Whether you are a home owner, buyer, or renter, knowing current critical real estate trends is important. Fortunately, the Counselors of Real Estate get together to compile issues that could affect the industry. These are world and national events and their implications for real estate.
Shifts in world economy
After economic and political shakiness around the world, the International Monetary Fund amended that GDP growth to go downward in 2016 and 2017.
The economy could be decelerating. However, the United States is still popular with foreign buyers.
“A surge in Chinese buying of both residential and commercial real estate last year took their five-year investment total to more than $110bn, according to a study from the Asia Society and Rosen Consulting Group,” The CRE wrote.
Lending issues
The CRE predicts more restrictions are commercial real estate because lenders are reaching allocations. This could be an opportunity for “other, less regulated lenders to enter the market”, like crowdfunding to enter to market.
Demographics
Millenials are taking over as thousands of baby boomers retire each day. The CRE predicts multi-family developments to increase. Also, assisted living may increase for the baby boomer population.
“Look for a rise in renting over home ownership,” they also wrote.
The sharing economy
“Airbnb and Uber, companies that operate outside traditional regulations and offer alternatives for employment are two examples that show how the sharing economy is becoming more firmly established,” realtor.com wrote about the CRE’s report. The CRE predicts shared and virtual spaces to impact commercial real estate.
For more critical trends and more information about these, visit The CRE 2016-2017 Top Ten Issues Affecting Real Estate.
Here at RE/MAX Paradise in Miami, our agents are informed on critical real estate trends. Many of these issues will have impacts over time. With any questions about the current market, please contact one of our agents today!