2018 Trends that are Impacting the Industry

With a new year comes a new set of challenges and opportunities for the real estate market.

Like any industry, the real estate industry continues to grow and evolve with each passing year. With this evolution comes a series of new challenges and opportunities for realtors. Factors that will impact the industry in 2018 include lack of home inventory, an over-abundance of resources and the growing trend of renting over purchasing homes.

ESTATENVY connected with Melanie Stone, realtor at Coldwell Banker, to get the scoop on how these modern trends will impact the realtors and consumers alike.

Industry Challenges

One challenge that the industry will need to overcome is finding a way to break through digital clutter in order to reach consumers. Stone noted the current abundance of apps, discount brokers and online information continues to build with each passing year. In order to stand out in this busy sector, it is important to learn what information to present and in what way to do so.

Today's best agents have to adapt to the changing marketplace by becoming more education-focused and providing resources the way that buyers and sellers want to receive them,” said Stone. “This includes email blasts, social media posts and short texts.”

Another challenge that the industry must overcome is the move towards renting over buying properties. Stone noted that this is in part due to the fact that college students are facing significant debt upon graduation. Before committing to a purchase as large as homeownership, they must dig themselves out of this financial obligation.

The industry has adapted by increasing the availability of rental space. Stone shared, “Chicago continues to see developers building large luxury rental buildings. These buildings recover their construction costs much more quickly than a new condo high rise. It's a combination of reduced buyer demand and reduced supply of homes for purchase.”

Industry Opportunities

Despite these challenges, the industry also offers a range of opportunities for those who know where to look. With all of the information available on the Internet, realtors and consumers alike have access to a vast source of market data that can help with their search.

This creates a more educated consumer but also one that will need to rely on a professional realtor to help them decipher what information is legitimate, and to interpret what that information means for their specific situation. As we know, just because something is on the internet doesn't make it credible,” said Stone.

Another opportunity lies with the decline in home inventory. This trend is causing potential buyers to actively seek out reputable and respected realtors when looking for their dream home. These agents are able to provide listings that are not available to the public. In an industry where inventory moves fast, this leg up can be essential to securing the property.

According to Stone, a well-networked realtor can also bring value to the table by finding a buyer for a client without ever formally listing the home. This can provide the homeowner with a more tailored experience based on their needs and desires.