The views of this article are the perspective of the author and may not be reflective of Confessions of the Professions.
Real estate has undergone some dramatic changes over the past few years. That’s because of technology, economic shifts, and changing tastes in the real estate market. It is important to stay on top of these changes in order to better understand where the real estate game is going. Here is a look at five big changes in real estate over the past 10 years.
Right now, we are seeing more and more brokers going completely cloud-based. This allows the brokers to better work with agents to find the homes that the agent’s client wants. This has also allowed brokers to have more flexibility when coming up with deals and helping agents. As the real estate market continues to evolve, we will see more online brokers working across all real estate markets in the United States.
Thanks to Matterport’s popular 3-D camera system, we are seeing more and more agents and brokers using 3-D walkthrough tours in their listings. With a 3-D walkthrough tour, a prospective buyer can virtually walk through any part of a house, zoom in on certain areas, and get a complete view of the ceiling as well as the floors. These 3-D house tours have become common in higher-priced homes. However, it will not be surprising if 3-D walkthroughs will be as widespread as video home tours over the next coming years. That’s because the cost of the 3-D camera technology has gone down. Also, there are a number of 3-D home photographers now working in all top markets.
The real estate markets seem to be only speeding up since the housing crash of 2008. That means buyers have to be more aggressive when making offers. In hot markets, it is not uncommon for a seller to get three offers during one open house. Some of the fastest moving markets include the higher level listings in Miami, Los Angeles, and New York. The acceleration in home sales could be due to a number of factors. First, you have more and more foreign buyers who are simply parking their cash in high-end real estate. Also, you have a lot of “panic” buying from those who think they are going to get priced out of a certain market. Finally, you have historically low-interest rates that will naturally raise the price of all real estate transactions.
In the past, people would start their home search by calling a broker or driving around a neighborhood looking for homes with “for sale” signs on the lawn. Today, people begin their home search online and may have looked at hundreds of home listings before contacting a broker. This allows the buyer to be better informed about the market that they are looking to buy. In fact, by the time the buyer comes to the real estate agent, the buyer already has a good idea of what neighborhood they want to live in and what properties they want to look at.
From the end of World War 2 to the early 2000s, most communities were built around the automobile. In the past ten years, we have seen the emergence of the “walkable community.” These communities emphasize sidewalks and walking paths over motor vehicles. While these communities are located in the suburbs, they have a small city feel that embraces a sense of community. That’s because the homes are usually placed closer to each other with the garage located behind the house instead of at the front. Walkable communities should continue to grow as less and less people are buying vehicles.
A lot has changed in real estate. Today you have the emergence of online real estate brokers, 3-D walkthrough tours, faster-selling homes, well-researched buyers, and walkable communities. It is important to stay on top of these real estate trends because they will predict buy and seller behavior over the next few years. Learn more about these latest home buying and selling trends to stay ahead of the real estate game.