Expected Real Estate Trends 2018
The 2018 Housing Market: What to Expect This Year
Every year, there’s a lot of speculation across the industry about the home buying trends of the coming year. Real Estate Trends 2018 is no exception. There have been a lot of things discussed within real estate and mortgage lending, but what will be the top factors informing the decisions and market of the coming year?
No matter what side of the table you’re on, from Realtors and Lenders to home buyers, there will be some big things to think about as the calendar flips to 2018. Let’s take a look at just a few of the expected trends for Real Estate Trends 2018.
Online presence and branding is essential.
Specifically among Realtors, the need to maintain an online social media presence is becoming unavoidable. Many more experienced real estate agents or brokers have been reticent to join the information age, but this will be the dividing line between success and failure.
As younger home buyers enter the market, even if it’s at an older age than their Baby Boomer counter parts, they will be the most tech savvy generation of consumers. They will look to Facebook and social networking to determine which professionals they want to work with.
Social media will be the platform to mass market everything.
For this reason, social media will become the new marketing platform. Whether it’s sharing a home for sale or talking about new loan products, the first place these consumers will look is online to see what other are saying.
What’s most important is to create engaging and sharable content on these social media platforms. It’s possible a product isn’t right for the initial reach, but as they share with their networks, it could reach a wider and better audience.
Smart home automation will pick up steam.
As the technology gets better and more reliable, smart home features are becoming very popular in the home buying market. So if you thought products like Google Home or Amazon’s Alexa were just fads, it may be time rethink that.
Many home buyers are looking to add smart technology to their homes beyond just the small personal assistant devices. Smart appliances, surveillance and safety systems, and more are all becoming popular, so it’s helpful for those in the industry to be aware.
Generalists are making way for specialists.
For a long time, real estate agents were everything to everyone. Generalists are able to handle any type of transaction, which meant more business in the past. But as the market is changing, consumers are looking for specialists to help them with their specific needs.
The same is true for lenders, which may be why the hands-on approach of lending companies are reaching a wider audience than the big banks. These independent agents have the ability to specialize in products that fit the needs of each client who enters their door.
The next generation is joining the economy.
Each generation brings something new to the table, both challenges and benefits. There is a lot of information about how Baby Boomers buy homes. And a lot of people have been talking about Millennials, the oldest of whom turned 38 this year. Generation X often feels a little left out, but they’re still firmly in the marketplace.
But we can’t just stick with three generations. Professionals need to be aware of the upcoming Generation Z. Starting with those born in 1993, many are just now graduating from college and beginning their careers. That means they will enter the economy and, either now or later, become consumers in the housing marketplace.
Steady growth for home prices.
Market researchers have been noticing that the prices for homes throughout the country are on the rise. Some states are even seeing prices higher than what these areas had experienced prior to the collapse that started in 2007.
It’s important for realtors, lenders, and consumers to be aware of these trends and to consider all of the possible options when it comes to buying and financing to ensure the safety and security of their investments. When it comes to high-demand markets like Asheville and the Bay Area, they are likely to continue to see this increasing numbers.
Challenging housing inventory.
At the same time, especially in these two desirable geographic areas, there is also a shortage of housing inventory. The challenge isn’t just affordable homes, but also the lack of overall inventory when houses are often purchased by motivated buyers who may be willing to pay more than the asking price.
It’s important to track this trend as housing inventory may be the single most challenging aspect of the future of real estate and mortgage lending. What happens if there is a shortage? And, in some cases, what happens to the local economy if the housing market stalls?
Affordable housing will continue to be an issue for cities.
One of the biggest challenges that cities are facing is a lack of affordable housing. Even if the inventory is there, if the individuals working jobs within the community can’t afford to live there, it can devastate the economy.
Some cities are looking at alternatives for affordable housing. Asheville allows for homeowners to build accessory dwelling units that can be rented as more affordable homes for local employees. Home prices are also tied into the rental prices throughout an area, so without affordable housing to buy, it can even affect those who prefer to rent.
Do you want to better understand how the Real Estate Trends 2018 will affect prices, lending, and rates? Contact the team at Prime Mortgage Lending, Inc. to see what’s in store for Real Estate Trends 2018.