At MyState MLS, we do our best to be aware of all things real estate, which is why we know that specific real estate market trends and predictions can quickly become a thing of the past. Others can alter the industry for good. That said, we’ve put together the most popular real estate issues and trends of the year and outlined how they could affect our businesses and ourselves. That said, we also provide the tools agents need to make the most of these changes and benefit from the opportunities they offer. We’re expecting this year to yield a better real estate market and some incredible technology, but regardless, we’re confident that 2024 will not be boring.
Many Will Migrate To Southern States
People are moving between states more often than ever. In particular, one of the most popular real estate trends is the number of people moving into the south (according to third-party sources). The reasons are straightforward, strong job markets (plus the possibility of working remotely) and more space. Affordable housing, and (typically) you’ll experience an accelerated speed of life. Several sources have conducted thorough analyses to confirm the trends we’re seeing from the inside of the real estate industry.
- A record amount (8.2 million) of people moved across states by 2022 (the most recent year of information).
- North Carolina, Texas, Florida, and Georgia are among the five top states for people of all ages to move to.
- Connecticut is one of the states in the top 10 regarding relocation, but it isn’t within the Sun Belt.
- The millennials make up the majority (34 percent of the population, or 2.8 million) of international moves.
- The size of a home in the south has increased in the last five years to 2,608 square feet.
- Transferring between California and South Carolina, residents could save, on average, $430,000 on their homes.
This is a trend in real estate that is expected to last. We will see more and more people of any age relocate to better living conditions. Southern states will continue to draw those looking for greater space for less.
New Builds Will Alleviate Housing Shortages
It’s not a secret that the market for real estate is (and is) facing severe housing shortages. In the year prior, the supply was 2.9 months. According to the National Association of Realtors (NAR), the current inventory is 3.2 months after it fell 11.5 percent from the previous month. The inventory information informs realtors what they’ve learned: there’s no inventory.
However, there’s some good news coming up: The homebuilders of America are helping. One of the most thrilling trends in the real estate industry for 2024 is that homes are getting in the right direction. It is possible to trace the root of the issues we currently face to the housing market crisis of 2008. Then COVID-19 destroyed supply chains, while high-interest rates have made borrowing difficult and costly.
- As per Realtor.com, ” Builders have been catching up, with construction remaining near pre-pandemic highs for single-family and hitting record levels for multi-family.”
- U.S. Census data also show that private-owned dwellings permitted by building permits in December were at an annual rate adjusted for the season of 1,495,000. This is 1.9 percent more than the revised November rate and 6.1 percent higher than the rate for December 2022.
However, we’re seeing some positive changes in the homebuilding figures. The evidence suggests that the construction of single- and multi-family houses is rising, which can help ease the current inventory shortage.
Agents help put many more people into homes and broaden the way to homeownership, which is an important aspect of our role in the community. It’s essential to make clear that there’s a chance of a more healthy real estate market for 2024, and you’re the ideal agent to assist. If builders are creating a new community, you should meet the developers. If you’re patient and have a good network, you may become the preferred agent for the developer’s upcoming designs.
Artificial Intelligence (AI) & Augmented Reality (AR)
Of all the current fundamental estate-related topics among the current issues in real estate, this is among the most important for agents. While the majority of us are new to these fast-changing technologies, we can see there is a chance that AI and AR could positively affect our work. AI is being utilized in a variety of ways. Unsurprisingly, it’s one of the most popular trending areas in the residential real estate sector. We’re witnessing unique AI innovations from creating marketing scripts, listing copy and marketing strategies, leading nurture, and virtual staging. This trend is expected to be among our most popular topics in the world of real estate until 2024.
One of my favorite AR-related applications is part of a more significant real estate industry trend. Imagine a scenario where several parties can view an investment property or significant development projects using AR, evaluate the advantages and disadvantages in real-time, and collectively decide.
AI and AR are real estate trends that will be around for a long time, not just until 2024, but for the rest of our lives. Agents should consider making use of the power of this software technology, and we’ve got the tools, resources, and guidelines to help you get a foothold in the fast-moving waters of AI and AR. We’re confident that the water will be warm!
Utopian Societies
We’re unsure what to make about this new trend in real estate. It’s easy to comprehend the desire to build an environment that is in line with the worldview of one’s choice. Society-based utopias aren’t new. This multifaceted topic poses as many questions as it addresses. As a thinking project, it is fascinating. For a practical application in the real estate industry, it’s pretty complicated.
Fun Fact: Flannery Associates, an organization of Silicon Valley tech moguls, is working to build the Utopian 55,000-acre planned community called East Solano. (The founders are Reid Hoffman, co-founder of LinkedIn, and Rande Powell Jobs. Who created the Emerson Collective and Steve Jobs’ widow.). The dream The goal is to build a community powered by renewable energy and sustained with thousands of new jobs with a solid public transportation system and walkable neighborhoods, lots of green spaces, areas to bike and kayak, along with schools, shops, and other amenities. They’ve quietly bought up vast tracts of land within a peaceful region in California 60 miles away from San Francisco, which has been hotly debated.
While all sounds good and well, the way the whole thing has transpired has led to grave ethical questions:
- Are the people who currently reside in Solano are interested in this?
- Was land bought from people under pressure to sell?
- Once the news about the project spread, could landowners collaborate to increase prices?
Obviously, this isn’t the only attempt at creating a utopian society (there have been numerous attempts in our country’s time). Recently, news broke of a community constructed on the opposite end of the nation, a different part of the cultural and political spectrum.
From the real estate perspective, It’s a complex and intriguing issue. But further splitting our society into communities with political ideologies is terrifying. Although this trend in real estate may continue, as agents, we must keep working to connect communities.
High Home Prices
We’ve been on an erratic trend for three years, and the housing market has become a prevalent issue. Will home prices decline, or will they continue to increase? Will they fall off a high cliff or ever so little if they do fall? The mere discussion of housing prices is a major real-estate market trend!
Our deep analysis of data provides us with an optimistic outlook for 2024. We don’t think that the market will go into a crash anytime very soon. There is the possibility of pricing to soften. As mentioned, new construction is in high demand, easing the inventory burden. Lack of supply has driven prices up and stay there. However, with more homes available and price increases, they could drop. That’s a good thing for buyers.
We aren’t sure there’s going to be any substantial downward trend. This is good news for home sellers. The median housing price is $382,600. According to the NAR notes, this is the 6th month there’s been a year-over-year price rise. This is still lower than the average which we saw in June 2022. That was $413,800. There has been a slight price improvement, and we expect the median price to be around the same level throughout 2024.
In the face of rising housing costs, agents need to be agile. Lead generation is prioritized, so the sales funnel will always be filled. It is essential to think outside the box in your lead generation strategies and utilize all the tools you can find. We believe 2024 is going to be an exciting year for agents.
One Final Thought On Future Real Estate Trends
Let’s face facts: 2022 was a kind of a circus, and 2023 was unexpectedly slow, challenging at times, and a bit confusing. We had to contend with people who claimed that ChatGPT was simultaneously taking over jobs and Sitzer I Burnett! Our top picks for trends in the real estate market are promising a better 2024. If not, it’s at least not dull! Put on your AR goggles and picture yourself moving to South Carolina. Just don’t look us in the eye.
