The real estate industry is volatile, and changes can happen seemingly in the blink of an eye. However, there are emerging patterns that investors can follow to stay ahead of the game. Here are three interesting and important trends in today’s real estate industry.
Focused Housing Demand
Many of the jobs today are office or service jobs. People need to be where the opportunities are. Large urban areas provide the widest choice of work options and availability. For now, investors can expect housing demand to keep increasing. This means housing prices, both for home purchases and for rentals, will continue to rise in large markets such as major cities and near suburbs.
Properties that are for sale but are not included in official industry databases are called off-market listings, pocket listings, or quiet listings. Real estate agents handling these properties must get creative in finding buyers. Formerly, off-market listings were less common, but they have become more popular with homeowners today. Now there are specialized services that help connect agents with those who want to buy off market property. These properties offer benefits for both buyers and sellers.
- Sellers choose this strategy to have more privacy during the process, pay lower commissions, and even create a perception of exclusivity that could raise prices.
- Buyers appreciate off-market listings because they offer inside access to properties in popular areas, generally lower commissions, and an easy way to pick up extra properties.
Those looking to purchase off-market properties may find negotiating prices more difficult.
Increased Opportunities for Landlords
With home prices rising, many people cannot afford to buy, so they must rent. This demand will drive rental prices up. However, the percentage of those able to afford to rent a single-family home is decreasing. Therefore, investors may want to consider focusing on apartment complexes or spending money to divide larger houses into multiple-family dwellings.
Even in the changing world of real estate, industry insiders notice patterns that savvy investors can use to their advantage. By paying attention to trends and market conditions, investors can enjoy big profits with fewer headaches.