Technological advancements have a tendency to change every industry very rapidly. This is something that could not be applied to the real estate industry until very recently. Mainly due to the rising influence of millennials on the market, as well as because of a growing number of tech investments in the real estate sector, real estate as we know it is undergoing massive change at the moment and will look very different in the near future.
How Is This Transformation Taking Place And What Are The Benefits?
Simply put, the internet has reshaped the way in which real estate is delivered to the customer. For example, the National Association of Realtors states that 95 percent of customers are searching for real estate online with a record 51 percent actually finding their ideal home that way. This means that the internet continues to stand as one of the most popular resources for home buyers.
Additionally, the ever-growing real estate market is also seeing major trends like the expansion into mobile technology. On one hand, numerous older-generation real estate businesses find it difficult to adapt to how the younger generations communicate. On the other, younger and more agile real estate companies have witnessed technology-based improvements in their administrative tasks and business processes. All real estate brokers really need these days is a tablet or smartphone with an internet connection and they can do more from outside the office.
Social platforms are another major hub of activity for many real estate businesses. The thing about social media is – it is inherently relational. This makes it very simple and lucrative for estate agents to stay competitive, connected and leverage their online relationships for the purpose of generating leads and sales. Social media presence plays a vital role in such strategies, with many businesses having Twitter, Facebook, Pinterest or YouTube accounts and using them to generate business, post related articles, promote agents and share market reports.
Customizing Options & Expectations
Two things that characterize millennials as a generation is their drive for personal actualization and having high consumer expectations. These pursuits include the home as well, and this explains why providing top-tier amenities in new housing construction and developments has increasingly come into the focus. There is a growing demand for walkable neighborhoods with entertainment options, food and local shopping. Simply put, the millennials have a passion for the suburb experience.
As a result, both traditional and emerging real estate investments are experiencing significant competition and market growth, both of which are driven by the aforementioned increased expectations. A good example is the fact that there is a growing number of competitors like HomeAway, VRBO and other boutique options that are gaining popularity with consumers even though AirBnB was among the first to the scene.
In other words, if you are interested in learning just how much potential technology brings to the real estate market, simply observe this increase in brands. You’ll undoubtedly come to the same conclusion: that technology truly is reshaping the real estate industry and opening it up to new demographics by providing an efficient and potent mix of data, access and expertise.
Short Term Rental Investing With The Help Of Rental Analytics
When considering a purchase, people don’t want to look at just the price of a property. Factors and crucial data like return on investment, cash on cash return, cash flow and cap rate are very important for investors because they allow them to make the most informed decisions possible. It is similar to buying a stock – the same intelligent and actionable data is required for the best decision possible. When it comes to stocks, investors typically need much more information than just the stock price – they need the dividend, price/earnings ratio and the market cap.
The need for such resources that would help investors calculate their decisions is growing as a result of an increasing number of them looking for short term rental properties. In order to find the necessary data to make such decisions, one would have to be a seasoned real estate expert. That is exactly where predictive analytics come in and change the real estate market. How?
It takes a lot of work to compile historical data, trends and predictions for the future in a way that is useful for potential investors. The situation further becomes complicated if individual investors try to get data on short-term rent potential. Predictive analytics in the form of real estate search engines that use data to help people find properties based on potential returns and other, similar tech provides exactly such data and information in a very accessible and highly customizable format. Bottom line? Technology is not just reshaping real estate; it’s revolutionizing it. In real time.
This is a guest blog post from https://newstreet.ca/ in the greater Toronto & Hamilton Area.