Real Estate Trends:
- Home buyers are making smaller down payments. In the past, buyers Saving up for a larger down payment used to be the norm but now, many buyers are opting for smaller down payments to keep their cash for other expenses like travel and eating out.
- Overall there is a decrease in the number of days homes are on the market. In 2018, the average home was on the market for 94 days. This is a decrease from previous years and shows that homes are selling faster than ever before. Taking into consideration the last 2 months of 2022.
- The rise of iBuyers. iBuyers are companies that use technology to make quick offers on homes sight unseen. These companies then make necessary repairs and list the homes for sale. While this may be a convenient option for some sellers, it’s important to remember that you will likely sell your home for less if you go this route.
- More people are relocating to secondary markets. Secondary markets are cities that are seeing an influx of new residents but aren’t as well-known or populated as primary markets like New York City or Los Angeles. This is likely due to the rise in remote work opportunities and the desire for a more affordable cost of living.
- There is an increase in the construction of single-family rental homes. This is being driven by investors who see single-family rentals as a more stable investment than other options like stocks or bonds.
- We’re seeing a decrease in Transaction costs. Transaction costs are any fees associated with buying or selling a home and can include things like commissions, loan origination fees, and title insurance.
- The popularity of subscription models. A few startups are offering subscription-based models that allow people to try out different neighborhoods before they buy a home. This could be a great option for people who want to move to a new city but don’t want to commit to buying a home right away.
- ‘Build-to-rent’ developments are on the rise. These are multifamily developments that are built specifically for renters instead of buyers. We’re seeing an increase in these types of developments because they offer stability and predictability for investors.
- ‘For sale by owner’ (FSBO) properties are becoming more popular. In 2019, 7 % of all homes sold were FSBO, which is up from 6% in 2018. This trend likely has something to do with the increasing accessibility of information online and the rise of resources like Zillow Offers, which makes it easier than ever for homeowners to sell their homes without using a real estate agent.
- Downsizing is becoming more popular among older adults. As baby boomers age, we’re seeing more and more people selling their large-family homes in favor of smaller, easier-to-maintain properties. Downsizing can free up some extra cash that can be used for things like travel or retirement savings. Plus, it can help simplify your life by getting rid of unnecessary clutter.
Conclusion: Keeping tabs on current real estate trends can help you make informed decisions about your home – whether you’re buying, selling, or simply renovating. By understanding what’s popular (and what’s not) you can save money, time, and energy in all your real estate endeavors!
