The evolution of the real estate market is unstoppable with new trends emerging every year. As the economy shifts into an even higher gear, with more consumers making plans to own homes, there is a lot you can expect. Compared to 2017 and other past years, you can expect 2018 to take you on a long ride in real estate as highlighted by Realtor.com.
Some of the main housing and real estate trends include:
Supply meets demand
From market analysis and after about three years of crushing shortages in homes for sale, especially homes within the consumers’ budgets, predictions for 2018 show that buyers will gain more control over the market as housing supply finally catches up with the buyers’ demands.
Read more at realtybiznews.com
The Texas economy continues to outpace the U.S. economy in job creation. The state gained 306,900 nonagricultural jobs from December 2016 to December 2017, an annual growth rate of 2.5 percent, higher than the nation’s employment growth rate of 1.4 percent.
According to the Real Estate Center’s latest Monthly Review of the Texas Economy, the nongovernment sector added 269,500 jobs, an annual growth rate of 2.6 percent, also higher than the nation’s employment growth rate of 1.6 percent in the private sector.
Texas’ seasonally adjusted unemployment rate in December 2017 was 3.9 percent, lower than the 4.8 percent rate in December 2016. The nation’s rate decreased from 4.7 to 4.1 percent.
Read more at www.recenter.tamu.edu
Commercial real estate pricing entered 2018 on a low note. Nationwide prices fell 0.3% last month, representing the ninth consecutive month of declines. “We edged off historic highs. The declines over the last three quarters have been mild and more of a stagnation than a decline,” Ten-X Senior Quantitative Strategist Chris Muoio said. “Prices have plateaued.”
As prices continue to fall, the industry’s aggressive fundraising efforts have left an abundance of dry powder — cash reserves set aside for investment purposes — in the market. Billions in capital that is not deployed, coupled with a lack of attractive investment opportunities, has contributed to the slight drop in commercial real estate valuations.
Read more at: https://www.bisnow.com/national/news/capital-markets/commercial-real-estate-pricing-drops-nationally-as-the-search-for-attractive-assets-persists-84666?utm_source=CopyShare&utm_medium=Browser
The digital transformation is more than just another buzzword. As the millennial workforce prepares for middle age, Gen Z is now also entering the workplace and continuing the drive for better technology and mobility. The future of commercial real estate is forcing landlords to evolve and meet a new set of tenant demands.
The entire landscape is evolving as we increasingly see consolidation and specialization in new and upcoming industries. Even finance, which has previously been accused of being slow to adapt to the digital world, is beginning to embrace flexible office space and diverting from its traditional office background. Tenants now have a much longer list of requirements than the traditional amount of square footage based on X amount of square feet per head.
Read more at Forbes.com