title
July 2018   Volume 44, Number 7      
 

1

Top 7 Trends Affecting Residential Real Estate

As home buying trends shift, the number of residents in metro areas across the country is expected to grow at a faster pace for at least the next two decades. Larger numbers of residents mean more housing and more attention paid to residential real estate markets.

Here are the top seven trends that are expected to impact local residential real estate the most in 2018 and beyond.

  1. Supply Continues to Decline: According to Lawrence Yun, chief economist of the National Association of Realtors, overall housing inventory in the U.S. “is currently near historic lows.” This trend continues despite a rise in new home construction in January, according to a report from the U.S. Department of Commerce.
  2. Smart Homes Are on the Rise: Smart home technology will gain greater adoption as it is incorporated into new home designs. Smart home technology includes everything from thermostats that can be remotely configured from a smartphone to simple upgrades, such as gadget charging stations built directly into a kitchen countertop.

    Finally, these devices are in addition to the energy-efficient measures that homebuyers are already demanding for energy conservation and to save money on utility bills.
  3. Tech-savvy Homebuyers: Homebuyers are already more likely to use online tools when searching for a home to buy. David Williams, a Realtor with Century 21 Sweyer & Associates, said buyers already come to him with lists of properties they want to see after researching them on real estate websites, such as Zillow.com.

    For agents, these websites have also become premier destinations for buying real estate leads thanks to their highly targeted online traffic.
  4. More Realtors: The number of people who decide to become Realtors typically declines when the economy is down and increases once it rebounds. Currently, the number of Realtors is on the rise. In recent years, local real estate companies across the nation have expanded and added new offices.

    “We’ve seen a consistent growth in our real estate school. We run typically about two or three classes at a time, and those classes will have 30 people in them,” said Tim Milam, president at Coldwell Banker Sea Coast Advantage in Wilmington, Del. “Go back five years. Those classes would have had 15-20. So as the market’s gotten better, more and more people are getting in the business, and I think it’s going to continue for another couple of years.”
  5. Remodeling Instead of Moving: As home prices continue to soar, some homeowners are opting to remodel their homes instead of moving to a new home. A tight supply of residential properties in many markets also means that other people who want to move are turning to the resale market rather than purchasing new homes. In turn, this also causes a shift toward the remodeling market, according to analysts from the data firm Metrostudy.
  6. Homebuyers Want Smaller Homes: Realtors have confirmed that buyers of all age groups, from baby boomers to millennials, are opting for smaller homes. Though they may have purchased something larger in the past, these days they are opting for less square footage. The demand for townhomes is also on the rise.
  7. Residents Are Moving Farther Away From Urban Cores: With home and rental prices becoming increasingly unaffordable in larger city centers, real estate industry experts maintain that the growth in residential real estate will expand to nearby areas away from urban cores.

[return to top]

 

 

 

 

In this issue:

Top 7 Trends Affecting Residential Real Estate

Amazon Expands into Real Estate With Amazon Experience Centers

Banks Are Walking Away from Low-Income Homebuyers

Homebuyers Seeing Lower Asking Prices in Several Hot U.S. Markets

Housing Confidence Reaches New High as Home Prices Jump

The Best Day and Time to List a Home for Sale

Top 10 Most Affordable Places to Live in the U.S.

Why Americans Are Leaving Urban Cores for the Suburbs

The Best Places to Live in the U.S. for 2018

5 Tips to Help You Get Your Client’s Asking Price

 


The information presented and conclusions within are based upon our best judgment and analysis. It is not guaranteed information and does not necessarily reflect all available data. Web addresses are current at time of publication but subject to change. Smarts Publishing does not engage in the solicitation, sale or management of securities or investments, nor does it make any recommendations on securities or investments. This material may not be quoted or reproduced in any form without publisher's permission. All rights reserved. ©2017 Smarts Publishing. Tel. 877-762-7877. smartspublishing.com