The real estate industry is going through considerable changes. From an initial plummeting of prices to it returning full force once things have settled, the changes that are happening are drastic and merits looking into. There’s an increase in demand that the supply barely meets, there’s been a dispersion to the rural areas, and people are looking to buy bigger houses again. These trends are mainly brought about by the pandemic’s effects, and experts predict that these changes are here to stay.
This article will take a look at the recent trends within the real estate industry and how they can affect future trends.
There’s Not a lot to Choose From
Despite the initial crash of the real estate industry, real estate inventory is low. Simply put, people are buying houses at a significant pace that the supply cannot meet the demand. This shortage in real estate is mainly the result of real estate professionals purchasing properties during the crash mentioned above and turning them into fixer-uppers or properties for profit.
House hunters need to broaden their search to find a property within their budget, or at the very least, sacrifice some aspects of what they’re looking for. This trend is proof of an adage that goes, “every crash is followed by a boom.” And we’re seeing it in action right now.
It’s Still at an Upward Trend
Real estate prices are still rising— almost 20% higher. This growth is foreseen to reach 4.4 percent by 2022. The recovering economy plays a significant role in this upward trend, combined with the millennials finally reaching a point in their life where they want to buy a house.
Because of the pandemic, most millennials are now in the housing market to find a property they can use for a work-from-home setup. Combine this with older generations looking for properties outside urban spaces. The demand has far exceeded the initial drop at the start of the pandemic. For sellers, this means well. But even buyers can benefit from this trend, especially if they’re smart with their purchases.
Cleanliness is a Critical Factor Now
Because hygiene is an important factor in real estate, cleanliness is an integral factor with real estate nowadays. While this largely concerns home sellers, home buyers are also beginning to worry about cleanliness and hygiene because of the pandemic issue.
Professional services of janitorial cleaning businesses are now in demand to guarantee the safety and cleanliness of the property, and most homebuyers expect the sellers to follow safety guidelines. Sellers looking to sell their properties faster will do well to advertise having that their property is cleaned, as buyers are more likely to purchase a house they know is germ-free.
Out of the City and into Rural
As mentioned in the previous points, the pandemic has significantly affected the housing market. That’s not just in the prices but also in the specificity of the demand. More home buyers are looking outside the urbane areas for properties and looking at rural areas to find a home.
65% of rural properties for sale were bought within 2021. This is a noteworthy figure, especially compared to figures from the past years. This, of course, drives the property shortage even more, and as mentioned in the first point, contributes to the ever-increasing rise in real estate prices.
Larger Homes Are Popular Again
For the past few years, the tiny house movement has dominated both traditional and social media. Even the real estate industry was inundated by inquiries for smaller properties. However, being forced to work and study from home has turned this trend around. Now, people want bigger houses.
Homebuyers are looking for features not otherwise available in most houses made in the pre-pandemic era, and these features are mostly: an outdoor space and a home office. These two features are highly reflective of what home buyers are clamoring for, as it is what many have lost because of the pandemic.
It’s a Seller’s Market Now
Essentially, all of these aspects combined point to a similar direction: we’re living in a seller’s market. In simple terms, it’s the best time for sellers to be putting a property up for sale as the profits and the demand are high.
Those who invested in real estate years ago would highly benefit during this period. This proves that real estate always goes back to being in demand. Perhaps it’s now the time to consider investing in real estate. You might even experience the same benefits and profits the professionals in it do.