Across the country, housing markets have seen their fair share of highs and lows. Buyers and sellers alike have had to navigate unique challenges and obstacles to meet their goals. The real estate industry’s professionals have faced similar challenges. They’ve had to navigate their industry’s fluctuations without losing sight of future predictions.
It’s good to know where the industry has been, but it’s also equally important to understand where it’s heading in order to make the right real estate decisions. There are five particular industry trends that potential buyers and sellers should be mindful of so that they can navigate the market efficiently and effortlessly in the near future.
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Digital House Hunting
During the COVID-19 pandemic, corporate offices chose to conduct virtual meetings in place of in-person interactions. The real estate industry followed a similar strategy. Real estate agents were tasked with finding ways to allow their buyers to view properties when they were unable to visit the home in person for the sake of social distancing. This included 3D virtual tours set up by property management companies and virtual staging.
Even though in-person tours are available now, virtual house hunting hasn’t disappeared. If anything, it’s gained momentum as a trend. Today, virtual open houses and tours have become an important part of the industry and are showing no signs of going anywhere anytime soon.
Rising Home Prices
The real estate market has been known to fluctuate between sellers’ and buyers’ markets. In 2023, however, many experts are predicting home prices will begin to rise once again. This is often dependent on the area, though it’s likely that, in some capacity, all markets from coast to coast will be affected.
The rise in prices has been correlated with the demand for sustainable, simple living. That’s where the tiny home comes into the picture.
Tiny Home Living
If you’ve turned on HGTV in the past few years, you’ve likely come across more than one show revolving around the idea of tiny home living. This type of living involves building a small home that measures approximately 500 square feet or less. Its purpose is to encourage downsizing and simple, minimalist living.
Across the country, you’ll see tiny homes and even apartment complexes in tiny home form. Some are built from scratch, while others will look to buy a Boxhub shipping container to renovate and convert into a livable space.
Even commercial developers are utilizing this idea to create new restaurants, cafes, and shopping opportunities to help local businesses serve their customers without steep commercial real estate prices.
Working from Home Continues
Remote working has changed the way many professionals engage with their companies, with many employers forgoing lease renewals and keeping all their employees working from home. In certain cases, some companies have adopted a hybrid model, with employees returning for a day or two per week and working from home the rest of the time.
Many employees are becoming more comfortable with this alternative working style. Its added comfort and convenience allow them to skip their daily commutes and adopt a better work-life balance.
Even in 2023, this is a continued trend that doesn’t seem to be changing anytime soon.