The 10 Top Emerging Trends That Will Shape Real Estate In 2018 – ids real estateMarch 7, 2018 Off By Montero Theo
The market of the real estate is full of ups and downs. The demand for homes for buying or renting is never balanced out. The real estate market trends for the year 2018 should be carefully followed by sellers and buyers. Understanding them will help the investors to assess the market fluctuations closely.
More homes for sale: New generation buyers: individuals with new jobs and that are planning to start a family are likely to buy homes in urban areas, whereas millennials near to retirement ages are likely to abandon their luxury condos and start looking for homes in suburban areas for the peaceful life.
Rise in mortgage rates: It is expected that the year of 2018 will notice the peak rates in the mortgage. While interest rates prediction is not accurate, mortgage rate will steadily increase throughout the year.
Increase in sellers: Due to new tax reforms and changes in housing policies, the year of 2018 can expect an increase in the sale of houses which will lead to more affordable homes for the buyers. Home buyers should, therefore, be ready for the market with aggressive competition.
Latest technology: The advent of technology has clearly affected real estate industry. Buyers and sellers are now going online or using apps to get real estate information. Virtual reality is giving the buyers a good tour of the home or property they are interested in. Sellers and buyers are trying digital options in the real market to save money and time.
Ease of loans: Obtaining bank loans in 2018 is relatively easy as banks are pursuing the buyers aggressively with various loan schemes. The owners who are buying homes for investment purpose will benefit at large with these loan options.
Rental market: A boom is expected in the rental market sector with many of the families opting for short-term rentals. The real estate market will see a rise in renting vacation homes and single bedroom flats. Competition for micro-unit living spaces in urban areas will gradually increase. This trend is expected to continue for the next decade.
Positive living spaces: Buyers and renters are likely to focus on flexible living spaces with a clean environment. Homes with better security and with the best accessibility to home needs are given top priority. Urbanization still remains a key factor for the growth of real estate business.
Low inventory: The demand for homes does not meet the supply of the buyers. 2018 will experience the shortage of inventory. The unstable market situations over the past year are the reason for this shortage.
The rise in construction: With increased demand for homes in urban areas, real estate developers are likely to start new construction ventures. Prices for new homes increase and lenders are willing to invest money in loan-approving automation process.
Renovation over buying: The present homeowners are likely to choose home renovation than buying new homes with changes in tax reforms and increasing prices. Upgradation of homes is better for owners than paying lump sum money for stamp duty.
Authentic Intelligence: A Better Kind of AI in Real Estate – ids real estate
The impact of technology has crept into every known field but real estate sector has managed well to stay away from the technology changes. But the advances in virtual reality, artificial intelligence (AI), and the internet of things have brought some significant changes in this decade. These internet-based tools are now conducting various businesses just with the help of a Smartphone. In recent times, real estate sector has been showing significant changes and growth with AI. Clients are getting used to the changes and utilizing AI to save money and time. The real estate sector is able to reduce some operational costs, improve efficiency and reduce wastage of resources with AI.
Is AI helping real estate sector
With ever-changing technology, every field should embrace the changes as a part of evolution. The new data and technology are improving the efficiency and quality of work than ever before. These novel technologies may be helpful in achieving cutting-edge goals in major sectors but real estate may not be benefitting much from them even if they are integrated into the daily operations. Technology has helped professionals by creating better leads, pinpointing the prices, and has taken them closer to reaching their goals. Many jobs which are done by professionals are getting replaced with automation but real estate agents do not make the cut.
The current AI which replaced real estate agents is not achieving the full potential. Real estate agents can duly finish all the duties done by AI but AI has failed to capture the essence of realtors. Innate human behavior is much needed in real estate dealings which cannot be achieved with automation or robots. Real estate agents bring in their authentic intelligence for every transaction. Their trusted insight is much valuable and is more relevant to dealings in real estate.
Personal assistance and counselor
Virtual intelligence may be able to match the homes with buyer’s preferences but cannot guide them on the home tours. According to the buyer reactions and doubts, a realtor will be able to match the home of the client’s dream or make a promise to do the necessary changes to the property. Real estate agents can see the mood of the buyer and choose an appropriate time to close the deal. AI may be able to collect huge amounts of data regarding buyer and property but it takes an individual to sift through all that information before deciding on the deal.
Real estate agents act as counselors and confidantes who play important role in the home buying and selling experience which cannot be achieved by automation. Since buying a home is the biggest investment in the life of the client, realtors can empathize with them and give quick advice. A realtor is just a phone call away from the client throughout his buying journey. Real estate agents are the eyes and ears of locality in which the client is interested in buying. Finding the right balance between technology and humans is needed in every field to prosper.