By: Christel Silver Special to the Boca and Delray newspapers
Rising home prices combined with higher interest rates and a lack of inventory are the most critical concerns facing buyers today.
The Baby Boomers are in their retirement years – which will have an effect on the housing market. There is also an increasing demand for multifamily senior housing.
By 2030, 19 percent of Americans will be over the age of 65. Their needs are diverse because of financial situations and lifestyle expectations.
Lawrence Yun, Chief Economist of the National Association of Realtors in Washington, D.C. said, “People need to focus on the fact that we have a major housing shortage in this country.”
Students are graduating with huge student loan debts, which makes it much harder for them to buy their first home, even if they find a good paying first job. Some are moving back with their parents to save some money. Even if they didn’t have student loans, the affordability problem remains. Markets where prices have soared make buying a home problematic.
Once able to buy, they do have a demand for green homes. Young home shoppers are energy-conscious. They are looking to reduce their monthly bills, but are also concerned about overall energy consumption. Smart homes are on the rise and this trend will grow.
Building Codes will change. Last year California passed a law that rooftop solar panels be installed on all new single-family homes and low-rise multi-family buildings to offset the expected annual electricity use. So the initial cost may be higher – but then there is saving on the electricity.
The new tax law has an impact on homeowners who live in high taxed areas. The limit of deducting real estate taxes will be a hardship for many sellers. On the other hand, we might see a shift of some owners selling their homes in high taxed areas and moving to a lower taxed area.
The tendency to work from home will change the commercial leasing industry. Less room is needed. And that’s only going to become more common as the workforce gets younger and they are more comfortable with the technology of working remotely. The same is true for the remote shopping—fewer store fronts will be necessary in the future.
There is a new trend for “adult dorm” or “co-living” projects. I was introduced to this concept in Europe and have seen projects here also. Each resident has their own space, but the common elements are being shared. This concept is especially interesting in downtown areas, which is overpriced for many buyers.
Marketing will be (is) changing: 77 percent of home buyers prefer to take a virtual reality tour before actually looking at homes and 62 percent prefer to work with an agent offering this tool.
Do not forget the unconventional financing option, including purchasing real estate with Bitcoin. It has happened already. Using Bitcoin for the purchase creates a similar problem as with exchanging international currency. The rate is uncertain. These digital currencies are not part of the global banking community and at this time are unregulated.
The advancing technology about artificial intelligence (AI) will change life as we know it including real estate. These AI computers will be used to identify trends and opportunities.
About Christel Silver
Christel Silver is a full time Broker/Owner of Silver International Realty servicing the East Coast of South Florida. The National Association of Realtor’s (NAR) President appointed her (2010- 2014) and again for 2018 as the President’s Liaison to Germany. Christel is a Certified International Property Specialist (CIPS), and a certified speaker teaching CIPS classes. For more information visit www. silverhouses.com.