Regardless of industry, changes in the real estate market can make a big impact on business. Especially for those in mortgage lending or real estate sales, market trends are important to keep up with. However, since home ownership can be an important indicator of buying behavior, it’s important for all industries to keep an eye on trends. Here are a few current trends in the real estate market and how they might affect business.
More Inventory
So far this year, home buyers have faced limited inventory which has led to high prices. Some experts expect this market trend to reverse. In fact, they expect inventory to increase over the following months leading to more accessible home prices and a looser market.
As inventory increases, more home buyers will need title work, insurance, and the other elements that come with a new home. Even durable goods like furniture and appliances tend to see an uptick when consumers buy homes. Higher inventory is unlikely to happen all at once. Rather, changes in inventory will likely occur on a city by city basis.
Generational Changes
With changes in pensions and other benefits plans, seniors 65 and up are facing a different market than their older counterparts. Although their homeownership rate is close to 80%, many have less traditional retirement savings than others in the generation. In fact, much of their wealth is tied up in their house. Market trends suggest this group will likely grow interested in reverse mortgages or other home equity conversion loans.
Additionally, older members of this group are more likely to pursue home care with family instead of more traditional long-care or retirement facilities. Unfortunately, even with more housing inventory, existing homes in the US aren’t built for multi-generational housing. This market trend may lead to opportunities in construction or other house expansion solutions. Bill sharing and other financial tools might also become more important.
Home Layout
In addition to homes supporting different family make-ups, market trends in home layouts are changing. After a year of working from home, work will look different for many. For some, it means staying remote. For others, it means a hybrid work situation. Regardless, consumers are more interested in home office space.
Since many homes lack a dedicated office, this will be another market trend to keep an eye on. Consumers will be looking for solutions to add office space whether by construction projects or inventive design solutions. In fact, products that can make a space more functional as a part-time work space will likely grow in popularity.
Maintain Flexibility in Changing Markets
When markets change, it’s important for businesses to keep up. The ability to quickly adapt resources and marketing material is key to success. Fortunately, the CardTapp platform helps salespeople maintain a dynamic and valuable resource center for clients. Contact us today to learn more!