|
As our economy shifts to a ‘new normal’, it is time to sense what can potentially be shaping home buying trends in the near future. While there is still plenty of white space in real estate market directions, some known facts are already happening and start forming the ground. 1. Working from home is gaining its market share 2. Birth rates are likely to be higher by December 2020 3. Surge in divorces is anticipated in wake of quarantine 4. Generation Z is entering the workforce Let’s take a closer look. Working from home Previously a freedom-tinted idea, ‘zooming from home’ became a new reality. Since we don’t really know when we will all go back to the office forgetting masks ever happened, we have to get comfortable with the ‘new normal’ operations. While it is true that not every business is suitable to operate remotely and not every human is excited to work from home, it is a common fact that a successful business model needs to minimize operation costs as much as possible to maximize the profit. The key phrase here is ‘as much as possible’. Since now we perfectly tested working from home concept, more businesses will move it from a ‘risky’ to a ‘usual’ practice. This becomes even a bigger challenge in 2020 as many companies will permanently close and the rest will go through mergers, acquisitions, and restructuring. Having online business model as a dominant one is another push towards remote operations. With more tech startups emerging every day, online collaboration is getting more sophisticated. Hard not to mention the convenience fact allowing to run the same business from different points on the planet. Bottom line: more and more companies will be shifting to remote operations How it shapes real estate buying trend
Coronials or baby Zoomers?! Historical events like wars, recessions and social movements have defined past generations. Coronavirus pandemic will likely become a dividing line between Gen Alpha and a new one. The question is – will there be a baby boom in December 2020? Research shows that birth increases are common after disasters, particularly those in which citizens are ordered to shelter in place. A paper published in 2008 found that hurricanes and tropical storms are indeed associated with increased birth rates after nine months. Data compiled by Lyman Stone, a researcher at the Institute for Family Studies suggests that epidemics produce a similar pattern. The fact against a ‘baby boom’ is uncertainty the economy is facing. Unemployment rates are on the rise and no one knows the exact date this pandemic ends. While there is no assurance to predict trends in population growth, a blip in December 2020 birth rate is very likely to occur. How this affects Real Estate
Divorces 2020  Page Six reported divorce filings are rising with a 50% rise in inquiries since the lockdown. Financial matters and time spent in quarantine together during the epidemic are some of the factors behind the decision to split. Separation of joint assets & real estate Divorces usually attribute to selling the biggest joint asset and making it quickly and efficiently. The fact also contributing to a sale is a new tax law that no longer allows to fully deduct real estate taxes making it costly to live in the home while separated.
Generation Z  Generation Z is now 10-25 years old and they start entering the workforce. Who they are and what to expect?
Born digital, growing up on foundations of diversity and adapting lessons from great recession, they are very different from Millennials. According to studies, Gen Z is more entrepreneurial and individualistic.
Each generation shapes the world according to their perception of ‘comfort’, ‘normal’, and ‘fun’. There will be more significant changes in the way we work, shop, study, and create. There is a technological base already and it is only a matter of time when new projects that challenge our status quo will emerge. Z way of Real Estate Yes, there will be a Z way. Buying and selling real estate is already happening online. There are apps, platforms, and new algorithms – all of them enhance consumer experiences and create new challenges. Now each seller is concerned how to stand out in a digital world while getting the highest exposure within target audience. Each buyer is looking for a ‘deal’ and unique properties that will go up in value. Both sides need numbers, statistics, trends that are updated as of today. Making real estate deals is like trading stocks – you can’t make decisions based on yesterday’s information. The role of a real estate agent has changed significantly. The agent’s value now is how to filter information online and get to the right point before the competitor does. Will future software open more light to buying and selling without using agents? Of course. While there will be more tools for that, there will also be more ‘things’ to watch for and master to make a successful deal. It is like representing yourself in the court without an attorney – free and available but eventually may cost more. Comments are closed.
|