If you’re a prospective buyer or seller, it’s important to
understand the current real estate market conditions and how they affect you.
The Counselors of Real Estate (CRE) just released its Top Ten Issues Affecting
Real Estate report. Here are three hot topics from the list and how they impact
today’s housing market.
Technology Acceleration and Innovation
The past year ushered in many changes to the real estate
industry, especially when it comes to technology. The CRE report elaborates on
this:
“Lockdown-driven changes in our work, in the economy, in
social structures, and in our personal behavior have pushed our reluctance
aside. The acceleration and adoption of technology during the pandemic has
impacted everything, and real estate is no exception.”
For real estate, innovations like digital documentation,
virtual tours, and video chat enable agents to connect with clients no matter
their location. These options are ideal for prospective buyers and sellers who
aren’t local to the area or those that need the added flexibility signing
documents online or doing virtual tours provide. That’s why many trusted real
estate advisors will continue to use these technologies moving forward to best
serve their clients.
Remote Work and Mobility
Working from home became the reality for many individuals
during the pandemic, and the latest list from the CRE identified remote work
and mobility as an important influence on the real estate market. As the report
notes:
“…the pandemic universally caused a movement away from
urban cores, particularly for those with higher incomes who could afford to
move and for lower-income individuals seeking lower costs of living. Most of
these relocations remained within their original region—84%—and, while some are
returning, it is unknown as to the permanence of these movements or whether
they represent a true urban exodus.”
With the added mobility remote work offers, where people are
moving and where they can ultimately purchase a home is less dependent on a
physical office location. This newfound flexibility is giving remote workers
the opportunity to move to more affordable areas and buy more home for their
money.
Housing Supply and Affordability
Finally, the limited supply of houses for sale and the
related affordability challenges also makes CRE’s list of key factors this
year:
“According to the National Association of Realtors®, the
state of America’s housing inventory is dire, with a chronic shortage of
affordable and available homes needed to support the nation’s population.”
There is good news. Homes are still more affordable than
they have been historically thanks to today’s low mortgage rates. And while
housing supply is still low, we’re seeing steady increases in the number of
homes coming to market, which gives hope to homebuyers. As the supply of homes
for sale improves, buyers will have more options.
Bottom Line
New technology, remote work, housing supply, and home
affordability are key factors in the housing market right now for both buyers
and sellers. If you want to better understand how these topics can impact you,
let’s connect today.
Source: Real Estate with Keeping Current Matters
