As 2018 draws to a close, it’s worthwhile to consider how quickly the market can change. This can’t always be predicted; however a savvy investor or professional can always mitigate risk by keeping a close eye on the market and noticing trends. Here are a few worth considering as the year ends.
A popular tech buzzword, “big data” describes a large volume of data that’s collected and used to predict patterns, trends and even human behavior. Companies like Netflix and Facebook rely on it. It’s been in the news a lot lately, and it’s a concept that has the potential to innovate many markets, including real estate. An article in FT Journal notes that one of the ways it may impact the market is in regards to software that would allow those hosting a property listing to determine when a lead might buy or sell a property, test potential prices of property or land, and even predict how many people may stop by an open house!
Rising prices and the power of millennials
Members of the Forbes Real Estate Council predict that while home prices may begin to normalize in some markets, such as NYC, don’t expect the prices to decline. Despite high costs, millennials are also expected to continue to be a factor, even though there has been a lot of news lately relating to the fact that they either don’t want to buy a house or can’t afford it. Despite this, homeownership for the group is still on the rise.
Imagine taking a tour of a potential property without ever leaving your home or office. While such tours were once primitive, better VR technology has made the virtual tour a powerhouse in the industry, especially for foreign buyers. Additionally, new Augmented Reality technology allows users to implement images of objects into real life! Imagine doing a comprehensive virtual redecoration of your home! The potential for home buyers and realtors is limitless.
Another technology that’s here to stay is blockchain. The Globe & Mail describes it as an online ledger. Connect to the network and get immediate access to a huge repository of information, including records of transactions, historical data and more. Advocates say this could be used to greatly reduce fraud, although privacy concerns remain.