Hence, it demands a digital solution that can aid agents in their work and allow buyers to discover what they are looking for.
These digital solutions can include mobile applications for both agents and buyers. Developing a mobile app can distinguish you from the competition. They increase your chance of being found by your customer before your competition.
Mobile apps are more engaging and can provide a more rewarding customer experience. Customized solutions in the mobile app enable your agents to quicken the sales process.
Proptech Expertise Of Fingent Can Enable Your Business To Remain Resilient
Fingent is well-versed with the complexities that come with the development and implementation of real estate technologies. We are here to understand your idea and turn it into reality. With our expertise, we can create products that are driven by AI, Video conferencing, and more.
Take a look at: How Fingent created an all-in-one property management solution for Rentmoji, a leading Real Estate management firm in the US.
Our dedicated team can offer a wide variety of real estate software services. We strictly adhere to local data privacy and protection policies. We ensure to keep up-to-date with legislation so that apps remain secure and ready to use anytime, anywhere.
Fingent ensures that you are market-ready, armed with competitive technologies. Our experts can help you discover the PropTech potential in your real estate business. We have hands-on expertise and skills in the industry. We can collaborate with you and tailor software to your specific needs.
Fingent is equipped to create the most sophisticated and stable applications that meet your requirements. By partnering with us will enable you to use real estate software that is a perfect fit for your business values and expand your market scope. Drop us a line and let’s discuss your needs.
Did cell phones really help real estate agents? Yes, without any doubt. Cell phones did transform the industry by taking away all the limitations concerning mobility. Real estate agents were able to keep in touch with their clients irrespective of geographical barriers. Besides, agents can get in touch with their prospective clients while on the go and vice versa.
Technology has ushered in new possibilities in the real estate industry. Mobile phones constitute just one facet, whereas there lies a diverse array of technology tools and solutions capable of disrupting the real estate market altogether. As real estate is a people-focused business, more leads for a broker meant more sales. And real estate technology does bring in new ways to improve sales.
Being a real estate agent, thinking that technology will leave you jobless is entirely baseless. The truth is, failing to utilize the latest technologies will certainly make you lag behind and miss out on some of the huge benefits that await you. In fact, a recent survey by the real estate brokerage Owners.com reveals that home buyers are increasingly seeking technology-based tools from real estate agents.
With real estate turning more fast-paced and competitive, buyers are on the lookout for agents armed with real estate software tools to streamline the home buying process and help them make informed decisions quickly. In fact, the Real Estate in a Digital Age report by the National Association of Realtors (NAR) identifies several tech tools like social media, MLS site, brokerage’s site etc. apart from cell phones and email as catalysts to produce quality leads in a real estate business.
Related Read: How Realtors Are Winning Tenants With Innovative Mobile Apps
Real Estate Agents Still Holds Significance
We all know that nowadays a majority of buyers are doing most of their home search process themselves. Different mobile apps, websites, and digital platforms open up a wide range of potential properties based on the buyer’s interest. There are even alerts and notifications for new listings that exactly matches a buyer’s interest.
In a majority of the cases, we find that the buyers are doing most of the legwork when it comes to actually search for property listings. But that’s just an initial search and occupy only a small portion of the overall buying process. Once they find their listing, the buyer needs to call in an agent to physically get into the home and inspect it or even to draft a proper offer for submitting.
Even though it is clear that while buyers are increasingly adopting technology-based tools, they still require the guidance of a real estate agent to minimize delays and seamlessly guide the buyer to the closing process. Relying heavily on technology may present a risk, particularly in commercial property sales where the buyers are trading in millions. An agent’s expertise is highly sought after to effortlessly navigate the buyer and settle on the best listings that will guarantee high ROI.
Technology-based tools allow buyers to take some steps or responsibilities of the agents themselves. They can find the listings and close in the process without the assistance of an agent. However, it will never act as a full replacement for the expertise of a professional realtor.
Related Read: Real Estate Industry in the Digital Era
Technology is still inadequate to deal with several tasks that come under the work process undertaken by a real estate agent. From consolidating the list of documents to getting around the loopholes in placing offers and drafting contract term and policies, the role of a realtor gains the upper hand and stays relevant where technology fails.
According to a report by the National Association of Realtors, buyers still prefer working with a real estate agent for around 87 percent of the time to find properties worthy for sale or purchase. Many home buyers still rely on the advice from a trusted real estate agent when it comes to acquiring, selling or leasing properties.
However, technology tools clearly lack the ability to gauge specific information concerning a property such as its future value. Experienced realtors, on the other hand, can easily assess whether a highly rated property do carry any expected value and thus guide the home buyer to make an informed decision.
Technology will actually allow an agent to do an improved business. It enables an agent to better engage with their customers, optimize their business and zero in on deals that earn them the most profit. Besides, technology makes realtors more efficient, which helps them serve a larger client base with utmost satisfaction.
Digital transformation is now a key aspect of every sector. And it has been there with the real estate industry for years. The biggest trend now is probably the change in the mindset of agents by embracing technology to serve buyers who are increasingly tech-driven.
Technology Helps Realtors Serve in Many Ways Possible
As a real estate agent, what should you do?
As an agent, can you think of doing large volumes in a traditional way? You will find that it is really hard to extend services to your customers. However, technology can help agents serve a lot more people at the same time. Selecting the right technologies will allow agents to become more efficient – to serve more buyers in less time, resulting in more revenue generated.
Using a property management software can also help real estate agents make the buying process of their clients easier. With mobile apps making a big impact on the industry, agents are provided anywhere and anytime access to data and reports thereby extending more opportunities to share with their clients. The evolution of mobile apps has made it easier for both agents and buyers to communicate efficiently, schedule showings and meetings, and moreover make the entire process simpler. Besides, most of the apps available now are trying to organize things easier for agents.
Technology gave agents access to a huge amount of real estate data. These data can support the agents to take better decisions and will eventually provide them more opportunities. With the entire world shifting to data-driven practices, leveraging big data from real estate dealings and applying machine learning and AI helps make better recommendations and crunch out valuable insights that provide agents an overview to make clear and accurate decisions, which bring out more efficiency and revenue.
Related Read: How real estate technology helps predict property prices
If the buyers are performing their own searches, they get a better picture of the market, making things more realistic about what their budget will allow. On the other side, sellers will come to know what their properties are worth. But, they still need assistance to accomplish their goal of buying or selling, which means that technology will continue to revolutionize the market. However, when it comes to decision making, the customers will keep their trust with a real estate agent.
Down the line, agents who admit technology as a tool that can be adopted as a new way of conducting business and building successful relationships will ultimately lead the way. The key thing is to zero in on the right technology means that reaps true value. Teaming up with a sound technical partner having deep expertise in crafting successful technology solutions for the real estate industry will help identify and deploy the right one.
Related Case Study: Investing in PropTech solutions aids real estate firms streamline and digitize their existing processes. See how we came up with an innovative web-based application for a leading real estate brokerage to integrate their processes around a single platform here.
[Courtesy – Saïd Business School, University of Oxford]