Current Housing Market Hot Topics
If you are planning to buy real estate or probably sell your home, it is important that you understand the current real estate market trends and how they can affect you.
The Counselors of Real Estate (CRE) just released its Top Ten Issues Affecting Real Estate report and here are three topics we find most impacting:
1. Technology Acceleration and Innovation
“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.”
Innovations like virtual tours, digital documentation, and video chat enable agents to connect with their clients regardless o the location. This is especially helpful for prospective buyers and sellers who are not local to the area. It provides flexibility in terms of document signing or being able to view the property even when they are away.
2. Remote Work and Mobility
“…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 added mobility, remote work offers, home purchases or rent are now less dependent on a physical office location. This means remote workers are now more flexible in moving to more affordable areas.
3. Housing Supply and Affordability
“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.”
Although the low supply of homes for sale has been an issue in today's real estate market, we are seeing steady increases in the number of homes coming to the market. Homes are also still more affordable than they have been historical because of low mortgage rates.