If you’re a prospective buyer or seller, it’s essential to understand the current real estate market conditions and how they affect you.
Technology Acceleration and Innovation
The past year ushered in many changes to the real estate industry, especially regarding technology. The CRE report elaborates on this:
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 digital documentation, virtual tours, and video chat enable agents to connect with clients no matter their location. These options are ideal for prospective buyers and sellers who aren’t local to the area. Those who need the added flexibility to sign documents online or do virtual tours benefit, too. That’s why many trusted real estate advisors will continue to use these technologies moving forward to serve their clients best.
Remote Work and Mobility
Working from home became the reality for many individuals during the pandemic. The latest list from the CRE identified remote work and mobility as an important influence on the real estate market. As the report notes:
…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 the added mobility remote work offers, where people move and ultimately purchase a home is less dependent on a physical office location. This newfound flexibility allows remote workers to move to more affordable areas and buy more house for their money.
Housing Supply and Affordability
Finally, the limited supply of houses for sale and the related affordability challenges also makes CRE’s list of key factors this year:
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.”
There is good news. Homes are still more affordable than they have been historically, thanks to today’s low mortgage rates. Also, while housing supply is still low, we’re seeing steady increases in the number of homes coming to market, giving homebuyers hope. As the supply of homes for sale improves, buyers will have more options.
New technology, remote work, housing supply, and home affordability are critical factors for buyers and sellers in today’s housing market. Connect with your trusted real estate advisor to better understand how these topics impact the buying and selling process for you.