What’s going on in the real estate biz this year? We’re only a few months into 2017, but there are already several trends affecting the industry. Market, cultural, and demographic factors can have a big impact on real estate supply and demand.
Agents who adapt to emerging economic, technological, and architectural trends are able to grow their business and make their clients happy.
10 trends on the horizon for 2017:
- West is the Best: Cities in the west are forecasted for a 5.8% price increase and 4.7% sales increase. Eleven of the top 25 housing markets are in Western states like Arizona, California, Oregon, and Washington.
- Urban + Suburban = “Surban:” Also known as 18-hour cities and “walkable” neighborhoods. Buyers, especially millennials, want the best of both worlds: trendy restaurants, music ventures, and shops plus good schools, clean parks, and low crime. Surban neighborhoods are more inclusive and more affordable. Emphasize this trend for houses in these hybrid areas.
- Drones: These little gadgets aren’t so sci-fi anymore. You can get high-quality drones for a few hundred bucks. Launch into the sky to get breathtaking photos and footage of properties with lots of land or great views. Do live aerial tours on social media.
- Millennials: Many millennials will be buying their first house this year. In 2016, 37% said they can save enough for a down payment, according to the National Association of REALTORS®. Millennials will be dominating Midwestern markets.
- VR: Millennial consumers are expecting the high-tech sell, and that includes things like virtual reality and 3-D home tours. VR is a great way to get people buzzing about your properties. With a virtual 360-degree view of a house and landscaping, buyers can feel if the rooms are big enough plus they can beam in hologram furniture.
- Mobile Marketing: Everyone has a smart phone now, so just about anything can be done on a mobile device. Realtor.com and Zillow apps for listing data, photos, video tours, and neighborhood information. Facebook and Twitter for marketing, Instagram and YouTube for audio-visual ads, plus apps for mortgage calculations, reports, and document management.
- Smart Homes: Energy efficiency and smart features have popped up on many trend lists recently. Set your listings apart by playing up sustainable materials, smart lighting, automated temperature controls, thumbprint-operated security systems, and refrigerator camera These aren’t extravagant luxuries; they’re becoming expected upgrades.
- Facebook Data: There’s a wealth of information about consumers available via Facebook and other companies. It’s called “big data.” Facebook ads can retrieve this data and categorize by “likely to move” and “For Sale by Owner.” Harness demographic data, age, employment, marital and family status, and finely target your marketing efforts to find your ideal client.
- Open Floor Plans: Big open spaces connecting the living room and kitchen facilitate entertaining and interaction, making them bright and welcoming. For increased value, real estate professionals often recommend knocking down a wall to open up a space instead of walling it off to create smaller rooms.
- Fast Markets: With fewer homes and a median inventory age of 68 days, agents need to stay on their toes and buyers will need to be ready to act. Make sure your buyer clients are pre-approved, well prepared, and poised to make their best offer first.
Look for opportunities to leverage these trends to boost your business. For example, do a little research on millennial behavior and lifestyles and update your marketing materials. Employ social media and YouTube for memorable listing presentations and advice blogs. Have a little fun (or a lot of fun) and take your drone out for a spin over that new property for some must-see listing photos.
The real estate industry involves a lot of interesting topics, factors, trends, and tools. And it’s so easy and convenient to learn more. Come and visit our real estate training courses online here and become a licensed real estate agent!