Like any industry, real estate is evolving with the help of technology. When shopping for or selling a home, people use social media and visit online real estate websites to establish the area they want to live in as well as their price range. Once done, consumers will then look for a real estate agent. That said, here are the top real estate trends for 2019.
- Virtual reality. Many real estate companies are using virtual reality to provide potential clients a 360° view of the property. It will also give floor plans, so people can see if their furniture will fit in a space as well as for placement. This will help buyers visualize living in the home.
- Using social media. As mentioned above, people will use social media to locate a home to buy (or sell). They will connect with friends and family for help on their home search, including mortgage and real estate agent recommendations.
- Low inventory of homes. There will be a low inventory of affordable homes, except for luxury properties. There will be less than 7% inventory growth this year per realtor.com. This means that there will more competition based on market price. And home prices are going up, which will price-out many buyers.
- Increase in home renovations. Since mortgage interest rates have gone up last year (and will continue to rise), many homeowners decided to renovate instead of sell. According to Nerdwallet, from 2015 to 2017, homeowners spent $449.5 billion on home improvement projects. This trend is expected to continue in 2019.
- Millennials buyers. Millennials will be a driving force in home buying in 2019. This is happening at the same time baby boomers are selling to downsize. Millennials will account for 45% of the mortgages in the coming year.
- E-Commerce warehouses. Now that e-commerce is here to stay, there is a strong need to house all of the goods waiting to be purchased and shipped. This means more warehouses to be built as well as more office space for online retailers (e.g. Amazon).
- Omnichannel marketing. There will more brick-and-mortar stores due in part to online retailers realizing they can increase their market share by selling electronically and physically (e.g buy online and pick up in store). Thus, there will be an increase in retail space with the building of shopping centers and market places (a mix of stores and apartment buildings).
- Homes in varying shapes. Since there has been a downturn in new construction and many buyers cannot afford a single-family home, homes are now available in various shapes and sizes. For example, modular homes, twins and townhomes are affordable solutions for first-time buyers.