The real estate market has been erratic in recent years. It reached a standstill during the COVID-19 outbreak, plummeting to 18% from March to April 2020. While sales began to pick up in June of the same year, incoming political and economic instabilities would soon drag the market back down again.
Keeping on top of housing market trends is critical to developing business strategies in an unpredictable landscape. Fortunately, you can hire a real estate virtual assistant (VA) to help with the task, letting you focus on core operations.Â
Read on to learn more about emerging real estate trends and how VAs help you manage them effectively.
Factors That Affect the Real Estate Market
Drastic developments in the real estate market could make or break your operations, so it’s crucial to prepare for any changes by examining the following factors.
Interest rates
Interest rates drive real estate value by directly influencing mortgages and financing. Lower rates make properties more affordable, increasing demand and higher property prices. Experts believe interest rates are slowing down this year and nearly peaking, stabilizing mortgage rates below 6%.
Economic growth
A growing economy sustains more jobs with higher wages, boosting consumer spending and driving demand for real estate, thus increasing market prices. On the other hand, economic downturns cause market prices to nosedive, which results in losses from real estate investments.
Supply and demand
Like any other commodity, the interplay between supply and demand impacts real estate pricing. Prices tend to rise with high demand and low supply, and vice versa. The recent pandemic saw a drastic spike in housing prices thanks to increased demand as households spent more time at home and decreased supply as homeowners hesitated to list their properties for sale during a pandemic.
Demographics
With the previous point, market demographics also affect supply and demand in the real estate market. Different genders, races, ages, educational backgrounds, and socioeconomic statuses typically have varying needs that may influence long-term real estate trends.
Government policies
Legislations, policies, and general politics can boost or stunt real estate growth. For instance, the US government introduced the first-time homebuyer’s tax credit to stimulate home sales following the 2008 Great Recession. More recently, it also launched stimulus programs, such as rent deferrals, to provide relief and sustain the real estate market during the pandemic.
5 Global Real Estate and Housing Market Trends You Need to Know About
While the listed factors may be overwhelming to understand and follow, trust that a VA will stay on top of any market development. Here are some pressing real estate trends and ways an assistant can help revamp your business strategies.
1. More millennials are buying homes
According to a 2022 study by the National Association of Realtors, millennials comprise about 43% of home buyers among other generations—a considerable increase from 37% of the previous year.
Leverage demographic information like age groups, genders, and economic backgrounds by tapping real estate VAs. They keep your business posted with demographic trends through market analysis and identify opportunities to boost your overall operations.
2. Digital real estate services are rising
More industries are adopting new technologies to make their operations more seamless, and the real estate sector is no exception here. Online platforms are becoming more popular, along with services like virtual staging and Facebook marketing for real estate.
Managing digital real estate services is tedious and time-consuming, given its fast-paced nature. Delegate the task to a VA and boost your team’s efficiency while keeping costs low.
3. Other purchasing options are becoming more accessible
Homeownership is becoming easier and more accessible with various financing options, such as rent-to-own setups and down payment loans.
You must leverage emerging purchasing options to stay competitive. Take advantage of the latest financing trends and even innovate new ones by hiring comprehensive VA services to manage your sales operations.Â
4. Home prices continue to increase
While real estate prices continue to go up, the pace is significantly slowing down to 2.3% in December 2022, a 1.5% drop from November and 34% from the previous year. However, the industry needs to be on the lookout for any influences that may drastically impact this trajectory.
A real estate VA makes the process more effortless by keeping tabs on home pricing trends and strategizing for future developments.
5. Homeowners are migrating from cities
In the US, the pandemic saw many New Yorkers migrate from urban sprawls to single-family suburban homes, and other city-dwellers around the country followed suit. This movement significantly impacted housing markets in both cities and suburbs, given the hypercompetitive bidding for properties in the latter.
Tracking geographic movements of supply and demand is vital to identify expansion opportunities, and real estate VAs skilled at market analysis give your research a much-needed boost.
Leverage Real Estate with Virtual Assistants
With the real estate industry’s unpredictable nature, there’s no telling exactly what’s in store for the future. The recent COVID-19 lockdowns and economic and political climates took the world by surprise yet played a role in influencing the market, so staying updated about any other development is essential.
If you want to leverage real estate market trends by partnering with VAs, look no further than Outsource Access! Our industry-leading virtual assistant services, composed of expert real estate VA professionals, can catapult your organization to greater heights.
