Discussing recent trends in home prices is nothing more than the changing phase of real estate. The more the real estate market changes, the more it affects the price of houses. The real estate sector has experienced an explosion in recent days. Let’s say it’s residential real estate, commercial real estate, retail real estate, industrial real estate, or even investment, reports and gossip are rampant about the market crash. But along with these news, there is also a simultaneous awareness that the real estate market is performing moderately in its development and will rebound in the second half of the year 2007. This phenomenon is very evident through various financial indicators such as stable rates, falling dollar , change in demographic trends, expansion of the stock market.
The immigrant count is rising rapidly in the United States of America these days. It has been estimated that the increase in immigrants will reach around twelve million people in 2010, while in 1990 it was only nine million. Undoubtedly, this phenomenon plays an important role in the real estate market. The increase in immigrants is increasing the demand for home ownership at a very high rate and it is also estimated (according to a recent Harvard survey) that these immigrants will account for approximately thirty percent of the market share by 2010. The most important part of this prediction would be purchasing power. An estimated $1.5 trillion in currency will come under this combined purchasing power. It should also be noted that they may front up to around 55% – 60% of first time homebuyers.
It has also been observed that first time homebuyers are no longer unaware of the market position when purchasing their home. The latest trend is witnessing a change in attitude as they become increasingly careful with their purchase evaluations. To keep up, real estate agents and brokers need to take more of a financial planner approach. The traditional real estate attitude will stop working and the appeal will undoubtedly be more universal, institutional and professional. The complete knowledge and condensed answer in time will help them to survive in the market.
Technology also has a significant role to play in the changing trends in real estate in the United States. It is evident that the configuration of the market has been constantly changing with the advent of the Internet. People are getting help from various newly developed technologies and their applications and getting free flowing information about buying and selling property. This is changing the real estate market from its traditional process. Today, people can surf the web looking for their home while meeting their individual needs and saving the broker’s time and cost. About 77% of US homebuyers surf the web to buy their dream home. Real estate agents have also joined this trend by providing free information online on their websites.
A change in the trend of real estate advertising has also been noticed. Due to extensive prior knowledge, today’s consumers have become less tolerant and expect real estate agents to provide them with more than usual. If consumers are not satisfied, they will surely move on to other agents.
Another important factor is the condition of homeowners in certain regions. Socioeconomic and more natural factors contribute to this pressure. Even though most of the United States of America is seeing a rise in real estate, people in New Orleans, Louisiana, and Mississippi are under pressure to sell their home. The price of your house is drastically reduced due to the aftermath of Hurricane Katrina. Therefore, the value of property insurance has risen high in these places.
