We can now safely report that 2016 entered the books as a boom year for the real estate market. Investors and sellers alike saw high profits from a seller-driven market.
At the turn of the year, real estate was poised to head into another fantastic period of high revenue and high market share, with the promise of continuing positive potential among the market trends for the coming year.
Stats Prompt Optimistic Predictions for 2017
According to the National Association of Realtors (NAR), 2017 is expected to show an average national growth of about three percent for existing home sales. That’s the highest in nearly a decade.
Residential real estate performed especially well last year, according to research. Sales grew about 13 percent compared to 2015, and forecasts predict another hot year coming. The NAR is expecting home sales to top 6 million in 2017, which would be up from 5.6 million in 2016.
Real Estate Trends Worth Watching
This growth will be accompanied by a variety of trends to help the market flourish. Anyone looking to maximize profits in this area can benefit from watching the following trends closely.
Sales of real estate almost always vary according to the region. Factors such as weather and local economy can have a huge influence on pricing and one’s ability to sell.
Certain areas of the nation can boast of better markets than others based on these factors. They include:
- Jacksonville, FL
- Grand Rapids, MI
- Tampa, FL
- Colorado Springs, CO
- Charleston, SC
- San Antonio, TX
- Phoenix, AZ
Florida is doing particularly well in the real estate sector. Investors would be wise to focus on this market if they wish to capitalize on their real estate earnings.
The Use of New Technology
Tech is now a staple for moving properties. Not only has online marketing taken over the real estate market, but specific tech has made the sale of properties easier than ever.
One tool increasingly used for real estate marketing are drones, or unmanned aerial vehicles (UAVs). “Location, location, location has now become perspective, perspective, perspective,” a chief executive of Autel Robotics USA explained to Market Watch.
“If you have a property [to sell] with more than an acre of land or a unique perspective, it’s a good reason to bring in a drone.” People love the unique views they can enjoy of land and structures when they shop online. It makes them feel closer to the actual property when they weigh a potential purchase.
Apps for productivity, organization, promotion, and other functions can also help real estate agents, investors, and sellers to move properties. Technology is developing steadily to advance every industry, and real estate is no different.
Limited Suburban Living
Rates of home ownership are lower than ever, since millennial and generation Y consumers have opted to rent instead of buying. “This group of people includes anyone born between 1980 and 2000, and they’re an ideal target audience for your rental property,” says an article from Houston realtors and property managers Green Residential.
“They love the freedom and flexibility that come with renting rather than buying.” As a direct result, suburban living is down, and urban homes are on the rise.
Youthful and middle-aged home buyers are looking for places in the city, such as townhouses, apartments, and smaller single-family homes. Suburban real estate is still doing well compared to years past, but demand for real estate in the city is growing rapidly.
If you’d like a shot at making a mint on this trend, you should look into rental opportunities in urban areas.