Trends in Real Estate Investing
As a real estate investor, monitoring trends within the industry is one of the keys to ensuring you are making the smartest investment decisions possible. While there are certainly no guarantees, these trends offer a good look into today’s market and how it is likely to look heading into the new year.
The Impact of New Construction
2018 has seen a steady stream of new construction in key markets and this trend is likely to continue in 2019. While new buildings may result in decreased rent growth, the long-term averages are still likely to remain above average across the country. Similarly, while new developments initially had a negative impact on the co-op resale market, recent trends show that buyers are returning to co-ops because the prices are more moderate.
The Use of Technology
As technology continues to grow and expand, so will its use within the real estate market. Various online platforms have already changed the way that sellers and buyers look at the market, while also serving as valuable resources for agents and investors. This technology is likely to continue to grow in ways that can be tapped into by investors to help find investment properties, to monitor their investment properties and to gain exposure for those properties when they put them on the rental market.
Low Inventory
Low available inventory was a trend in 2018 that is likely to continue into 2019. A variety of factors appear to be contributing to this inventory shortage. These include economic issues, demographics and zoning regulations. Therefore, when searching for real estate investment opportunities, it is important to work with an expert who will ensure you find out about available properties as soon as they become available. By doing so, you will increase your chances of finding the real estate properties that you want to add to your portfolio.
Visual Marketing
Homebuyers and renters are increasingly demanding to get a sneak peek at properties before they come to view them in person. As such, visual marketing has experienced an upswing in demand over the past year. This trend is likely to continue as investors and real estate agents become more and more competitive within their individual markets. This means that individuals who specialize in visual marketing needs – such as those who specialize in virtual staging, virtual tours, drone video, and photography and creating interactive floor plans – will be in higher demand. If you want to be ahead of the game, you need to make connections with these professionals now so you can start working together to present your properties in the best light to potential renters.
New Opportunities on the Downswing
Many analysts predict a slow down within the real estate market despite the fact that population will continue to trickle up. In fact, the Congressional Budget Office projections show an average GDP growth of just 1.9 percent in 2018-2019, which means real estate is also likely to taper off. As a result, identifying and capitalizing on new opportunities such as replacing older buildings and investing in emerging markets will become much harder in 2019.