This year’s real estate market has been a wild ride. Here’s what to expect going forward into 2021 and beyond.
It’s been no secret that the recent housing market has been strange: high housing prices, low rental rates, and people running away from the cities in droves. Significant changes in our technology and lifestyles mean we’re looking at real estate in a new light. Read on to see what you can expect in the coming months as we continue to recover from the mess that was the previous year.
Home Prices Continue to Climb
We’ve seen housing prices skyrocket in recent months, while rental rates fell in certain areas. And experts say there are no signs of that stopping soon. There are several factors playing into this.
First, demand is as high as ever. You can thank mortgage interest rates in part for staying on the low side. But this is also an effect of more millennials entering the housing market and more workers adjusting to a long-term work from home lifestyle. Add the falling unemployment rate as more people return to the workforce and you’ve got a lot of people looking for homes in a market with low inventory.
For those people who are selling a home, this can be a dream come true. Homes are selling faster than ever at record prices. It’s not so much fun to buy a home in this extremely competitive market. Low affordability means many of these potential buyers will be priced out of buying their dream homes, at least for now.
There may be some relief on the horizon as home construction continues to rise, but this will take time to develop. Strong remodeling demand could speak to more intent to sell, but it could also be another symptom of people stuck at home.
Moving Away From the Metropolis
When city centers shut down and people began indefinite stretches of working from home, living in the inner city lost much of its appeal. With less to do and no commute, more people considered leaving in favor of such greener pastures as 18-hour cities or even suburbia. These places offer comparable amenities to the bigger cities but at a slower pace and higher potential for growth.
When you look at a current list of the fastest-growing cities, you won’t see the typical sprawling cities. Raleigh/Durham, Austin, and Nashville top this list. It would appear the southern US is full of areas for potential growth. The savvy investor should look to these places for new markets, but act quickly!
Renters on the Rise
As more people are priced out of homeownership, expect more of a shift to multi-family housing and rentals, or other alternative housing such as mobile homes.
Mobile homes may be getting their day in the limelight soon, as they present an affordable alternative to buying a single-family home. With a mobile home, you still own the property but rent a plot of land at a mobile home park. The adjustment of zoning laws in many parts of the country means few, if any, new mobile home parks are cropping up. Low supply and high affordability mean this type of real estate investment can heat up fast. If you’re looking for a new real estate market for investment, consider a mobile home park in the area. They’re typically lower maintenance than multi-family alternatives.
But don’t discount the humble apartment building. Multi-family homes will also have their day as families need to move somewhere. And those falling rent prices may not stay low for long. Now could be a good time to invest in either a mobile home park or an apartment building and look for potential improvements.
Embracing Technology
Automation is a hot topic in today’s business discussions, threatening to replace much or (perhaps, eventually) all of the workforces. Between new advances on the automation front and the work from home boom, businesses are embracing technology as part of their workflows. The same is true for real estate.
Automation isn’t always about robots. New software makes use of concepts like robotic process automation to streamline routine tasks or artificial intelligence for help in decision making. A tech-savvy real estate agent can use both of these effectively to up productivity and make better-informed decisions. Use robotic process automation to cut down on gathering contact information. Leverage artificial intelligence to process property data and find properties ready to sell before they hit the market. Both of these tasks are easier than you think — just read on to see how it’s done.
About ProspectNow
ProspectNow is a hybrid property database and customer relationship management tool for anyone in the real estate business. Find data on any property in any market nationwide, whether residential or commercial. Instantly pull up the owner’s contact information, and even put a name to a property that’s owned by an LLC. Then use the included tools to contact these owners in an instant.
The platform includes a likely seller algorithm powered by unique data analytics and machine learning. Use this AI tool to identify properties in your area likely to sell in the next 12 months before they hit the market. It can be your secret weapon in this competitive market, giving you the chance to strike at an off-market property before other agents know it exists.
To see how powerful this tool can be, ProspectNow includes an ROI calculator on the website. Enter your location and current sales metrics and it will tell you how many likely sellers it spots in your area now. It’ll also show you a list of properties it correctly predicted would sell.
Once you found a property, use ProspectNow’s CRM tools to call the owner. Even draft an email or send a postcard. There are included templates to help you craft the perfect message. Finally, you can create your own direct ad campaign to target owners online — again, using AI techniques to build an omnichannel ad experience.
Are you ready to close more deals and make more money? ProspectNow’s tools help you stay ahead in this unprecedented housing market. Sign up for a 3-day free trial of our platform and see what a difference ProspectNow can do for you.