[vc_row][vc_column width=”2/3″][vc_column_text]The Residential Real Estate sector is far beyond just building made of brick and mortar; in fact it is an enabler of our well-being and sustenance. This hugely demanded sector is likely to perform differently from what we have experienced previously. It has been going through a speedy evolution in the previous few years. Crucial government initiatives have offered greater transparency as well as introduced effortlessness in this sector.
Although the year 2020 started on a positive note, the COVID-19 outbreak and resultant worldwide lock-downs coupled with horribly disturbed supply chains dashed all optimisms temporarily. At this time it seems as the residential Real Estate sector has gone through a roller coaster ride and heavy winds of transformation are being seen already from the customer as well as developer point of view. The COVID-19 pandemic has accelerated the industry, conveying a focus on safety, social integrity, and wellness amid an environment of economic uncertainty.[/vc_column_text][vc_column_text]
[/vc_column_text][vc_column_text]Here are a few of the biggest Emerging Residential Real Estate trends as well as technology that are most likely to prevail in the year 2021:
1. Rising Costs of Home
In the previous years, it is found that home prices have been rapidly increasing and in the year 2021 this trend is continuing
Here are a few median home prices in previous years:
- 1980: 1Crore
- 2000: 1.3 Crore
- 2019: 2.2 Crore
- Today: Nearly 2.3 Crore
From the data, we can see that there is an increment in median home prices in the last 40 years.
Although the median home price is highest in the current period, the rate of this increment is very slow (nearly 3%). But as per the studies, it is found that in the year 2021, the growth rate of home prices will reach 4%, in spite of a huge increment like in the last few years.
2. Low Housing Inventory
Lagging housing inventory is one of the important reasons behind the escalation of house prices. Due to COVID-19 pandemic, there is a huge demand of the residential Real Estate market than supply.
Inventory can be predicted a lot in the year 2021. This will increase the home prices as well as bidding wars.[/vc_column_text][vc_column_text]
3. Low Mortgage Rates
In 2020, we have seen that the rates of mortgages hit a record low. In 2020 January, the mortgage rate of average 30-year was nearly 3.7%. Because of the COVID-19 outbreak, the Federal Reserve dropped the federal funds rate, which affected other rates also.
In 2020 October, in California, the average 30-year mortgage rate hit 2.875%, which was one of the lowest mortgage rates in history. Along with mortgage rates, refinance rates have been low as well all over the country. According to economists, all these rates will continue to stay like that till the recoveries of the economy, which is still uncertain. That’s why; we will see the same low mortgage rates in 2021 also.
4. Millennial Home Buyers are the Majority
Share of Buyers and Sellers by Generation
In the last couple of years, it has been realized that the millennials have been the largest group of home buyers. And in the year 2021, it seems like this group is becoming one of the major groups.
As millennials are starting to search for their first home, tech-savvy listings along with location are crucial for them. Many millennials are shifting out of cities and moving into the suburbs. Now suburbs are becoming hotspots for millennials because of lower home prices and safe location.
Millennials are very tech-savvy, which means the residential Real Estate sector should be very cautious about their online presence as more buyers search for their homes through the internet.
5. Virtual Reality
One of the most crucial and largest Real Estate technology trends is virtual reality (VR). VR exactly means a computer-generated simulation. Within the process of simulation, users are able to communicate as well as explore in an artificial 3D environment.
Because of COVID-19, VR became very popular, when home-tours were not permitted. Since then, the effortlessness and convenience of VR usage in residential Real Estate have made it more famous and its use will continue to grow in the year 2021
Here are some of the advantages of using VR in the real-estate market:
- With a small investment, VR is a way for Real Estate agents to market properties
- It helps sellers as well as agents to generate superb 3D home tours
- It also helps buyers to share in different tours in a short span of time without physically visiting them
Agents, builders, and brokers use VR to showcase various ideas for some specific areas that customers can decorate by themselves[/vc_column_text][vc_column_text]
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6. Smartphone Apps
Because of the constantly growing number of smartphone users, now enterprises are concentrating on building their own smartphone applications to connect directly with customers
Smartphone apps:
- Help customers to access important information about properties at their preferable time
- Have eased the process of interaction between the residential Real Estate agency and customers
- Have eased several operations, saved huge time, as well as resources
Summing Up
Developers are very much optimistic and agree unanimously on the fact that Real Estate will bounce back and reform in 2021. Conductive protocols, technology-based innovations, and economic perspectives are most likely to play important roles in this residential Real Estate sector. So, even though the year 2020 was very much challenging, this sector has the capability to grow and to support the complete advancement in the economy, it is poised to be one of the key drivers.[/vc_column_text][/vc_column][vc_column width=”1/3″][vc_column_text el_class=”post-contact-form”][fc id=’2′ align=’center’][/fc][/vc_column_text][/vc_column][/vc_row]