Interesting Real Estate Trends to Look Out for
There is so much happening across the country and the world, you might be wondering what are the real estate trends to look out for?
Where can you find real estate up to date real estate trends? What causes real estate trends? How do you track real estate trends? Will we see more skyrocketing home values? Should I buy a house now?
Whether you’re selling, buying, or holding, here are the real estate trends to watch!
We will also cover and answer
- What causes real estate trends
- Where you can find up to date real estate trends
- Is housing market going to crash?
- Will the prices of homes go down in 2022?
- Should i wait until 2022 to buy a house?
- How to track or predict real estate trends
- How to use real estate trends to predict the next housing bubble
- What are the next big trends in real estate technology?
- What are the real estate trends in an election year?
- Commercial real estate trends
Real Estate Trends to Look Out for
What are real estate trends?
To begin, a real estate trend is any consistent pattern or change in the general direction of the real estate industry which, over a period of time and is statistically evident change.
What are real estate market trends?
Real estate market trends are a set of aggregated property market statistics that allows you to analyze various segments of the property market to get deep insights..
What are these real estate trends?
Millennials will become first-time homebuyers
Millennials in Kenya add up to 10.1 million out of Kenya’s population of 49.7 million, this is according to US-based Population Reference Bureau (PRB) data.
Considering that the middle group of homebuyers from this generation is now earning a decent salary, many economists believe millennials will begin investing in the real estate market in 2022.
Conventional loan requirements are less stringent, making it easier to buy a home
Loan guaranteeing guidelines have loosened a lot making it easier to buy a home today. The way conventional lenders have encouraged home buying is by lowering the down payment required along with the credit scores to qualify.
Unfortunately, lenders are also allowing for higher debt levels. Many borrowers who were turned down in the past can now obtain a mortgage through lenders.
Mortgage rates are expected to remain lower for the near future.
Low and stable mortgage rates stimulate the real estate industry.
There has been an increasing uptake of mortgages with relatively low rates, especially with the push and more focus on affordable housing agenda fulfilled.
Upcoming cities are experiencing significant growth
In general investors have a trend of looking to secondary options instead of spending so much in major housing markets. This is expected to continue through 2022.
Many major real estate companies have driven this trend by opening new branches to affordable areas. An example of this move is Username Investments establishing a branch in Nakuru City in Kenya to sell more affordable land.
The competitive housing landscape has fuelling amenity-rich apartments
Today’s best multifamily developments are incorporating movie theatres, communal gardens, laundry services and even co-working spaces.
This is building competition and leading to developers having more amenities in their properties.
Home presentation is becoming a big business.
This is another real estate trend where decluttering is key for getting the best price for your home when it is time to sell.
There is proof that sellers get substantially more if they put their homes on the sale stage their homes.
Video marketing is gaining momentum
Buyers expect to see videos of the homes and properties they want to buy.
Thus, video marketing and virtual tours are a necessity and real estate developers will continue to embrace them
Differentiation among properties will widen over time
Property users are willing to pay a premium rent for buildings in well-located areas or for those that have modern features. This is leading to a growing differentiation among properties.
Well-located buildings near consumer populations offer benefits in the form of revenue generation and cost control because they allow users to offer fast delivery times and cut transportation costs.
However, new supply is very scarce, yielding low vacancy rates and high competition for limited space available
Online Real Estate Services will continue growing
It is with no doubt that real estate services have gone online and you are able to list, sell and buy properties online. This is expected to grow further especially with the growth of e-commerce, AI, Virtual agents, etc. This will also lead to increase mobile closings.
Rise of ‘Risky’ home buying options will be more available
Some of the trending ways which are risky include;
- Rent-to-Own -If you desire to buy a home but cannot afford it yet, developers are offering rent-to-own agreement. This give you a chance to get into a house fast, without waiting to save a down payment. Also, you don’t have to qualify for a mortgage right away.
- Down Payment Loans – This is another risky real estate trend where you take a personal loan to fund a down payment. That’s the same as buying a home with 0% down because you borrowed the entire cost of the house
A real estate market crash looks unlikely
With all the uncertainty behind everything that happened in 2020 and 2021 due to Covid – 19, you might be wondering if the housing market will collapse. Well, economists suggest a housing crash is unlikely.
This is major because low mortgage rates motivate buyers to enter the market, which increases demand. But there’s still a very low supply of home listings, especially the affordable segment.
This keeps home buying competitive and allows home price growth to soar. Therefore, this year you can comfortably buy a house, land, or a real estate property.
Consideration for mental health spaces
This will include mediation rooms and bathrooms where people can reflect and have some time to exhale and cultivate mental wellness.
How to track or predict real estate trends
By now you may be wondering how you can be able to track and predict real estate trends? Well, this video is for you. I will give you tips on how to analyze real estate market trends and trends in 30 minutes a day
Check historical data
Before seeking to understand where the real estate market is going, first, understand where it is coming from.
Reviewing online real estate market performance reports for the past years makes it easy for you to know what has been in the market and selling at what price and what is expected in the future.
Research more on your target market and also neighbourhood
If you desire to know more, get as much information as you can from all sources. Some of them include a general real estate market overview, data on population, interest rates and job growth, life rankings, market activities, etc.
This will help you predict real estate trends easily.
Use several sources with transparent data
This is where you can use the internet to research more and filter out biased data.
Other sources of data include newspapers, websites, social media, investments clubs etc.
Get property estimates in your area
Calculating the average sale price per square foot for property for sale in the area you are considering is a good way to determine an approximate property value estimate.
Local real estate agents, property valuers, property management companies, online listing databases, and the county assessor website are all good resources to use.
Get the average price of similar properties
Once you gather your data the next step is to calculate the average and generate a prediction of how much you will spend on the same property if you are to purchase it.
Where can I find up-to-date real estate trends?
Would you like to be knowledgeable about all real estate trends on daily basis? Whether you are selling or buying, you can take advantage of the current real estate market trends by partnering with a professional real estate agent who can provide you will unbiased data to make decisions.
Conclusion
Predicting and tracking real estate trends is easy and straightforward. Do you have any questions share them below?