The US real estate industry is currently witnessing quite a lot of transformation. From sky-high home prices to shortage of labor force and an increase in technology adoption. 2018 was a year of ups and downs.
However, as we are sailing through 2019, a lot of eyebrows may be raised will dominate the real estate industry in the New Year Will the same trends continue, or there will be a fresh wave of change? Here is a short brief on what trends real estate businesses can expect in 2019 by the Realtors in Winston Salem NC.
Millennial to Top the Buyers List
- A large portion of the millennial will turn 29 in 2019, increasing demand for first home purchase.
- According to reports, 2020 will be the peak millennial home-buying year.
- Millennia’s will account for 45% of mortgages in comparison to 37% of Gen Xers and 17% of Boomers.
Mortgage Rate to Increase
- According to the predictions, the 30-year average fixed mortgage rate is expected to reach 5.8 percent by 2019 end.
- Other experts also forecast even more rise in mortgage rate this year.
Home Buying Capacity to Fall
- With rates rising and limited income, buying capacity to reduce
- Less monthly payment is likely to take buying power down by 10%
Technological innovation to bring disruption
- Technology to change the way buyers, sellers, and investors interact.
- iBuying, blockchain, artificial intelligence, and machine learning to dominate the industry.
Institutional Investors to Get Advantage
- Compared to individual investor’s institutional investors are well-funded.
- Interest rate to increase affecting individual investors capacity to buy and hold properly
Rent Prices to Shoot High
- As buying capacity reduces, demand for renting will increase and hike rent rate.
- However, with steady investment in construction of apartment, rent growth will not shoot too far.
Commercial Property Managers to Welcome Change
- Competition among traditional commercial landlords likely to get more intense.
- Increased efforts and investment will be made to attract smart home, service- economy firms and downtown renters.
- Landlords to invest in providing tenants with cutting-edge amenities like Gym, Movie theatre, Don run, co-working space.
- Surety bonds to replace security deposits while renting commercial property.
Free Delivery to Cost High
- Next-day delivery strategy to load to an increase in demand for warehouse space.
- Speedy delivery to cause congestion and pollution across major US cities.
- Businesses may have to bear an estimated congestion cost of $240 billion in the next five years.
- Renting Cost for logistics to increase impaction overall budget.
Use of Artificial Intelligence (AI) to increase
- Adoption and implementation of AI in real estate operations to increase.
- Tech startups to invest more in AI technology
- Integrated AI and Machine learning to help in building design, organization, and development
Hotel Sector to Witness Record-breaking Occupancy
- CBRE Hotels America Research forecasts record-breaking hotel occupancy in 2019.
- The level of occupancy in the hotel sector to go up by 55.2%
Follow all these above mentioned trends that Winston Salem realtors, analysts, and economists expect to come in the 2019 US real estate industry.