If you’re a prospective buyer or seller, it’s important to understand the current real estate market conditions and how they affect you.
Here are three hot topics from the list and how they impact today’s housing market:
Technology Acceleration and Innovation
The past year ushered in many changes to the real estate industry, especially when it comes to technology.
There has been an increase in lockdown-driven changes in our work, in the economy, in social structures, and in our personal behavior. The acceleration and adoption of technology during the past year has impacted everything, with real estate being no exception.
When it comes to real estate, there have been innovations like digital documentation, virtual tours, and video chat that allows agents to connect with clients no matter their location. These options are typically more ideal for prospective buyers and sellers who aren’t local to the area or those that need some added flexibility when it comes to signing documents online or doing virtual tours. This is why many trusted real estate advisors will continue to use these technologies moving forward in order to best serve clients.
Remote Work and Mobility
Working from home has became the reality for many individuals during the pandemic, and remote work and mobility has been identified as an important influence on the real estate market.
One the last year the pandemic has universally caused a movement away from urban cores. This is particularly true for those with higher incomes that can afford to move and for lower-income individuals seeking lower costs of living. Most of these relocations remained within their original region and, while some are returning, it is unknown as to the permanence of these movements or whether they represent a true urban exodus.
With the added mobility remote work offers, where people are moving and where they can ultimately purchase a home is less dependent on a physical office location. This newfound flexibility is giving remote workers the opportunity to move to more affordable areas and buy more home for their money.
Housing Supply and Affordability
The limited supply of houses for sale and the related affordability challenges is a huge factor in the current housing market. 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.
There is good news. Homes are still more affordable than they have been historically thanks to today’s low mortgage rates. And while housing supply is still low, we’re seeing steady increases in the number of homes coming to market, which gives hope to homebuyers. As the supply of homes for sale improves, buyers will have more options.