5 Real Estate Trends That Your Agency Should Pay Attention to in 2022
One of the biggest factors behind the success of any real estate brokerage is the ability to pick-up on and interpret trends. Of course, it’s impossible to predict what will happen exactly, but careful data analysis can lead to reasonable assumptions. This can then help with proper planning and resource allocation, ultimately resulting in productivity and efficiency.
That said, here are five real estate trends that are expected to shape the real estate industry in 2022:
Widespread Tech Adoption
Due to the COVID-19 pandemic, companies all over the world have had to make changes in the way they operate. In particular, working from home became the norm; as such, video conferencing apps became the tech tool of choice for millions when it comes to conducting meetings and interviews.
In real estate, video conferencing is just the tip of the tech adoption iceberg. For example, many agents turned to 3D home tours using virtual and augmented reality to showcase properties to their clients. Some even used drone cameras to capture live video.
Meanwhile, for agent recruitment, CRMs continue to be invaluable tools. With the right product, like Brokerkit agent recruiting, you can integrate various functions and access multiple features to make the entire recruitment process much more seamless.
The bottom line? More real estate brokerages should invest in technology, if they haven’t yet. Both clients and real estate professionals have seen the benefits of tech in the industry, and they will definitely expect these to be used more moving forward.
Remote Working Will Continue
As previously mentioned, COVID-19 made remote working the norm. As companies transitioned to a work-from-home arrangement in order to help curb the spread of the virus, employees came to appreciate the convenience of such a set-up. Even better was that productivity remained about the same when compared to traditional in-office work.
Indeed, recent surveys revealed that a majority of professionals would prefer working from home for the long-term (whether full-time or part-time). In real estate, this is advantageous for suburban and rural growth. More people would be willing to move to homes further away from city centers if they only have to commute to work once or twice a week. Thus, brokerages and agents should consider putting more effort into marketing their suburban and rural properties.
Even before the COVID-19 pandemic, most people already favor their smartphones over their computers for certain transactions. These include online shopping, banking, and even responding to messages.
For real estate agents who are always on the go, a powerful yet portable device like the smartphone is definitely a huge boon. Even better is that thanks to technology, the smartphone has become even more beneficial for real estate work. A good example here would be apps that make use of the camera to scan documents, as well as e-signature services.
Smartphones can also help facilitate remote property viewing. Again, the pandemic has pushed technologies like virtual and augmented reality to the forefront. Through appropriate apps and programs, real estate agents can help their clients “visit” homes and buildings without having to be physically present. This can be especially favorable for younger clients, who are likely digital natives and thus prefer digital solutions.
A Younger Buying Market
Speaking of younger clients, millennials are expected to become the majority of homebuyers in 2022 and beyond. Again, as digital natives, they’re looking for digital solutions for their concerns: looking for houses, viewing properties, consulting with agents, down to signing their ownership documents.
Thus, real estate brokerages should be ready to adapt both in terms of technology and attitude. Keep in mind that a lot of millennials are non-traditional, in the sense that a home for them is not a place to settle down. Rather, for the younger generation, a home is something that can become their base in their journey towards success. They may retire there, eventually, but that’s not the ultimate goal.
In short, brokerages must be prepared for a more discerning market. Millennials (and soon, Gen Z-ers) can be more particular about what they want, so real estate agents must be properly equipped to address this client’s base’s unique needs.
In 2021, home prices will increase by 23%. The upward trend is expected to continue in 2022 and beyond, although the increase might not be as big. Still, despite the rising costs, home sales are expected to keep up. The demand is likely influenced by COVID-19 measures such as physical distancing, which can be easier to do for those who have their own homes.
No matter the specifics, however, there’s no escaping the fact that there will be higher prices and more buyers in 2022. Brokerages would do well to prepare for this, in order to manage their clientele more efficiently.
As the saying goes, the only thing that is constant is change. These trends are by no means exact, and can even change halfway through the year. It’s only by keeping an eye on the ever-changing real estate landscape can brokerages and agents consistently fulfill their jobs with ease and aplomb.