Real Estate and Technology: What the Future Holds

Our Current State

The past decade has seen many changes in the real estate world. From the crash, to the rebuild and rejuvenation of the market. As we all saw in 2008, the state of the housing market can be unpredictable and can change in and instant. Luckily, there has been nothing as drastic as the housing market crash in 10 years. Also, the market has been on a consistent rise as of recent years. Real Estate technology has a big impact on it moving forward.

2018 has seen an interesting shift in the housing market, however. Currently, the market is considered frozen, as there is not as much mobility. Not as many houses are being listed and not as many buyers are actively searching. This causes a stagnant but still relatively stable market environment.

Ups and Downs In Real Estate

There has been a decrease in “move-up” buyers, ones that are looking to upgrade to a bigger and/or better home. The biggest difference has been noticed in the $500,000-$1,000,000 pricing range. Move-up buyers are looking for an increase in quality of living space. That being said, prices have increased drastically over the past few years. Because of this, buyers are finding that it is more beneficial to remodel their current home.  Choosing to build an addition, as opposed to buying a new house altogether. In addition, interest rates have gone up on average, making staying in a current home the smarter, more economical decision overall.

Looking Forward

It is hard to predict how this frozen market will be in the future, as time will only tell how the housing market and economy will interact, however, there are speculations on how the real estate market might be changing as a whole. In the next few years, the housing market will likely have another factor weighing in on its success: technology. Real estate, up until now, has remained fairly immune to technology, though that is changing rapidly.

There has already been a shift in the home search process, as search engines are being used to see what houses are available currently, and listings can be updated in real time. This keeps buyers informed on real estate trends, home availability, and more. There is now a consolidated space to provide all necessary information, and it makes it easier for real estate companies to increase exposure of properties as well as answer common questions from buyers.

Online Real Estate Technology

Another way that technology will be interacting with the housing market of the future is via online sales and transactions. Operating on an online platform puts the control more in the hands of the buyer and relies less on a middleman, though a negotiator still plays a key role in the entire process. Online platforms combine search and buying processes, so buyers can place offers right through the platform, with the assistance of an agent. Now, buyers would not just be left to fend for themselves, however, they would still have agent representation, and agents could still provide guidance in rebates and other money-saving techniques. Utilizing online platforms for transactions could potentially streamline the entire process and boost the stagnant mobility of our current housing market.

As stated before, there really is no guaranteed way to predict the future of the housing market, however, taking into consideration the current state of the market, and the way that technology is moving, it would be no surprise to see the two combine forces and once again rejuvenate the real estate world. That’s why it’s important to work with the experts at Kyle Arbuckle Group for all of your real estate needs. Call us today at (702) 660-0988