It’s hard to believe that a new year is upon us already. 2018 proved to be an interesting year in the real estate market – both here in Florida and around the nation. Whether you are looking to buy or sell this year, here are three trends to keep your eyes open for:
For several years now, the real estate market in South Florida has been tight on inventory. While homes do hit the market, there just hasn’t been enough to withstand the demand. While the industry hit a record national low inventory level last winter, there is an expected growth of 7% for 2019 – and yes, that includes Florida, especially here in Palm Beach and Martin Counties. Sellers will have to consider competition more than they have and it will be more important than ever to have a real estate professional like myself with the most advanced marketing technologies.
Millennials Dominate Home Buying
It seems like millennials just made their entrance to the scene of real estate and now they account for 45% of mortgages in 2018. Compare that to the baby boomers (17%) and Gen X (37%). While it may be a bit harder to acquire a mortgage in 2019 for first-time home buyers, there are plenty of millennials who are ready to upgrade from their starter homes. In addition, the older generations will enjoy benefits of home equity. The most important thing when dealing with millennials buyers is their awareness of price more than any other. Because of their wanting to maintain a specific lifestyle but still own a home, it’s important for the real estate professionals involved to understand this millennial mindset as I do.
Technology and Artificial Intelligence
As in all other industries, technology and artificial intelligence has been a major disruptor. The technological capabilities available to both home buyers and sellers is beyond anything the industry has ever seen. New platforms and apps are constantly popping up with features that out-do the ones before. Artificial intelligence (AI) programs allow potential buyers to refine offerings and redesign layouts of space within a home. In addition, AI supports safety and security features for homeowners.