10 New Real Estate Trends In Connecticut
10 New Real Estate Trends
Current trends in real estate include a mix of postive and negative developments. The market has been heavily affected by the Coivd-19 pandemic that has created a new housing enviorment which is expected to alter the way we approach real estate for the next years and maybe beyond.
Here are the 10 key emering real estate trends:
1. Increased Homeownership - Homeonwership rates have increased 2020 and are expected to rise by 5% by the end of 2021
2. Lower Interest Rates - Lower consumer spending during stay at home orders have resulted in lower interest rates, helping affordavility ratios.
3. Steep Increase in Housing Prices - Real estate has entered a seller's market that may increase inventory, slowing the pace.
4. Millennial Home Buying Strong - Millennials comprise 38% of the home buyers and seek mid-to-upper-middle class homes.
5. Affordable Homes Popular - 87% of the homes purchased were resale as millennials opted for homes needing TLC and updating over turnkey properties.
6. Shift to Second-Tier Cities - Real estate investors and buyers moved out of high-cost markets to second-tier cites and suburbs.
7. Technology Impact - Real estate professionals are using online home selling platforms, apps soicl meida, and smart home technology to enhance effectiveness.
8. Mortgage Interest Rates Expected to Settle - As the economy continues to grow, experts expect interest rates to rise and then settle.
9. More Demand for Luxury Homes - In the 3rd quarter of 2020, high-end home sales increased 60.7% year-over-year and this trend is expected to continue as more buyers prioritize an at-home lifestyles.
10. Smart Home Technology to Attract Tenants - Property managers are offering smart home technology in rentals units to attract and retain tenant.