The impact of the Covid19 pandemic has been enormous on real estate businesses. It has been a rough ride for the real estate market globally as the pandemic effects have left their marks on most of the real estate markets. Interestingly, Covid19 triggered massive demand for large properties among first time home buyers and experienced home buyers closely following the listings of new homes for sale Calgary. Shifting home buyer demographics and emerging technologies have created a churning in the real estate industry in recent years, and the pandemic has only accelerated the process. These factors have influenced traditional real estate transactions in more ways than one, from listing properties to the time it takes to close property deals, generally referred to as closing times.
Real estate investors need to understand which way the industry is heading and adapting to these changes. This article should help you prepare yourself so that you are ready for the future real estate industry.
In Vancouver, BC, home prices have spiked due to record low interest rates in the lowest per cent, and detached home prices sky rocketed in 2020. Now in Western Canada, especially in British Columbia, condos are now registering double-digit per cent increase year of year and the Vancouver real estate market leads the Canadian housing market in gains. The seller's market is in full speed in Metro Vancouver. Despite the stress test and COVID-19 lockdowns, first-time buyers lead the price increases.”
Technology is driving the change
As the real estate industry is adapting to new changes, it is experiencing rapid changes that are gaining momentum due to the influx of capital. The inflow of significant money in the industry is an indication that the industry is preparing to embrace rapid changes by creating new digital resources. Investors must upgrade their technical skills to become familiar with online property listing platforms, virtual reality, and smartphone apps that will impact every aspect of real estate transactions.
Property buying and selling will become very easy as investors will see a sharp increase in property listing websites. Platforms like Trulia and Zillow that ushered in the trend will see the addition of new platforms rapidly. Since online listing platforms are quite transparent and carry a lot of information about the listed properties, buyers and sellers will have more clarity about what they are looking at when searching for properties.
Neighborhood viewing by using aerial drones
It will no more require spending many hours to conduct a reconnaissance survey of the neighborhood physically at the location. Instead, prospective buyers can view the neighborhood by looking at images captured by surveillance drones that help them get a feel of the place without actually being there. They can view the entire neighborhood and its landmarks like schools, hospitals, markets, amenities, businesses, infrastructure, etc. With the pandemic restricting community tour options, aerial drone videos and photography have aptly substituted it and perhaps provide better insights than what physical tours can reveal.
The various restrictive measures of Covid19 have significantly curtailed the opportunities for physical tours of properties. Prospective buyers find it challenging to inspect properties by visiting the site while ensuring proper safety by maintaining the health protocols. As a result, real estate agents are organizing virtual tours of properties to ensure clients' safety while satisfying their needs to the fullest. Homebuyers can now have a closer look at properties and view every detail minutely and repeatedly from the comfort of their homes. The trend is fast becoming popular and will become an integral part of the future real estate business.
The future of the real estate market
Turning to suburban areas – As the new wave of home buyers led by the millennial and Gen Z keeps dominating the housing market, real estate marketers expect a significant shift. The new-age home buyers' focus is on suburban areas, which a paradigm shift from the earlier home buyers who preferred city is living. Although suburban housing development has been there for years, there could be some exciting shifts in the future of real estate. The new-age buyers are showing more interest in proximity to community resources and walkable neighborhoods.
The shift should encourage new investors in real estate as suburban areas can present new markets with retail spaces and mixed use.
Metropolitan areas will see more amenities – In the urban areas, real estate investors must be ready to deal with renters of all ages demanding more amenities. In the present scenario, trash pickup and parking spaces are considered amenities that attract renters, but they will likely not suffice in the future. Moving forward, more new features will constitute the amenities with people looking for roof access, common areas, and even some people demanding designated workspaces.
Luxury properties will be in demand – According to experts of the industry, the future will see a spurt in demand for luxury properties. Some areas, in particular, will experience exceptional demand compared to other places.
Green buildings – As the concern for a cleaner environment keeps growing, the real estate sector's impact will become visible. More constructions of green buildings and other eco-friendly structures will be a core area of the industry moving towards a technology-driven future. More focus would be on energy-efficient buildings, which will influence the decision of almost 80% of homebuyers. Insulated doors and windows, above code insulation, and Energy Star appliances are what homebuyers would be looking for to enjoy healthy and comfortable living while saving considerably on energy costs.
Technologies will play a determinant role and influence the future of the real estate industry. Factors like changing demographics of homeowners and buyer-agent relationships will decide the course of the sector. The industry will go through several changes due to rapid technological adaption that will shorten the closing times by speeding up transactions. Armed with more info, buyers will be able to make better decisions and faster that will contribute to the industry's evolution that prepares to cater to the new-age buyers' demands.
There is no doubt that the transition of the industry that began a few years ago will gather speed. The future of real estate will have a lot to offer to make investors have a relook at their strategies. You need to have an open mind to adapt to these changes whether you are a seller or buyer in real estate. It will give you new ideas and innovations to make your task easier and make the experience enjoyable.