Since a lot is happening worldwide, you might wonder how economic conditions will impact the real estate industry. Real estate trends are changing unpredictably. Will the prices of properties shoot up? How will the current situation change the dynamics of the real estate business? Is it wise at this time to invest in real estate properties?
To answer all these questions, you must look at the new real estate trends that have popped up in 2023.
Online Real Estate Services Are Expanding
Online real estate services are constantly expanding. You might have also heard of some most renowned ones, like Zillow. With improved technology, you can now list your house or find a new one online easily through multiple sites with reasonable offers. You can also hire these online services to let them find or sell the house for you. So, it helps cut down the hassle for the buyer and seller.
Here are a few ways mentioned to leverage online services in your real estate business.
You pay a hefty commission to your traditional real estate agent. Now, people are using virtual agents by investing only a tiny fraction of a traditional agent’s cost. Consider it a middleman or a solution to get assistance in selling or buying a house without hiring a real estate agent.
However, when selling a house, don’t forget that your house is your biggest asset. You would want to get a fair amount for your house. So, be cautious if you are planning to use a virtual agent to get help with the selling process, and make sure that they are well-versed with the rules of real estate or else you’ll end up wasting your investment (and home!) for nothing.
Third-party buyers purchase the house from you and resell it to someone else at a higher price. They are the ones who also deal with the repairs, inspections, house staging, etc. These people take a commission for selling your house as an agent does; however, it is not always the case.
Companies may also ask you to pay an additional service fee which, in most cases, you’ll end up not getting a fair price for your house. On the other hand, when you hire agents, they know better about the real estate market in your area, and they can find the best deals to ensure you sell your house at a fair price.
Now, you can get the closings done online through digital apps. It helps streamline the process by managing the documentation and reducing the hassle of handling all the paperwork. So, you can easily buy or sell a property conveniently without even getting out of your bed or PJs. You will see a lot of these apps launching in 2023.
However, always be mindful of your decisions. Following every new trend in the industry might not deem fruitful. Instead, use your best judgment, knowledge, and available information. Make a proper budget plan, and hire a real estate agent to get the best deal or return on your investment.
Home Inventory Is Low But Improving
There are not enough houses available to sell according to the demand. The situation got worse due to the pandemic. But now, the trend is changing; the inventory is low but has been growing since May 2022.
What Should Buyers Do With Low Inventory?
As a buyer, when you start hunting for a new house, stay on your toes to grab the best option you see. The best houses won’t last for longer in the market. So, try to make a quick and calculated decision. You will have to sacrifice some of your desires or wants. Focus on what you must have instead of what you want to have. If the neighbourhood is good, find the least expensive option and plan for upgrading it over time.
Moreover, don’t confine your options to a specific area or neighborhood. You will be surprised to find some fantastic offers in the least expected location. Hire a credible agent, and let him get the best deal that suits your lifestyle and budget.
What Should Sellers Do With Low Inventory?
If you are a seller, you won’t face much competition in the market when the inventory is low. You can expect a lot of offers if you have the best deal for potential buyers. Even if your house is not that appealing, you might still get offers but not as much as you would have in the last few years because the higher mortgage rates have thrown a lot of buyers out of the market.
Also, ensure you know where you will move to after selling your house. Finding a new home will be pretty challenging in such circumstances.
Home Values Are Increasing Year Over Year
Annual home values are rising; however, the growth is relatively slow. In mid-2022, home values’ growth rate was below average. It shows that the transition will be slower in 2023. Since the demand for houses is higher, the prices won’t drop instantly. Instead, the prices will start sinking gradually but will still be more expensive than before.
Now, if you’re a seller, this trend must have given you some relief. You will get more profit by selling a house you can use to buy a new one. Hire an agent and let him find the best deal for you. Most of all, stay calm if you want to have the upper hand while negotiating.
On the other hand, if you are a buyer, you can still do much to survive in this critical situation. First, you should be aware of your budget limitations rather than base your decisions on the pressure or competition you see in the market while buying a house. Wait for the right deal that fits your budget plan, lifestyle, and requirements.
Risky Buying Options Are More Accessible
You will find many risky buying options this year, but don’t fall for them unless you are ready to face the consequences.
Down Payment Loans
It’s risky to take a personal loan to get a down payment. With this option, you’re going to borrow the entire value of a house from two different companies, which means you’ll have to pay two different interest rates, so double the trouble! In turn, you will be spending so much money, which will keep you from achieving other financial goals you might have.
Rent-to-own is another risky option that’s starting to become a trend. People fall for it quickly because it looks appealing to them. But the reality is different as it requires you to pay the extra rent for a house you will eventually have to buy. Since rent prices are constantly increasing, you’re going to end up paying a massive amount. And if you drop the plan of purchasing the house, you won’t get the extra payments back. It’s such a gigantic waste of money!
Also, you will be responsible for all the repairs, maintenance, etc. required during your stay. Needless to say, it’s not the ideal setting to purchase a house. If you can’t get one right now, don’t opt for such non-feasible options.