Real estate is a complex and dynamic part of the economy influenced by various drivers, and is therefore subject to trends in the market. Whether you’re buying, selling, investing, or just plain curious, keeping up with real estate market trends is key to making smart choices. In this post, let’s go deeper and look at the real estate market’s current condition and trend analysis.
The supply vs. demand relationship forms the foundation of the residential real estate market. Over the past few years many places have experienced housing shortages resulting in high demand, and higher property values. When thinking about buying or selling a property, knowing the area’s supply and demand picture is critical.
Mortgage interest rates have a huge effect on real estate markets. As rates fall, it makes it cheaper for people to borrow money to buy a house which increases demand. On the other hand, higher interest rates may discourage buyers, causing the market to cool down.
The pandemic hastened the urbanisation patterns. Many people and families have rethought about living in urban areas packed with masses of people and decided on moving to either suburban or rural areas. This change has fueled demand for property in the suburbs and countryside.
Technology has transformed how real estate deals get done. Now, virtual tours, 3D imaging, and online listings are the new normal. Proptech in real estate is growing, as new solutions are coming up for buyers and sellers.
More and more, potential buyers are focusing on energy-efficiency and sustainability when choosing a home. Homes with green certifications and sustainable features often have premium ask and pull in environmentally cognizant purchasers.
Remote work has changed the selection process for properties. Open spaces, big living rooms, good high speed internet, and working from home — all are features becoming absolutely necessary to many house hunters.
The rental market follows the real estate market closely. Demand for rental properties has skyrocketed in certain parts of the country due to a change in lifestyle and rental rates have been impacted as well by economic conditions in others.
Housing affordability is still an issue in many regions of the world. This has created barriers for many first time homebuyers and lower-income households with the increase of Property values in the area and limited affordable housing option.
Real estate remains one of the most popular investment classes out there. Real estate property, residential, commercial, and industrial, is drawing in investors — from REITs, for example. Conducting research and market analysis is important in finding profitable investments.